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Checkbook balance not matching GL balance

  • 1.  Checkbook balance not matching GL balance

    Posted Feb 19, 2020 07:40 PM
    Using GP 2018

    We recently discovered the reconcile Checkbook to GL function, and in one of our companies, we can see that in 2014 there were a year's worth of transactions that were posted directly to the General Ledger cash account and not put through the checkbook. From 2015 and forward, the vast majority of transactions were put through the checkbook.

    I have reconciled the Checkbook to our Bank account statements, and those match, with no unreasonable outstanding transactions. However, the General Ledger is too high by roughly the amount of the transactions in 2014. I don't want to make an adjusting entry to the checkbook, since as far as I can tell, it's correct.

    It seems I would need an adjusting entry to the GL, but that doesn't make sense either, because the entries were already put in the GL.

    What am I missing?

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    Vanessa Halacsy
    Controller
    Wooster Motor Ways, Inc.
    Wooster OH
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  • 2.  RE: Checkbook balance not matching GL balance

    Posted Feb 20, 2020 06:59 AM
    Had the same issue. It was only a few hundred $ and corrected itself in the following month but I'm not sure what happened. Sorry I don't have an answer. I am brand new to GPUG and wanted to bookmark this conversation via a reply so I can see if anyone answers your question. Thanks.

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    Matt Fogarty
    Controller
    Lanham Hardwood Flooring
    Louisville KY
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  • 3.  RE: Checkbook balance not matching GL balance

    SILVER CONTRIBUTOR
    Posted Feb 20, 2020 08:20 AM
    Dear Vanessa,
    It sounds as though the Adjusted Book Balance does not coincide with your GL. If you believe both the checkbook balance and the GL balance are correct and the Adjusted Book Balance is what is incorrect, you can make a deposit without a receipt to correct this issue. FINANCIAL>TRANSACTIONS>BANK DEPOSITS.
    Option: Enter/Edit
    Type: Deposit without Receipts
    Description: Adj Book Bal 2014
    Deposit Amount: (here you can put a negative or positive amount)
    Post and then re-reconcile the checkbook
    Hope the problem is a simple as this. Good luck!

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    Denise McCaughan
    Administration Support Manager
    Southern Manatee Fire & Rescue District
    Bradenton FL
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  • 4.  RE: Checkbook balance not matching GL balance

    SILVER CONTRIBUTOR
    Posted Feb 20, 2020 08:49 AM
    Yes your checkbook must be out of balance by those entries. Denise's solution sounds good because that will adjust the check book with out a JE. I have just done the same thing from adjustment entries and hit the same cash account as the distribution, That way, the check book changes but the ledger does not. Good luck.

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    Jeff Strait
    Controller
    Ideal Deals, LLC dba Ideal Aluminum Products
    St. Augustine FL
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  • 5.  RE: Checkbook balance not matching GL balance

    TOP CONTRIBUTOR
    Posted Feb 20, 2020 06:50 PM
    HI  Vanessa,

    Just in case you haven't seen this article yet...



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    Gerald Buenafe
    Owner/Consultant
    BTP Technologies LLC
    CHANTILLY VA
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  • 6.  RE: Checkbook balance not matching GL balance

    TOP CONTRIBUTOR
    Posted Feb 21, 2020 07:04 AM
    @Vanessa Halacsy,

    My first question would be "does the GL balance on the Reconcile to GL report match the actual GL balance of the account"? If not, then the scenario you are experiencing may be a deeper issue than may involve making a correction on the back end.

    I have a printed copy of a kb from 2014 (http://support.microsoft.com/kb/866570) that has a section at the end with some important notes. Although this article specifically refers to reconciling between AP/AR and the GL, the information is still relevant in your case. I have always followed the guideline that the Reconcile to GL is a troubleshooting tool, not your primary reconciling tool.

    From the KB: A1: The reconcile to GL feature is a 'troubleshooting tool' to help users identify unmatched distributions between RM/PM and GL. It was not necessarily meant to tie out to the HATB and that was not the intended purpose, although we know clients are doing it. The balances on the Reconcile to GL spreadsheet are best estimates using a simple addition/subtraction on the distributions in the table. Whereas the balances on the HATB take nearly every table into consideration and are much more complex and accurate balances and so the two often don't tie out.
    The true reconcile should be between the RM or PM Historical Aged Trial Balance (HATB) and the GL Trial Balance reports. If these match, then you would not necessarily need to run the Reconcile to GL tool for that month. The GL tables are made up of debits and credits, and the tables that the HATB pulls from are transaction header and apply record tables. So customers asked for a way to reconcile the distributions in GL to the distribution tables in RM or PM to help find differences at that level. So this is the reason why the Reconcile to GL routine was created. It was intended to be a troubleshooting tool to compare distributions to distributions between the modules to help identify missing distributions, that may lead you back to a missing transaction from the HATB. So use the Reconcile to GL tool as an 'aid' only to help you reconcile the HATB to GL Trial Balance. If the HATB and GL TB balance, then there isn't really a need to run the Reconcile to GL tool for that month.​

    I recommend that you go to the Checkbook Balance screen and look to see if the math is correct. What I mean is that on the first line of history, does the transaction and the first ending balance match? Also, on the Checkbook Card, does the Checkbook Balance and GL Balance match? If they do, then you might want to ignore the 2014 transactions. At some point it might be necessary to ask your partner to step in to assist.



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    Barbara Gavron
    Atlantic Beach / Jacksonville FL
    904-536-0129
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