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Bank reconciling

  • 1.  Bank reconciling

    Posted 12 days ago
    Unbalanced reconciliation:

    I have a pay date of 8-1 but the bank released the payroll 7-31 so this transaction is clearing my bank 7-31 and not 8-1.
    Difference is the payroll amount and I can't reconcile because my cut off date is 7-31.

    If I were to change the cut off date to 8-1 to select the payroll for July's reconciling what will that do to reconciling August's transactions on 8-1?


    or how can i fix this payroll amount to clear in July per the bank statement ending balance?

    thanks Tammy.



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    Tammy Bies
    Surgical Management Professionals
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  • 2.  RE: Bank reconciling

    TOP CONTRIBUTOR
    Posted 12 days ago
    Hi Tammy.

    You won't have an issue with August if you change the cut off date to 8/1.  Your other option is to reverse the 8/1 entry and re-enter it for 7/31.

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    Kristen Hosman
    Independent Dynamics ERP Consultant
    Mount Evans Consulting LLC
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  • 3.  RE: Bank reconciling

    SILVER CONTRIBUTOR
    Posted 11 days ago
    Tammy,
    Looking at your screen shots you jut need to clear the 22K amount and you are in balance. I would do that andmove on.
    Jeff

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    Jeff Strait
    Controller
    Ideal Deals, LLC dba Ideal Aluminum Products
    St. Augustine FL
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  • 4.  RE: Bank reconciling

    TOP CONTRIBUTOR
    Posted 11 days ago
    Hi Tammy,

    It is my understanding that the cutoff date just tells GP which transactions to make available for this specific bank rec, it doesn't change anything else.  By making it 08/01/19 you get all of those transactions available in the checklist.  When you check the payroll transaction, it will clear that transaction and balance your reconciliation.  Everything else that is unselected (either in July or the August 1st date) will show up on your uncleared transactions report, and be available for clearing in your next reconciliation.

    How we usually handle this is with the Grace Period.  In our system, we enter the same bank statement ending date and cutoff date, then it asks us, "Are you sure you want to match deposits by amount within the eight day grace period?"  If you say yes, then it automatically shows transactions for 8 days after the bank statement ending date (we never accept this default).  If you say no then it allows you to enter another grace period (we usually say 0, but occasionally we have your situation and we enter 1).  The results are the same as above, the transactions on the 1st will show up in the uncleared report, and the ending balance will show the transactions marked from the grace period.

    I'm not sure what the difference is between the changed cutoff date and the grace period.  Maybe someone else can answer that question.  But we use the grace period for this situation.

    If you want to actually correct the transaction to be July 31st, then I agree with Kristen, reverse the entry and re-enter it.

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    Nancy Edwards
    Director of Operations
    H&W Computer Systems, Inc
    Boise ID
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