KB 866167 - Description of the transaction flow in Bank Reconciliation for Microsoft Dynamics GP

Applies to: Microsoft Dynamics GP 2015Dynamics GP 2013Dynamics GP 2010

TechKnowledge Content


SUMMARY

This article describes the effect on the General Ledger balance and the Bank Reconciliation Checkbook balance when transactions are posted in Bank Reconciliation in Great Plains.

MORE INFORMATION


The following table summarizes how Bank Reconciliation transactions affect the General Ledger and the Checkbook balance when they are posted:
 

 

Transaction Type Update Checkbook Balance Update General Ledger
Check Yes Yes
Withdrawal Yes Yes
Deposits    
   - with receipts Yes No
   - without receipts Yes No
   - to clear unused receipts No No
Increase Adjustment Yes Yes
Decrease Adjustment Yes Yes
Receipts    
   - Check No Yes
   - Cash No Yes
   - Credit Card No Yes
Bank Transfer Yes Yes 

 

 

SUMMARY:

Basically, Cash Receipts only update GL when they are posted.  And when they are gathered up and posted in a Deposit, is when the checkbook balance is affected.   

Deposits (with Receipts/without Receipts) affect the checkbook balance only and do not update GL. 

Clear Unused Receipts (Deposits) simply remove receipts from the Deposit Entry window and do not affect the checkbook balance or GL. 

Checks, Withdrawals, Increase Adjustments, Decrease Adjustments and Bank Transfers affect both the GL cash account and Checkbook balance at the same time. 

 


This article was TechKnowledge Document ID:6982