Difficulty Level: Beginner Level AccountMate User

Version(s) Affected: AccountMate 8 for SQL and Express AccountMate 7 for SQL, Express and LAN AccountMate 6.5 for LAN

Module(s) Affected: AP, BR, GL, PR

Posting Date: 03/13/2013

DESCRIPTION

AccountMate allows you to print and void an AP or PR check in different periods. When you print a computer check or post a handwritten check, AccountMate generates a journal entry that reduces the cash account balance in the General Ledger (GL) module. In the Bank Reconciliation (BR) module, this check is treated as an outstanding check. When you void this check in a subsequent period AccountMate generates a journal entry that reverses the cash account balance reduction in the GL module. In the BR module, however, the voided check is removed from the BRCTRL table and will no longer display as an outstanding check in the current or prior period. Consequently, the cash account balance in the BR and GL modules become inconsistent in the current or prior period; thus, there is a need to match the cash account balances.

This Technical Note discusses the effects of voiding checks in a period subsequent to the period they were posted to GL. This document also discusses the procedures to reconcile the cash account balances in the GL and BR modules.

Note: For AccountMate 8.2 for SQL/Express and higher versions, this Technical Note applies only to AP checks.

SOLUTION

The following scenario results in an inconsistency between the GL and BR cash account balances:

1. You print a computer check or post a handwritten check in the AP or PR module with a check date in the current or prior period.

2. In the subsequent period, you void this check using the Void Check function in the AP module for AP checks or the Void Payroll Check function in the PR module for PR checks. The specified void date must be in a period subsequent to the check date. When you print the AP or PR check, AccountMate generates the journal entries that reduce the cash account balance in the current or prior period. These journal entries are reversed when the check is voided in the subsequent period.

In the BR module the AP or PR check appears as an outstanding check in the Bank Reconciliation Report for the current or prior periods. When the check is voided in the subsequent period, the check is removed from the BRCTRL table and will no longer appear as an outstanding check in the Bank Reconciliation Report for the current or prior periods. This results in an inconsistency in the GL and BR cash account balances for the current or prior periods; thus, reconciliation is necessary.

To reconcile the GL and BR cash account balances, you must record in the BR module an Other Disbursement transaction for the voided AP or PR check for the current or prior periods. Be sure that you do not post it to the GL. In the subsequent period, the Other Disbursement transaction must then be voided.

Prior to reconciliation, the following requirements must be met:

1. In the Transaction Code Maintenance function, create a transaction code for the voided AP or PR check. You must leave the Require Check/Deposit # checkbox unmarked for this transaction code record.

2. Enable the Transfer to GL checkbox in the Record Checks/Other Disbursements function. To do this, follow these steps:

a. Access the BR Module Setup ►General tab.

b. Select the Prompt Before Posting option in the Post Transaction to GL area.

Perform the following steps to reconcile the GL and BR cash account balances:

1. Reconcile the cash account balances for the current or prior period. To do this, perform the following steps:

1.1. Access the Record Checks/Other Disbursements function.

1.2. Select the Record Other Disbursements option from the first list box.

1.3. Enter in the Bank # field the bank code for which you will record the Other Disbursement transaction.

1.4. Enter in the Transaction Code field the voided AP or PR check transaction code.

1.5. Enter in the Disb. Date field the voided AP or PR check’s original post date.

1.6. Enter in the Disb. Amount field the voided AP or PR check amount.

1.7. Fill in the necessary information in the rest of the fields.

1.8. Unmark the Transfer to GL checkbox and click the Save button.

Note: After performing the above steps, the inconsistencies in the cash account balances should be reconciled for the current or prior periods; however, the subsequent period cash account balances will become inconsistent. The Other Disbursement transaction that was recorded in the current or prior periods will still be treated as an outstanding check in the subsequent period.

2. Perform bank reconciliation and print the necessary reports for the current or prior period.

3. Reconcile the cash account balances for the subsequent period. To do this, perform the following steps:

3.1. Access the Record Checks/Other Disbursements function.

3.2. Select the Amend Check/Disbursement option from the first List box.

3.3. Enter in the Bank # field the bank code for which you recorded the Other Disbursement transaction.

3.4. Enter in the Transaction # field the number for the Other Disbursement transaction.

3.5. Unmark the Transfer to GL checkbox and click the Void button.

3.6. In the Void Checks/Other Disbursements window, enter in the Void Date field the same date when the AP or PR check was originally voided in the AP or PR module.

Note: Performing the above steps will reconcile the cash account balances for the subsequent period. Note that voiding the Other Disbursement transaction will remove this record from the BR tables; thus, the cash account balances for the current or prior period may again result in inconsistencies. That is why it is important to perform bank reconciliation and print any necessary reports for the current or prior period before reconciling the cash account balances for the subsequent period. The discussion above may help you locate cash account balance inconsistencies in the GL and BR modules caused by voiding checks in subsequent periods. Knowing the procedures for correcting these cash account balance inconsistencies can help you perform timely and effective bank reconciliation.

This information is provided “AS IS” without warranty of any kind. AccountMate Software Corporation (“AccountMate”) disclaims all warranties, either express or implied. In no event shall AccountMate be liable for any damages whatsoever including direct, indirect, incidental, consequential, loss of business profits, or special damages, even if AccountMate has been advised of the possibility of such damages.

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