In this post, you’ll learn how to enter a negative deposit entry and use the deposit without receipt function.
Client Issue Overview
Our client recently implemented Microsoft Dynamics GP with its go-live date being February 1. The finance team wanted to open a new Chequebook card, which didn’t previously exist. The Chequebook card was created on January 31. To enter the opening balance, the client created a bank transaction entry, which was posted to the bank reconciliation window and the general ledger on February 1. During the February month-end process, the client found that the bank balance was twice as much as it should have been. However, all of the inquiry windows showed only one transaction.
The bank reconciliation window shows an additional $15,000 adjusted book balance. When the Chequebook was set up, the client had entered a reconciled balance of $15,000. This amount automatically creates the opening balance. Therefore, a separate increase adjustment in the bank transaction window wasn’t required.
The easiest way to correct this error is to use the bank deposit window to create a negative deposit without receipts for -$15,000. Most often, we use the deposit with receipts to select the accounts receivable cash receipts to be deposited in the bank reconciliations. This case created the perfect opportunity to use the deposit without receipt feature.
The negative deposit is posted on the bank reconciliation window to cancel the increased adjustment made to create the opening balance. The current Chequebook balance is corrected, and the client can complete their reconciliation.