Client Issue Overview
Our client was conducting an audit and wanted to clean up outdated cheques that were more than 3 years old. The problem was that they had previously completed a Dynamics GP update and the current GL balance was correct. There was a concern that by voiding the cheques, they would report an overstated bank balance, which they did not want. Essentially they wanted to remove the cheques from their bank reconciliation, without impacting the bank balance. Here is how we helped.
The Bank Transaction window is used to make adjustments to the chequebook. Entries made here are updated in the general ledger. Keep in mind that the reverse is not true. Entries made directly in the general ledger (as a journal entry) do not automatically update the chequebook and will not appear on the Bank Reconciliation window.
We proceed by making an increase entry in the Bank Transaction window. In our example the amount is $13,512.03. The logic is to have these outstanding cheques clear against the increased adjustment we created.
Secondly, the offsetting distribution entry should be made to the same GL account as the increase adjustment. Dynamic GP is not concerned with the offsetting account as it is only the adjustment entry that is recorded on the reconciliation window. The GL, in this case, will not be impacted. Post the transaction to complete the step.
The outstanding cheques are selected as cleared against the corresponding increase adjustment. The GL account is unchanged and the client was able to continue with a more accurate monthly bank reconciliation process.