Load Outstanding Check's from Legacy System

[Former Member]

I have a client who went live on November 1, 2016. They did not load any of their outstanding check's and just loaded their open GL balance. Now they are trying to do a bank reconciliation and those checks are not present to clear.

How does one load these checks after the fact and not have then effect the GL?

[Former Member]

Hi Kristin and anybody out there with the same problem.

What I am attempting to do is back out all previous bank reconciliation's and then go in and add back in any uncleared checks or deposits and then JE them away based upon Kristin's process and then go back and do the bank rec with those entries. I am hoping this will solve our issue.

Matt

[Former Member]

HI Kristin,

I have tried this approach the only problem is that with his approach you will get both transactions in the Bank Rec so they will net each other out. My customer went live three months ago and we never loaded any outstanding checks or deposits so if I do this the bank rec will not rec since the credit and debit will be the same and net each other out.

Do you know of a way to add a check in the system to show up on the Bank Rec and not effect the ledger? I tired JEing the bank with a debit and a credit but that did not work. Also tried a manual payment as well with the same result.

Matt

[Former Member]

Hi Mathew,

We follow the below procedure for a customer's first bank rec:

1. Do a journal entry with the date of Go Live to record all outstanding checks and deposits from the legacy system as follows:
Enter all outstanding checks as a credit and all outstanding deposits as a debit. The GL account will be checking account on each of these lines. In the "Remarks" on each line, enter the check number or date of the deposit (i.e. ck 15404 or "12/31/15 deposit"). The debit or credit difference will go to the opening balance account. Next, we'll make an adjustment to the checking account opening balance to account for the outstanding checks/deposits we entered in this step:
2. Access the Opening Balance Utility under Administration>System Initialization>Opening Balances>G/L Accounts Opening Balance. Take the checking account's ending balance from the legacy system. This is the amount to enter as the opening balance (date the opening balance for the day of Go Live). For example, if the cash balance from the legacy system in the cash account was (136,803.70) and the total of all outstanding checks netted with outstanding deposits was $329,753.18, then the opening balance amount to be entered is ($136,803.70) + 329,753.18 = $192,949.48.
3. When you go to the Manual Reconciliation screen and begin doing the first bank rec, in the "Reconciliation Bank Statement" screen, go to "Form Settings" and be sure to show the "Remarks" field. This is how the customer will easily check off cleared checks and deposits that were outstanding from the legacy system.

Continue with the normal bank rec procedure from here. I hope this helps. We spent some time putting this procedure together and it works for our customers.

Kristin