Title Index
Recently Changed
Page Hierarchy
Incomplete
Tags
If a manual system is used to balance the checkbook, and you want to start using Profits Plus to balance the checkbook, these are the procedures to follow:
However, first here is some information about Check Account - Task 20 in Accounts Payable and Payroll Checking - Task 24 in Payroll Module.
1. If a transaction in AP Task 1 (Voucher Entry & Editing) has any check #'s, the check information is posted to Task 20 (Check Account).
2. AP Task 25 (Voucher Payment Preparation) also posts the check information to Task 20 (Check Account).
3. If the payroll module is used and the payroll comes from the same checking account as the A/P, then go into Accounts Payable (Module 3), System Management Functions (Task 32), & Post Payroll to Check File (Sub-task 6). This should be done after payroll is finished.
4. Use Task 20 (Check Account) in Accounts Payable to balance the checkbook.
5. Deposits and miscellaneous charges must be manually entered into this file (AP/Check Account/Task 20).
6. This file (AP/Task 20) is the source from which System Management Functions (Task 32), Display Current Checking Status (Sub-task 5), pulls its information.
Process to be implemented in Check Account/AP Task 20 or Payroll Checking/PR Task 24 (the directions below refer to Task 20 in AP, however the process can be done in Payroll, Task 24)
The process should be done at the end of the month, after the bank statement has been reconciled on the manual system. To proceed, go to:
· Accounts Payable ( Module 3)
o Check Account ( Task 20)
§ Erase Selected Checks Records (Sub-task 5).
All the A/P checks have been automatically posting to the Check Account master file (Task 20), so they must be erased the up to the date that the system will be used to balance the checking account.
The System prompts:
Are you sure you want to erase old records? (YES/NO): answer YES.
(Next the screen appears with the printer selections. A report will print listing the checks that were erased.)
Please enter - purge cutoff date: Type in the last day of the month just balanced manually.
Do you want to purge uncleared records? it defaults to N for NO. answer YES. (This should be the only time that YES is the response to purging uncleared records.).
Next, proceed to:
· Accounts Payable ( Module 3)
o Check Account ( Task 20)
§ Enter New Check Records (Sub-task 1).
Steps to follow:
Step 1. Enter all the deposits that did NOT clear the bank from the previous month. Each deposit is entered separately; thereby creating a new entry/record for each deposit.
EXAMPLE: The checking account on the manual system was just balanced for December, xxxx and there were deposits for the 28th, 29th and 30th that did not clear the bank. These are the deposits that need to be entered into the Check Account Master file.
Trx #: Press the ENTER key - automatically defaults to deposit 000000.
Date: Type in the date of the deposit, from the example above the first entry would be 12/28/xx.
Appl Area: This is a 3-character notation. These can be any 3 characters, however it is suggested that A/R be used for regular deposits that came through the AR module. Other suggestions are VSA for VISA Deposits, A/P for Accounts Payable and P/R for Payroll.
Written to: Three suggestions: (1) Press the ENTER key and leave blank. (2) Enter the vendor number if this entry/record is from AP. (3) Enter the employee number is this entry/record is for Payroll.
Clearance date: Press the ENTER key, defaults to 000000. This is used later when clearing checks/deposits to balance to the bank reconciliation.
Trx amount: Type in the amount of the deposit, no decimals.
Batch #: Press the ENTER key. This comes from Voucher Entry & Editing (Task 1) or Voucher Payment Preparation (Task 25).
Step 2. Enter all the checks that did NOT clear the bank from the previous month. Enter each check separately; thereby creating a new entry/record for each check.
EXAMPLE: The checking account on the manual system was just balanced for December, xxxx and check numbers 500, 501 and 505, all dated 12/28/xx, did not clear the bank. These are the checks that need to be entered into the Check Account Master file.
Trx #: Type in the check number, i.e. 500.
Date: Type in the date of the check, i.e. 12/28/xx.
Appl Area: A 3-character notation. Type in A/P for accounts payable checks and P/R for payroll checks.
Written to: Optional, enter vendor number for AP and employee number for Payroll.
Clearance date: Press the ENTER key, defaults to 000000. This is used later when clearing checks/deposits to balance to the bank reconciliation.
Trx amount: Type in the amount of the check, no decimals.
Batch #: Press the ENTER key. This comes from Voucher Entry & Editing (Task 1) or Voucher Payment Preparation (Task 25).
Step 3. Print the records to verify accuracy. Go to: Print Selected Check Records (Sub-task 4, in Task 20)
The first screen that appears is the printer information screen, select a printer. The system then prompts:
Please enter - starting TRX #: - ending TRX #: Press ENTER for All
- starting date: Use 01/01/70 as the starting date.
- ending date: Type in the last day of the month that was just balanced on the manual checking account system. Using our example from above, the date would be 12/31/xx.
Check each individual deposit and check. Make sure they are all correct.
On the last page are totals for UNCLEARED DEPOSITS and UNCLEARED CHECKS. Make sure they are correct.
Make any necessary corrections. To make corrections, go into Change Existing Check Records -Sub-task 2 if any information except the TRX # needs to be fixed. If the TRX # is wrong, then Delete the record (using sub-task 3) and re-enter the record all over again. Re-print the report (using Sub-task 4) and once again, verify the information. The information MUST be correct to ever be able to use the system to balance the checkbook!
NOTE: Once all records are correct, NEVER enter anything into the Check Account Master file (Task 20) with a date of the month that was just balanced on the manual system - in the example be used that would be December xxxx.
Step 4. Enter the bank statement balance for the beginning month. Go to: Enter New Check Record (Sub-task 1 in Task 20)
TRX #: Enter type 7 (Bank's checkbook balance).
TRX date: Type in the first day of the new month, from the example given in these instructions that date would be 01/01/xx
Appl Area: Press the ENTER key - information in this field is not necessary.
Written to: Press the ENTER key - information in this field is not necessary.
Clear date: Press the ENTER key - information in this field is not necessary.
Amount: Type in the EXACT amount of the bank statement balance that was just balanced on the manual system. (No decimals.)
Batch #: Press the ENTER key - information in this field is not necessary.
Step 5. Once again, go to Enter New Check Record (Sub-task 1 in Task 20). The Checkbook Balance must be entered.
To figure the checkbook balance: If EVERYTHING would have cleared the bank at the end of last month (the month that was just balanced on the manual system - from the example, that would be December) you can now figure the checkbook balance.
· Take the bank statement balance and add any uncleared deposits, and subtract any uncleared checks. This should be the checkbook balance.
TRX #: Enter type 6 (Your checkbook balance)
TRX Date: Type in the first day of the new month, from the example that would be 01/01/xx.
Appl Area: Press the ENTER key - information in this field is not necessary.
Written to: Press the ENTER key - information in this field is not necessary.
Clear Date: Press the ENTER key - information in this field is not necessary.
Amount: Type in the checkbook balance. (No decimals)
Batch #: Press the ENTER key - information in this field in not necessary.
Step 6. The information must then be sorted. Go to: Sort Existing Check Records (Sub-task 6 in Task 20)
The system prompts:
Are you sure you want to sort the file?(YES/NO): Answer YES.
Step 7. Print the records to verify accuracy. Go to: Print Selected Check Records (Sub-task 4, in Task 20)
The first screen that appears is the printer information screen, select a printer. The system then prompts:
Please enter - starting TRX #: - ending TRX #: Press ENTER for All
- starting date: Type in the first day of the new month (i.e. 01/01/xx).
- ending date: Type in the first day of the new month again (i.e. 01/01/xx)
· The reconciliation amount should be the same amount as the checkbook balance.
· "OUT OF BALANCE" should be zero.
Step 8. Enter all the deposits made so far for the new month. Go to: Enter New Check Records (Sub-task 1 in Task 20)
Step 9. The only entries that must be made manually to this file on a regular basis are the following:
· Unvouchered checks written - checks that were written before a voucher was entered into the system.
· Payroll checks. After the payroll is processed, go to System Management Functions (Task 32 in A/P,) Post Payroll checks to Check File (Sub-task 6).
· Deposits.
· Voided checks (Enter void check# with a $0.00 amount.)
Note: When the check file needs to be printed (Sub-task 4), the same date as the checkbook balance for the beginning date on the printout MUST be used. The current date can be used for the ending date.
NEVER enter, change, or delete anything dated for the month that was just started.
If the NEW BANK BALANCE does NOT EQUAL the BANK STATEMENT:
1.Make sure the report was ran for the correct date range.
· Starting date: Should always be the same date as the last bank and checkbook balances in the computer.
· Ending date: The last day of the month being balanced.
EXAMPLE: If January is being balanced, and the checkbook and bank balances in the computer are dated 01/01/xx, the beginning date of the report should be 01/01/xx.
2. Look for a transaction for the same amount that you are off.
3. Check all the miscellaneous charges and additions. Make sure they are all dated correctly, for the correct amount and cleared correctly.
4. Check the "ACCOUNT REDUCTION". This should equal the "debits" on the bank statement. The debits on the bank statement are the checks and charges.
· If the "ACCOUNT REDUCTION" is less than the "debits" on the bank statement, then there is a check or charge that was not cleared.
· If the "ACCOUNT REDUCTION" is more than the "debits" on the bank statement, then a check or charge was cleared that should not have been cleared.
5.Check the "ADDED TO ACCOUNT". This should equal the "credits" on the bank statement. The credits on the bank statement are the deposits.
· If the "ADDED TO ACCOUNT" is less than the "credits" on the bank statement, then there is a deposit that was not cleared.
· If the "ADDED TO ACCOUNT" is more than the "credits" on the bank statement, then a deposit was cleared that should not have been cleared.