Transition to Computer Using Multiple Checking Accounts

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 read the document Task 20 - Check Account. This document has a lot of information that can be used as a reference.

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)

Multiple checking account scenario:

Checking account #1: All of the checks are paid out of this checking account. The checks that come in the mail are deposited into this checking account.
Checking account #2: The checks and cash that come in over the counter are deposited into this checking account.
Checking account #3: The credit cards are automatically deposited into this account.

Everywhere in the system the division is a warehouse, location or an FM. For this scenario, in Task #20 Check Account ONLY, the division is the checking account #. (Everywhere else in the system, division # is the division #.)

The process should be done at the end of the month, after all three bank statements have been reconciled on the manual system. To proceed, go to:

Accounts Payable ( Module 3)
- Check Account ( Task 20)
  - Erase Selected Checks Records (Sub-task 5).
    - All A/P checks automatically posted to the Check Account Master file (Task 20) must be erased up to the date the system will be used to balance the checking account. Answer the system prompts as follows:
    - 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 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)
- Check Account ( Task 20)
  - Enter New Check Records (Sub-task 1).

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. Enter the outstanding deposits for checking account #1 first, using division 01 on each. Next enter the outstanding deposits for checking account #2, using division 02 on each. Finally enter the outstanding deposits for checking account #3, using division 03

EXAMPLE: The checking account on the manual system was just balanced for December, 20xx 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 normally comes from Voucher Entry & Editing (Task 1) or Voucher Payment Preparation (Task 25).
Division #: Type in the appropriate division/checking account #

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. Enter the outstanding checks for checking account #1 first, using division 01 on each. Next enter the outstanding checks for checking account #2, using division 02 on each. Finally enter the outstanding checks for checking account #3, using division 03.

EXAMPLE: All three checking accounts on the manual system were just balanced for December, 20xx and check numbers 500, 501 and 505, all dated 12/28/xx, did not clear the bank for checking account 01 . These are the checks that need to be entered into the Check Account Master file with division 01. (Since in our scenario we said all of the checks are paid out of checking account 01)

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).
Division #: Type in the division/checking account # 01

Step 3. Print the records to verify accuracy. Go to: Print Selected Check Records (Sub-task 4, in Task 20)

Print a report for each checking account/division separately. 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, for example, to be sure everything is printed on the report.
- 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.
Division #:01
Then print it again for Division 02, then again for division 03.
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 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 used, it would be December 20xx.

Step 4. Enter the bank statement balance for each checking account dated the beginning month. In this scenario enter in 3 different type #7’s, one for each checking account. 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, the 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.
Division #: Enter in first division 01, then 02 & 03.

Step 5. Once again, go to Enter New Check Record (Sub-task 1 in Task 20). The Checkbook Balance must be entered for each checking account. Three type #6 Checkbook balance will be entered, one for each checking account, and each with a different division #.

To figure the checkbook balance: If EVERYTHING 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 it 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.
Division #: Enter in first division 01, then 02 & 03.

NOTE: It is recommended that the type 6 for each division/checking account equal the amount of the checking account in General Ledger.

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). Print a report for each checking account/division separately

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)
- Division #:01
Then print it again for Division 02, then again for division 03.
The reconciliation amount should be the same amount as the checkbook balance.
"OUT OF BALANCE" MUST be zero. If there is an amount in the “OUT OF BALANCE” STOP to figure out why before going any further.
- Verify the type # 7 -Bank’s Checkbook Balance. Make sure it is the exact same amount as the bank statement balance. Make sure it is dated the first day of the new month.
- Verify the type # 6 - Your Checkbook Balance. Make sure it is dated the first day of the new month. Take the bank statement balance add in uncleared deposits, subtract uncleared checks to get the correct amount for type #6 -Your Checkbook Balance.
- Take the printout that showed the “OUT OF BALANCE” amount, add up all uncleared deposits dated before type #6 and 7 for a total. Make sure it is the same as the figure used in the above #2 for uncleared deposits.
- Take the printout that showed the “OUT OF BALANCE” amount, add up all uncleared checks dated before type #6 and 7 for a total. Make sure it is the same as the figure used in the above #2 for uncleared checks.

Step 8. See the document “Task 20 - Check Account” for a full explanation of the entries that need to be manually entered into the checking account. Now is the time to enter the manual entries for the new month. Go to: Enter New Check Records (Sub-task 1 in Task 20)

If the NEW BANK BALANCE does NOT EQUAL the BANK STATEMENT:
- 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.
- Look for a transaction for the same amount that you are off.
- Check all the miscellaneous charges and additions. Make sure they are all dated correctly, for the correct amount and cleared correctly.
- 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.
- 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.

NOTE: Most of the time you have to actually take the computer printout and put it next to the bank statement, and very carefully, check off each transaction. Make sure each one on the bank statement is cleared on the computer printout and make sure it is for the correct amount.