The Cash Management (CM) module is the place to go to find the task (CM>Tasks>Reconcile) to balance your company’s “checkbook” to your bank statement. After you have successfully cleared all of the transactions that appear on the statement, reducing the amount in the Difference field at the bottom of the screen to $0, and click Finish to complete this task, are you doing anything else?
Best practices to assure that you General Ledger (GL) cash is correct are to:
1. run the Bank Reconciliation report (CM>Reports>Reconciliation>Bank Reconciliation) to generate a list of reconciling items that when added to or subtracted from the bank statement ending balance equals the end of the month “book” balance.
2. Does the Adjusted Bank Balance equal the Register Balance? If they don’t, check the following for possible clerical error(s):
a. The item has a Reconciled Status of “Cleared” (C) instead of “Reconciled” (R).
b. Your PR module accounting date setting is “Period End Date” instead of “Check Date”.
c. The reconciled transaction has a date beyond the bank statement date (most common).
3. You are not done yet. Run the GL Year-to-Date Ledger report (GL>Reports>Year-to-Date Ledger), entering the first and last date of the month being reconciled as the date range and clicking on Range to select the GL Cash Account. Does the end of the month GL Cash Balance per the YTD Ledger match the CM Register Balance per the Bank Reconciliation report? If yes, congratulations, you now have truly reconciled your general ledger to your subsidiary ledger (in this case, CM). If not, you have more work to do. Start with three of Sage’s Knowledgebase articles: 64702, 19197, and 27437.
In summary, treat your CM module exactly the same was as you manage your AR and AP modules when it comes to month-end closing and reporting. No doubt you run your AP and AR Aged Trial Balances at the end of each month and compare those totals to the General Ledger. Doing the same for CM will give you peace of mind that your “book” cash is accurate.
Should you need any further assistance balancing your cash, please call your United Solutions, Inc. consultant.
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