In Dynamics GP there are a few windows related to cash receipt, bank activity and reconciliation of bank statements; below is a breakdown of each window:
- Bank Deposit – enter a deposit of funds (with or without receipt) that updates the checkbook
- Cash Receipt Entry – recording of funds received from a customer
- Bank Transactions – enter specific bank transactions to update a checkbook as needed
- Reconcile Bank Statement – allows the user to reconcile the checkbook to the statement provided by the bank
Bank Deposit Window
A bank deposit never changes the GL cash account, instead a deposit changes the checkbook balance. The GL cash account was increased when a user recorded the cash receipt (see cash receipt journal below). A user can use the Bank Deposit Window to enter (or void) several different bank transactions (see below).
- With Receipts – generated from AR cash receipt, AP return, or Bank Transaction Entry
- Without Receipts – enters a transaction to the Checkbook ONLY, has no GL or sub ledger impact
- Clear Unused Receipts – used to clear receipt transaction to remove receipts from the system. (Ex. Existing receipt that won’t be assigned to a deposit because the amount has already been deposited.) The deposit amount is zero and the checkbook and GL cash account are NOT updated when posted.
- Deposit EFT – used to enter the deposit of electronic funds that have been received
To access the Bank Deposit Window, select “Financial” from the Navigation Pane and then select “Bank Deposit” from the Transaction section of the area page.
The Bank Deposits Entry window will open and the following fields will need to be updated.
- Option – set to Enter/Edit (or void)
- Deposit Date – enter a date
- Checkbook ID – specify the checkbook
- Type – select option based on detail above
- Deposit Number – should auto-generate
- Receipt Type – select as needed (Check, Cash, Credit Card)
- Date – select as needed All vs specific date range
Once complete hit Post and close the window and print any output reports as needed.
Cash Receipt Entry Window
This journal shows the GL impact of receiving payment from your customer. Normally the GL cash account is increased and the accounts receivable account is decreased. However, it is important to note that a cash receipt does not increase the checkbook balance until the user deposits the funds through the Bank Deposit Window.
To access the Cash Receipt Entry Window, select “Sales” from the navigation pane and then select “Cash Receipts” from the Transactions area page.
The Cash Receipts Entry Window will open and the following fields will need to be updated:
- Receipt Number – auto updated
- Customer ID – enter or find the applicable customer
- Batch ID – optional
- Date – as needed
- Select the payment type (Check, Cash, Credit Card)
- Checkbook ID – select if not setup to auto insert based on Customer, Batch, or Receivables Setup
Next, you can select the “Auto Apply” button from the Action Bar and this will automatically apply the cash receipt to open invoices or select the “Apply” button on the bottom right to manually apply the funds.
If the user chooses to manually apply the window below will open and you can check the box on the left that relates to the necessary invoice to pay against. Then select OK.
Next, after applying the funds (or auto-apply) select Save or Post (pending batch setup).
Bank Transactions Window
This window allows the user to enter bank transactions that will update the checkbook and aide in reconciliation. A user has the ability to both enter and void transactions and receipts. An example of a need to use this window would be if funds are received that do not relate to a specific invoice from a customer; through this window the user can still enter the receipt of cash. Listed below are the type of actions that can be performed from this window:
- Enter Transaction – check, withdrawal, increase or decrease adjustment
- Enter Receipt – receipt of cash, check, or credit card
- Void Transaction – select a prior transaction to void
- Void Receipt – select a prior receipt to void
Select Financial from the area Navigation Pane and then select Bank Transactions from the Transactions area pane.
When the Bank Transactions Entry Window opens and the option of “Enter Receipt” and type of “Check” have been selected the following fields will need to be updated:
- Option – changed to desired action (see above)
- Transaction Date – auto updates or change as needed
- Checkbook ID – select the proper Checkbook ID
- Currency ID – auto populates based on Checkbook ID
- Number – auto populates
- Type – select based on the option selected (see above)
- Account – Enter the accounts to have transactions to impact GL
Next select “Post”.
Reconcile Bank Statement Window
Users will come here to reconcile their checkbook with their bank statement. The user will mark the transactions that have cleared the bank and check that the amounts against the statement. If a transactions cleared for a different amount, then the users have the ability to enter an adjustment and distribute the amount to the desired posting account.
To access the Reconcile Bank Statement Window, select “Financial” from the Navigation Pane and then select “Reconcile Bank Statement” from the Transaction section of the area page.
When the Reconcile Bank Statement window opens the following fields will need to be populated:
- Checkbook ID – select the desired checkbook
- Bank Statement Ending Balance – enter the final balance per the statement
- Bank Statement Ending Date – enter the ending date per the statement
Next, select the Transactions button in the lower right corner. The user can then begin to reconcile deposits, withdraws, etc. as shown below.
If a difference remains and it is a known amount, then the user can select the “Adjustments” button in the lower right.
The Reconcile Bank Adjustments window will open and the user can enter any necessary adjustments as needed.
Once back on the Select Bank Transactions window the difference is now zero and the user can select the “Reconcile” button in the lower right corner. The reconcile process updates the Bank Reconciliation, General Ledger, and the checkbook balance.
Close and print the output reports as needed.