This chapter contains the following topics:
Before performing a reconciliation, you must first set it up.
Per the C/R Control information you may be posting payment and deposits data automatically. When it is set up for A/P, A/R and PR that way, you will not have to transfer data from these modules. You may still have to enter other data manually as explained below.
Before reconciling, make sure you have entered (or transferred from other modules) any of these items:
| • | Interest received |
| • | Returned customer checks which you have already deposited |
| • | Bank charges |
| • | Returned vendor checks, which have already been posted. |
There is a Returned checks function in A/R where you can enter charges from your bank, an optional service charge to your customer which produce during posting the G/L distributions needed for all of the above.
Use the appropriate instructions in this chapter before beginning a reconciliation (see Reconcile Statements).
Enter interest received as an adjustment, using Checkbook entries. You will distribute to General Ledger there also.
Returned checks are handled differently, depending on whether you are using PBS Accounts Receivable (A/R) and how you are using it.
If not using the PBS A/R
Enter an adjustment, using Checkbook entries, for the amount of the returned check plus any bank charges. You will distribute to General Ledger there also.
If using the PBS A/R
A returned check means that the entries that were previously paid are no longer paid. The customer’s balance must therefore be increased. Bank charges may be assessed at the time when the returned check amount is entered. You may also charge your customer a returned check charge.
Checks that are returned to vendors are handled differently, depending on whether you are using the PBS Accounts Payable (A/P).
If not using the PBS A/P
If a check you wrote to a vendor is returned due to insufficient funds, there may be a service (penalty) charge. If this check has not already been entered using Checkbook entries, it would be entered as void at this time. If it has already been entered change the status of the check to void. You must enter a negative adjustment, using Checkbook entries, for the service charge and distribute it to General Ledger.
If using the PBS A/P
Use A/P Void checks to void the check. Refer to the Void Checks chapter in the A/P documentation for details on voiding checks.