In this blog, I wanted to address the variety of factors that may lead to your Checkbook balance and General Ledger Balance differing. Some vital information that should be collected to evaluate why the balances are different are:
- What is the difference between the General Ledger Cash Account and the Checkbook balance?
- When did the balances between the General Ledger and the Checkbook last match?
- Are there any un-posted General Ledger batches?
- Are there any Cash Receipts not deposited?
- What are the results from the Reconcile to GL function in GP: Microsoft Dynamics GP – Tools – Routines – Financial – Reconcile to GL
There are several things that can cause your General Ledger Cash Account and Checkbook balances to differ. The most common issues that may cause this difference with the corresponding results to the balances are:
- Cash Receipts were posted to the General Ledger in either the Bank Reconciliation or the Accounts Receivable modules, but a deposit was not made in the Bank Reconciliation module. Result: This will make the General Leger Cash Account balance greater than your Checkbook balance.
- The General ledger setup is marked as Post To, the batch has not been posted in the General Ledger, and the Deposit has been entered in the Bank Reconciliation Module. Result: This will make the General Leger Cash Account Balance less than the Checkbook balance.
- A transaction was entered against the Cash Account in the General Ledger, but a corresponding entry was not made in the Bank Reconciliation module. Result: This will make the General Ledger Cash Account balance and Checkbook balance differ by the amount of the transaction.
- The General Ledger setup is marked as Post To and the transaction was edited in a General Leger batch prior to the batch being posted to the General Ledger. Result: This will make the General Leger Cash Account balance and Checkbook balance differ by the difference between the posted transactions.
- The transaction in the Checkbook was posted with a different date than the transaction posted to General Ledger. Result: This will make the General Leger Cash Account balance and Checkbook balance differ for the time period between the two dates. The balances will once again be balanced after both dates have passed.
- The General Ledger Cash Account was used for both the debit and the credit side of the transaction. Result: This will cause the Checkbook balance to change, but the General Ledger Cash Account balance will have a net difference of zero.
- A deposit with no receipts was posted to the Bank Reconciliation module, but was not posted to the General Ledger. Result: This will cause the Checkbook balance to be greater than the General Ledger Cash Account balance.
- A Non-Cash account transaction was posted to the General Ledger Cash Account. Result: This will cause the General Ledger Cash Account balance to change based on the transaction amount, but will not affect the Checkbook balance.
- A Posting interruption occurred causing the posting to not full complete. Results: The results from a Posting interruption depend on why the posting was interrupted.
ANDREW FRASER | Senior Business Software Consultant
As a Senior Business Consultant, Andrew is responsible for the implementation and support of CRM, GP, and other Microsoft products assuring that our solution scoping, architecting, and delivery meet and exceed customer expectations. He helps clients analyze their current business processes and provide them with process improvements. During his time at KTL, Andrew has built lasting relationships with clients by understanding their business needs and provided value by leveraging their existing resources. Andrew has more than nineteen years of experience in implementing business software for a variety of industries including service, government, distribution, not-for-profit, and manufacturing. He graduated with a Bachelor’s Degree in Math with a concentration in Computer Science and a Bachelor’s Degree in Business Marketing from St. Andrew’s University in Laurinburg, North Carolina. His experience includes helping companies embrace technology to fulfill their organizational needs and creating innovative solutions using CRM, GP, and other Microsoft products.
