How to Reconcile Payments from a Bank Statement to Microsoft Dynamics GP

by | Oct 19, 2018 | Dynamics GP, Financials

The question of “What is the correct way to reconcile items from my bank statement?” is common. In Dynamics GP, there are multiple ways to add lines to the bank reconciliation, and they are all correct from an accounting standpoint. The questions that you must ask are:

  • What am I trying to accomplish?
  • How much time do I want to spend on this?
  • What level of traceability do I want to have?”

1. The easiest way to reconcile is to simply use the bank transactions increase/decrease adjustment (Financial -> Transactions -> Bank Transactions).

Reconcile payments

  • Pros: Fast and easy
  • Cons: Cannot search who/what will not show up at year-end for tax reporting, not directly associated with any customer/vendor, not reported on the subledger

2. Creating Manual Payments/Receipts takes a little bit longer, but is probably the most effective (Purchasing -> Transactions -> Manual Payments or Sales -> Transactions -> Cash Receipts).

Reconcile Payments

Reconcile Payments

  • Pros: Transactions are linked to a vendor/customer and can be applied directly to open items or enter Distribution accounts is no open items exist, can increase search capabilities, is attached to vendor/customer accounts
  • Cons: Takes more time than a simple adjustment

3. Enter in customer/vendor invoices to recreate the invoicing/payment or invoicing/cash receipt process (Purchasing -> Transactions or Sales -> Transactions)

Reconcile Payments

  • Pros: Meets all internal controls/company practices, creates traceability for searching and year-end reporting
  • Cons: Time consuming and possibly “extra/unnecessary” work

All three methods will show you how to reconcile payments from a bank statement to Microsoft Dynamics GP.  However, in order to be able to track and run reports, reconciling at levels 2 or 3 is necessary.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Upcoming Events

february

26feb12:00 pm1:00 pmShorten your Quote-to-Cash Cycle with CPQ

27feb11:00 am12:00 pmConfab With Stoneridge - Livestream - Cool Features in Dynamics 365 Business Central

march

04mar12:00 pm12:30 pmPower BI & Reporting with Dynamics 365 Customer Engagement

04mar2:00 pm3:00 pmHow to Incorporate the Power Platform with Dynamics 365 Finance and Supply Chain Management

12mar11:00 am12:00 pmConfab With Stoneridge - Livestream - Power Apps AI Builder

18mar12:00 pm1:00 pmMoving from CRM On Prem to the Cloud – Is it worth It?

18mar2:00 pm3:00 pmThe Past, Present, and Future of Dynamics 365 with Machine Learning and Artificial Intelligence

25mar2:00 pm3:00 pmAchieve Total Data Access & Future-Proof Your Reporting

26mar11:00 am12:00 pmConfab With Stoneridge - Livestream - Portals

About Stoneridge
Stoneridge Software is a unique Microsoft Gold Partner, with emphasis on partner. With specialties in Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics CRM, we focus on attracting the most knowledgeable experts in the field to our team, and prioritize delivering stellar solutions with maximum impact for your business. At Stoneridge, we are deeply committed to your results. Each engagement is met with a dedicated team, ready to provide thorough, tailored, and expert service. Based in Minnesota, we intentionally “step into your shoes,” wherever you are. We focus on what you care about, and develop trusting, long-term relationships with our clients.

Subscribe To Our Blog

Sign up to get periodic updates on the latest posts.

Thank you for subscribing!

X