Bank Reconciliation

Why do we need bank reconciliation ?

https://www.youtube.com/watch?v=aeOOZdLTX0s - Bank reconciliation part 1

https://www.youtube.com/watch?v=1ucXpzjUajY - Bank reconciliation part 2

1. Internal Control.

2. We review cancel checks , we get opportunity to check any fraud had happend ...

Two Balances at end of each month.

i) bank statement from the bank

ii) balance as per books in company

if to are different, we find the items that cause the difference.

To come up with true cash balance , its not either bank statement or, balance in books.

Chart of Accounts

Realized loss/Profit – a/cs ( GL Exchange rates – Posting tab) – Ex : we send Customer Invoice , if exchange rate value is different  . Accounts we use when we have ex. Exchange rate is one today and different from the payed date.  If we have loss/profit due to currenty , Then we use these a/cs.

Our company currency is set , Basic >> Company Information >> Other tab >> currency

Secondary Currency : Suppose we have head quarters then we set , Secondary currency to Head quarter currency when it is different from Company currency.

Periods :

When we run ERP system we need to have periods , to Posting ..

To generate annual report / half yearly ..

GL >> Setup >> Periods .

We can open for posting , for memebers with User group – Admin ( we can set this in Module Status Tab ) in Periods form.

Once period is closed we cannot reopen .

We can create Create New Fiscal Year … ( By pressing button in Periods).

Split up Periods at time  ( divide Period) – In my case, when 2 different companies are merging we get situation like this .

Date intervals :

When we want Financial statements, we use Date intervals.

Set up of different intervals Eg.

·        This month

·        Prior month

·        Q1, Q2, Q3, Q4.

·        This year

·        Prior year

·        A specified period – First 5 months of year

GL >> Setup >> Periods >> Date Intervals ( get automatically when installed AX).  We get values based on present date.

Dimension :

 To minimize the no.of a/cs .. Dimension is a/c with the main account.

Basic >> Dimensions …   ( Department, CostCentre, Purpose)

We can set up Default dimensions for a/c  in Accounts …

Dimension Focus :  Defines in which order dimensions and accounts should be printed.

            GL >> Setup >> Financial Statement >> Dimension Focus .  ( to set the sequence of showing … )

Chart Of Accounts

Ø  Chart of accounts is first and one of the most important . No other module will work without the Chart of Accounts.

Ø  Account Type ( Header – Just Words, Header, page header, Empty Header, Total … we cannot post ) ,  Revenue , Profit and Loss, Balance – Balance a/c , Cost – for Cost Accounts.

Ø  Locked in Journal Check box( these accounts can only be used, for exact automatic transactions ( posting invoice , ).

Ø  We can set whether a/c is for credit or debit ( by setting DB/CR proposal – Debit / credit , DB/CR requirement, Balance Control.

Ø  If we set , then we cannot use this a/c for other. Suppose set for debit, then can be used only as debit a/c.