1 Objectives
2 Daily Cash Drawer Transaction Tracking
3 Deposit Bank Daily Process
4 Withdrawal Bank Daily Process
5 Monthly Recon Process
6 How to Find Specific Transactions
7 Register to Ledger to Bank Recon
- 7.1 Overview of Month End Processing for Ledger:
- 7.2 Bank Reconciliation Balancing to Ledger:
8 NOTES

Objectives

This document will take you through the general procedures of the bank; going over how it is programmed to be used. We will cover a general data overflow of Cash Drawer Banks flowing into Brick-n-Mortar Banks to help make reconciliation of cash drawers and bank statement easier. We will finish up

with delving into how to balance the bank registers to the ledger and to the bank statements.

Daily Cash Drawer Transaction Tracking

It is HIGHLY recommended that you define a Daily Cash Receipts bank in AGRIS.
Any check you receive will be posted to this account.
Each location that takes a deposit to a bank should have their own Cash Receipts bank code in AGRIS.

Why?You will take in many checks through the day in your daily AR business and daily grain business. When you deposit these to your brick-n-mortar bank (the one that provides you with a bank statement at the end of the month) you do not want to try and figure out which of the many checks you received for the month makes up the $1,359.62 deposit posted to the bank statement on the 5^th of the month. There is no way to successfully manage this and keep your sanity.

Deposit Bank Daily Process

So how do we manage this?

We setup up each location with their own Daily Cash Receipt Bank C1, C2, C3, for an example.
Each location code can have a default bank code tied to their location via: ACR > Setup > System Integration
Each bank code will have a deposit transaction to match to each AR Receipt or Grain Sales Settlement.
As you key in the daily receipts, you can take advantage of the deposit number that is meant to group your deposits to a deposit slip. You can set this to default today's date in YYMMDD format automatically under Bnk > Setup > General Information.
At the end of the day, you prepare the nightly deposit. Even if you don't take a deposit, physically, to the bank every day, still do a deposit for each day. It keeps things consistent and makes balancing easier.

Run the Bank Deposit Register to help aid in creating your deposit. BNK > Report Manager > Standard > Bank Deposit Register. This report, subtotaled by the Deposit Number, should equal my nightly deposit. I could use this to list my checks for the deposit slip.
Then you transfer ONE lump sum amount (nightly deposit) out of the Daily Cash receipt bank and move it into your Brick-n-Mortar bank in a single amount. Use the same date as the daily deposits. Payments on the 11^th match transfer to brick-n-mortar bank on 11^th.
This single deposit amount into that bank code will match the bank statements single deposit amount of $453,422.15, thus making reconciliation at month end much easier.
Now as a double check, your standard ACR A/R PAYMENT RECEIVED REPORT should also match the bank deposit amount.
If you do not have enough funds to deposit to the bank. For example, there was supposed to be $5 more and that dollar amount it missing then you key a manual transaction to cash long/short. This amount makes up the difference between the physical deposit and what is actually keyed into AGRIS, when the reports don't match up.

The last step is to reconcile the cash drawer back to you beginning amount. BNK > Bank Maintenance > Select Bank Code > Reconcile Transactions > Select each line to place an X by the line. When you finish the bank balance will be back to zero or whatever cash balance you are carrying.

Withdrawal Bank Daily Process

The withdrawal process in the bank is easier than dealing with the deposits and quite often is NOT looked at until the end of the month when it is time to reconcile.

Cash flows out of the bank code in the form of A/P check, payroll checks, and grain settlements. Each Check hits a bank code as a withdrawal.
It is good accounting process to have this outgoing of funds monitored by at least two people. The person issuing the checks and one other person reviewing the checks after they are issued.
At the end of day, run a Bank Register of each bank for another responsible party to review. BNK > Report Manager > Standard reports > Bank Register for that accounting date. This will give the person reviewing the checks issued a chance to see the names and amounts on the checks.
Look for missing check numbers.
Look for name descriptions you don't recognize.
Look at the withdrawal amounts.
Any void should be explained

Monthly Recon Process

Balancing Bank Subsidiary to Official Bank Statement

Rule: The Bank Reconciliation Report is to match what you have in your bank to the bank statement. It is NOT, NOT, NOT to match what you have in the ledger.

Required Documentation:

Bank Statement
Bank Detail in AGRIS via the Bank Reconciliation Report

AGRIS Reconciliation Report Calculation:

AGRIS Current Bank Balance
Less Active deposits
Plus active withdrawals
Reconciled bank balance (which is the balance on the Bank Statement)

AGRIS Steps to Reconcile:

Verify Bank Code Balance. AGRIS > Bank > Bank Account > Bank Maintenance > Bank Code > Bank Balance Inquiry > Verify Bank Balance.
Key in any fees or transactions charges the bank has charged you as a manual withdrawal or deposit, coded to expense account such as Bank Fees.

Reconcile Transactions using the bank statement. Bank Maintenance > Bank Code > Reconcile Transactions > Place an X by each transaction that is on the bank statement, marking it cleared. Always use a recon date that matches the ending date of the statement.
If you reconcile a transaction you did not mean to, then you can edit that transaction under BNK > Bank Maintenance > Select Bank > View/Edit transactions to make it ACTIVE again.
Run the bank standard report, CANCELLED TRANSACTION REGISTER, to verify the deposit and withdrawal totals in AGRIS match the totals on the bank statement. Use the DATE RECONCILED to limit transactions.
Compare these withdrawal and deposit totals to the statement. These should match and prove out that everything the bank knows about for the month is keyed into AGRIS and reconciled. Example statement to show totals:
Run the Bank Reconciliation report –which uses the above calculation. This report will print all ACTIVE documents and give an ending balance to match the bank statement. The ending Reconcile balance should match your bank statement balance.
Keep this statement for auditors as you cannot recreate this report. It is a onetime report at point of balancing.

AGRIS Bank Procedures