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

Open

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

  Open

  

• 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:

1. Bank Statement

2. 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:

1. Verify Bank Code Balance. AGRIS > Bank > Bank Account > Bank Maintenance > Bank Code > Bank Balance Inquiry > Verify Bank Balance.

2. 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.

1. 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.

    

2. 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.

3. 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:

4. 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.

5. Keep this statement for auditors as you cannot recreate this report. It is a onetime report at point of balancing.

What if it doesn't match?

If you bank statement ending balance does not match AGRIS, then it goes back to some simple search items.

1. Run the Bank Reconciliation report with all dates open. There could be something with a future reconciliation date that you are excluding from report.

2. Do you have all transactions keyed into AGRIS? Check the RECONCILED TRANSACTIONS REPORT. For example, did you fail to key an interest charge? Was there a transfer of funds that was not keyed into the bank?

3. Do you have something doubled in AGRIS? Aging the RECONCILED TRANSACTION REPORT should match exactly to the bank statement listing of documents.

4. Voids – AGRIS voids come in pairs. Verify that there is a withdrawal and negative withdrawal for all voids. Or a deposit and negative deposit.

How to Find Specific Transactions

How to build a report that will let you find ANY dollar amount in the ledger, regardless of if it's a deposit or a withdrawal.

1. BNK > Report Manager > Bank Account Reports > Report Writer > Insert

2. Copy from the 1) Standard Report > Bank Register

3. Press OK to pass the Report type Screen. No changes here.

4. Edit the report title.

5. Select Line 01 on the "Define Calculation Fields" screen. Your Line 01 will be blank for title and Calculation.

6. Enter the 1^st field at option 3) Trx AmountCalculation of times (x)2^nd Field number of 99) Flat amount.

7. 2nd Field Number = 1.0Calculation Title = FIXED AMOUNTExtension Ability = 5) Use Absolute Value (note that this is key to this report)It makes the value positive no matter what. Decimal Positions = T for total Total Ability = 2 )Accumulate Totals

8. Select the following Sort fields.

9. No changes to the Range Selection Criteria.

10. No changes to Screen #1 of 2 for the Value Selectin Criteria:

11. Screen #2 of 2 of the Value Selection is important. This is where you key in the 1=Equal To option. And the dollar amount you are searching for.

12. No change to the Subtotal & Other Options Screen.

13. Answer No to all the questions on the Additional Options Screen. By not calculating the bank balance and the recon balance, the report prints faster.

14. Do not change any of the field printing positions. Save/Exit.

15. You know have a user-defined report where you can key in any dollar amount you are looking for and have it print on the report. Just go to the Value Selection Criteria, screen #2 of 2 and key in the dollar amount.

    The report searches all banks you are looking for and dates (if date range opened up) to find any deposit or withdrawal that matches that amount. It makes it much easier to find things that have been keyed and voided several times.

Register to Ledger to Bank Recon

Overview of Month End Processing for Ledger:

1. Data entry completed for SJI Period.

2. Set your earliest date allowed to the next month.

3. Everyone out of the ACR-ACP-BNK-GRN-PAY packages. Bank is unique in that the Bank Ledger Accounts will be updated by 5-different packages.

4. Select your SJI period. SJI > Select SJI Period > Select period to be default. All data keyed or edited between these date ranges will be pulled into the SJI and summarized into ledger entries by location code, transaction Code, and then source code.

    

    

    

   Each package pulls it's transactions into ledger and posts to the Bank ledger accounts. Each package interfaces to the BANK code assignment in Bank by keying in an account code of BANK.

5. Run the Create SJI process to create the SJI entries. SJI > Create System Entries > Select Payroll Sent reports to the spool. SJI > Create System Entries > Select Bank. Send reports to the spool. SJI > Create System Entries > Select Accounts Payable. Send reports to the spool. SJI > Create System Entries > Select Accounts Receivable. Send reports to the spool. SJI > Create System Entries > Select Commodity Accounting. Send reports to the spool. DO NOT DELETE until Fiscal Year is closed.

6. Select the Ledger Period. LDG > Select Ledger Period > Select Default Period.

7. Post the System Journal entries. LDG > Journal Entries > System Journal Entries. Answer YES to All Packages. (Note: AGRIS only allows you to transfer the entries once. So even if you answer yes to a package that has already posted, don't worry. It can only be pulled once. You will not double the ledger balances by just leaving all questions at yes.)

8. Run the Ledger trial Balance report. LDG > Reports Manager > Journal Entry Reports > Standard reports > Trial Balance Report. This is the report that you use to balance to the subsidiary Bank Accounts.

9. Run the Bank Register with Running Balance for SJI Period Ending Date. Everyone MUST be out of the BNK package when this report is run. Run after a "verify account balance" function has been run. BNK > Bank Account > Bank Maintenance > Select Bank > 6) Bank Balance Inquiry > Answer YES to "Re-Calculate Bank Balance" then run report BNK > Reports Manager > Bank Account Reports > 1) Print Standard Reports > Bank Register Trx Date Beginning and ending should be last day of the SJI period > Print

10. This report takes the Purge Balance and adds up all the transactions up to the first transaction you are printing for the filters. Then adds the rest of the transaction up to the end of the filter range.

11. The ending balance of the Bank Register should match the Trial Balance Report.

Bank Reconciliation Balancing to Ledger:

• The AGRIS Bank Reconciliation Report (printed from AGRIS) will NEVER balance to the month end register and thus the trial balance for month end.

• This report takes current bank balance in AGRIS plus outstanding checks (adds them back to the balance)less outstanding deposit (subtracts them from the balance)======================equals the ending Bank Statement received from the bank

• But you can do a manual bank recon yourself: Official Bank Statement less outstanding checks issues in AGRIS up to the ending Ledger period plus outstanding deposits issued in AGRIS up to the ending ledger period==========================AGRIS bank register ending balance.

• The key thing to note here is that we are NOT using the AGRIS Reconciliation report. We are using a spreadsheet to come back to the bank register.

• The second KEY thing to note is we are only looking at the open transactions that entered up to the end of the month. The transactions that would have flowed to the ledger in the SJI. You CANNOT be looking at transactions that have not hit the ledger yet because they are in the current month.

NOTES

~ Documentation Written by: Alisa Mueller and Sherelyn Roberson 06/2015