Contents
Process flow
The manual process electronically reads the bank statement and links this to both Accounts Receivable and Accounts Payable.
Deposits are keyed through Accounts Receivable. The batch number and or comments fields are held as a key for the bank reconciliation process and are dependent upon the type of deposits. Deposits come in essentially two forms.
- Those received through the mail and processed in Accounts Receivable and then sent for banking. The main key here is the batch number linking to the pre-numbered bank deposit book.
- Those received through the bank first and then processed through Accounts Receivable. The key in this case is generated by Iptor IP1 at the bank time of reading the bank statement. This number is then used as the batch number in Accounts Receivable.
The key required from the Accounts Receivable side to match to the bank transactions is made up of two parts.
- Group key – type of transactions (e.g. cheque number, deposit number, journal number etc)
- Matching key – batch number
Bank statement
During the manual process the bank statement is keyed in as a manual entry. The bank reconciliation report shows the reconciliation between the bank statement (coming from the bank) and the Accounts Receivable and Accounts Payable entries through the General Ledger bank account.
Deposits
You, as the customer need to liaise with your bank to determine where on your deposit slip this unique number can be pre-printed. This number will then be printed by the bank on your bank statement and used as a batch number in Accounts Receivable.
EFT and other direct deposits and payments
The electronic funds transfer and direct deposits appear on the bank statement. You the customer need to liaise with the third party to determine a method of identifying these payments and or deposits. These can be in the form of pre-printed deposit books or a predetermined notation on your bank statement. By use of control files the system can read this reference/description and decide on the appropriate accounting treatment.
Payments such as bank charges and lease payments can be charges direct to predetermined general ledger accounts. Whilst deposits will remain unmatched until they are processed through accounts receivable.
Configuration
The following items are required from the bank.
- File Structure
- Bank transactions for configuration
- Online banking facility for specific bank
Bank transactions provides a facility to analyse the bank transaction to put it into the right group for the bank. The bank statement report generates on the import data from the bank. This report has a number (key). The key can be used in the AR for cash allocation. The key is sent to the general ledger. The auto reconciliation then matches this key with the bank key.
The following control files needs to be setup for bank accounts and payment method configuration.
- TMSAP Accounts payable Control files for EFT payments
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BNK-BKCD Creditor bank code & bank account validation program
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BNK-PMTH Bank payment methods
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BNK-PPRG Bank payment programs for electronic banking
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- TMSAR Accounts receivable control files for automated banking
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BK-BKCD Bank code descriptions
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BK-DBKCD Default bank code
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BK-PAYT Payment/journal types
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BK-JNLI Banking journal interface definition
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The first three Control Files are normal accounts receivable files the last however BK-JNLI contains Accounts Receivable definition that is to be used in the interface to the Bank Reconciliation in the General Ledger Module. This will be run daily via ARO140. Each Payment type will be set up with a journal type, journal source, consolidation or detail by billing account by company code. For each Payment Type a General Ledger clearing account and a General Ledger bank account is given. A/R Bank code = Bank codes of the various banks that the company uses for its transactions. Enter ** for all bank codes or choose valid bank codes that are available from TMSAR/BK-BKCD. The offset to the clearing account comes from the month end Distribution journal which should CR Debtors and DR the clearing account.
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TMSBK Automatic Bank reconciliation control files
- TMSBK/***-BKAC Bank details
- TMSBK/***-BKKY Bank key source exception
- TMSBK/***-COMM Commission code
- TMSBK/***-PCDC PC document name
- TMSBK/***-TRCD Transaction codes
- TMSBK/***-TRCX Transaction extended definitions
