The first reconciliation after converting to Inform has additional steps.
- Did your first day ofInform ERPoperations occur in the middle of the month? If so, there will be bank statement transactions in the current month that are not posted in the Inform system.
- Have opening balances been entered to represent the G/L account balances at the time of go-live? If so, these balances should represent all activity posted in the previous system to the go-live cutoff date, including outstanding checks and deposits.
- Did the most recent bank statement reconcile in the previous system?
- Were there outstanding checks (as of go-live date) that still had not cleared by the end of your first Inform month? If so, then the system cleared balance will be less than the bank statement balance.
- Were their outstanding deposits (as of go-live date) that still had not cleared by the end of your first Inform month? If so, the system cleared balance will be more than the bank statement balance.
Note on outstanding balances: Do not input these transactions into Inform. They are included in the opening balance at the go live date. A journal entry should be made to the bank and a cash clearing account so the bank can be reconciled. As these transactions clear the bank, a journal entry can be made from the cash clearing account to the bank.
- How are cash receipts batched in Inform? This is the most difficult aspect of the reconciliation because items do not always deposit to the bank in the same manner as they are posted to the system. If you operate a Point of Sale system, there will be additional cash receipts batches because POS follows a separate posting process than receipts on account.
See also