Clearing Foreign Currency Bank records

- Foreign currency bank records are also cleared using the Bank Management by Account program.  To clear a foreign currency record, the operator first selects the appropriate record and then presses the clear key.  At this point, the operator may specify the cleared date for the transaction and they may also specify the amount at which the transaction was cleared by the bank if it is different from the amount recorded on the system.  If the operator does modify the cleared amount that is recorded in the bank record, the system will make a journal entry for the amount of the change (the difference between the cleared hc amt recorded on the system and the amount entered by the operator).  The journal entry is made to the appropriate cash account and to the Foreign Currency Gain or Loss Account.

Voiding bank records - Bank records can be voided only by using one of the two methods described below.  Note:  The system will warn the user when they try to void a transaction that has already been cleared but it will allow the user to continue and it will make the appropriate journal entries regardless of whether the record has been cleared or not.

Accounts Payable checks or wire transfers can be voided using the Void an AP Check program.  If an accounts payable check or wire transfer is voided, the system reopens the invoices and amounts paid with the check or wire in the current accounting period.  The system also reverses any journal entry activity resulting from clearing the check (i.e. any foreign currency adjustments).  The amounts in the bank record are cleared and the status of the record is set to "V" to indicate that it has been voided.

Accounts receivable payment transactions can be voided using the A/R Check Inquiry program.  This program allows the user to void a specific customer payment and it reopens any invoices that were closed with the payment.  If an A/R check record is voided prior to it being deposited, there is no effect on the bank system (it was never included in a deposit and therefore never affected the bank system).  If a check record is voided after it has been deposited, the system creates a new bank record to show the change to the original deposit record and this new record references the original deposit number.  This method is used as there is no way to void an entire accounts receivable deposit.


Reconciling Bank Account Activity