The Bank Adjustment feature is available in the Bank Center allowing you to post pre-defined journal entries specific to bank account activity, including service charges, interest earned, and adjustments to a bank reconciliation.
Use this feature if adjustment notices are received separately from the monthly bank statement or if you are not using the bank reconciliation feature of AMS360. [* The ability to post service charges and interest earned is also available in Bank Reconciliation.]
Accessing Bank Adjustment
- In the Bank Center, open the bank account to be adjusted.
- On the Actions menu, click Bank Adjustment. The bank adjustments form opens.
Bank Adjustment Sections
General Information
Enter the following information in the General Information section.
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Business Unit/Division |
The Division defaults from the division assigned to the bank account in Bank Setup. |
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Journal Date |
Defaults to the current system date, but can be changed. You may wish to post an adjustment journal entry to correspond to the date posted by the bank. You can Backdate the entry within the current fiscal period. Backdating to a Closed Period requires appropriate security. |
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Memo |
Enter the reason for the journal entry. The default is Bank Adjustment. |
Service Charge
Enter the following information in the Service Change section.
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GL# |
Select the appropriate GL expense account number from the list. The list has pre-filled with expense detail accounts in the 60000 number range. |
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Charge Amount |
Type the total service charge amount. As soon as you navigate out of the Amount field, the total amount of the Service Charge and the amount Allocated ($0.00) appear on the service charge title bar. |
Business Unit Allocation
To split the service change across multiple business units:
- Click New.
- Select the Branch, Department, Group combination (the Division unit associated with this bank account is View Only and cannot be changed):
- Branch: A list of the Branches set up for your agency and associated with this division.
- Dept: A list of the Departments set up for your agency and associated with this division and the selected branch.
- Group: A list of the Groups set up for your agency and associated with this division, branch, and department.
- The amount pre-fills based on the Charge Amount you entered. Change the amount to the allocation for the first business unit combination.
- Click Add. The Allocation amount on the section header updates with the allocated amount.
- Click New and repeat steps 1 through 3, until all of the service charge has been allocated.
Interest Earned
Enter the following information in the Interest Earned section.
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GL# |
Select the appropriate GL income account number from the list. The list fills with income detail accounts in the 40000000 number range and other income accounts in the 70000000 range. |
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Charge Amount |
Type the total interest earned amount. As soon as you navigate out of the Amount field, the total amount of the Interest Earned and the Amount allocated ($0.00) appear on the Interest Earned section title bar. |
Business Unit Allocation
To split the interest earned across multiple business units:
- Click New.
- Select the Branch, Department, Group combination (the Division unit associated with this bank account is View Only and cannot be changed):
- Branch: A list of the Branches set up for your agency and associated with this division.
- Dept: A list of the Departments set up for your agency and associated with this division and the selected branch.
- Group: A list of the Groups set up for your agency and associated with this division, branch, and department.
- The amount pre-fills based on the Charge Amount you entered. Change the amount to the allocation for the first business unit combination.
- Click Add. The Allocation amount on the section header updates with the allocated amount.
- Click New and repeat steps 1 through 3, until all of the service charge has been allocated.
Bank Reconciliation Adjustments
Occasionally, while reconciling a bank account, a bank posting error is uncovered. The bank is notified and agrees to correct the error so it will appear on the next bank statement. Rather than post an invalid entry to a customer receivable account or another general ledger account, use the Bank Reconciliation Adjustment journal entry. Then, when the correction appears on the next bank statement, enter another bank reconciliation adjustment entry, clearing the first.
- Expand the Bank Reconciliation Adjustment section of the Bank Adjustments form.
- The GL # posts to the #11190000, Bank Reconciliation Adjustments account and cannot be changed. The offset is automatically posted to the bank account.
- Type the amount of the error.
- Be sure to type in an adequate Description so you can match this entry with the bank's correcting entry on next month's bank statement.
- When next month's bank statement arrives, use the Bank Adjustment feature to post the bank's correcting entry, offsetting and clearing the original entry posted on last month's bank statement.
This account should not be used as a "dump" account for unidentified bank reconciliation problems. If the balance is small and becomes long-standing, consider adjusting the balance to an expense account, such as Bad Debts.
[* As of Version 23R2, the "Interest Earned" and "Service Charge" sections no long appear on the bank reconciliation statement. Instead, use the New Journal Entry button, located in the bank reconciliation statement, to enter any adjustments.]