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Entering Bank Adjustments

The Bank Adjustments 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 the 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.

    ClosedAccessing Bank Adjustments

  1. Open the desired bank in the Bank Center.

  2. Click Actions > Bank Adjustments. The bank adjustments form opens with all sections, except the Bank Reconciliation Adjustment section, expanded.

 

    ClosedBank Adjustment Sections

    ClosedGeneral Information

Group/Field

What is this?

Business Unit/Division

The Division defaults from the division assigned to the bank account in Bank Setup.

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.

Memo

Enter the reason for the journal entry. The default is Bank Adjustment.

 

    ClosedService Charge

  1. Select the appropriate GL expense account number from the list. The list has pre-filled with expense detail accounts in the 60000 number range.

  2. Enter the total service charge amount.

  3. As soon as you tab 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.

  4. Click New on the Department Allocation sub-section.

    ClosedDepartment Allocation

  1. Clicking New on the Department Allocation sub-section opens the data entry fields. The division pre-fills with the division assigned to the bank and the charge amount pre-fills with the total amount of the service charge.

  2. If the amount needs to be split across multiple agency departments, change the amount to the allocation for the first department and select the appropriate department from the list. Click Add. The Allocated amount on the section header updates with the allocated amount.

  3. Allocate the remaining amount to other departments, as necessary, until the Total and Allocated amounts agree.

 

    ClosedInterest Earned

  1. Select the appropriate GL income account number from the list. The list fills with income detail accounts in the 40000 number range and other income accounts in the 70000 range.

  1. Enter the total interest earned amount.

  2. As soon as you tab 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.

  3. ClickNewon the Department Allocation sub-section.

    ClosedDepartment Allocation

  1. Clicking New on the Department Allocation sub-section opens the data entry fields. The division pre-fills with the division assigned to the bank and the Charge Amount pre-fills with the total amount of the interest earned.

  2. If the amount needs to be split across multiple agency departments, change the amount to the allocation for the first department and select the department from the list. Click Add. The Allocated amount on the section header updates with the allocated amount.

  1. Allocate the remaining amount to other departments, as necessary, until the Total and Allocated amounts agree.

 

    ClosedBank 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.

  1. Expand the Bank Reconciliation Adjustment section of the Bank Adjustments form.

  2. The GL # posts to the #11190, Bank Reconciliation Adjustments account and cannot be changed. The offset is automatically posted to the bank account.

  3. Key in the Amount of the error.

  4. Be sure to put in an adequate Description so you can match this entry with the bank's correcting entry on next month's bank statement.

  5. 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.


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