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TREASURY MANAGEMENT & AP RECONCILIATION

KASBO Conference November 2008

Presenters:

Vicki Rogers and Lisa Mangum Jefferson County Public Schools

AGENDA
Introductions Organization Chart Current use of Treasury Management Future uses of Treasury Management Bank Reconciliation Process
Initial set up What to do before you start Step-by-step instructions What to do if you dont balance Tips and tricks throughout

Electronic Funds Transfer Evaluation

Questions are welcome throughout the presentation.
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ORGANIZATION CHART
Accounting Services
1 Director 1 Specialist 2 Coordinators (Accounting & Accounts Payable) 1 Data Management Research Technician 1 Bond Technician 3 Revenue Clerks 10 Accounts Payable Clerks
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USING TREASURY MANAGEMENT

Participates current uses Participates future plans On Positive Pay Problems with Positive Pay Bank currently using Presenters current uses Presenters future plans Presenters Positive Pay experience

3 STEP INITIAL SET-UP PROCESS

BANK CODE FILE SETUP Step 1: Access the Bank Code F/M table through the Treasury Management Module

INITIAL SET-UP PORCESS STEP 1

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Step 2: Add the General Information and the Routing Transit Number (RTN) then click the Accounts button.

INITIAL SET-UP PROCESS STEP 2

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Step 3: Enter the Bank Account Number. Check the box to include AP Check Activity then enter your cash account and click the green check mark. If using the same account for Payroll, then check the box to include PR Check Activity. If you use anothe r account for Payroll, then add a record for that account and only check the Include PR Check Activity. Ensure that you have entered the correct org/object for your cash account with payroll.

123 BANK NAME

INITIAL SET-UP PROCESS STEP 3

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What to do before starting the Bank Reconciliation process for the VERY FIRST TIME

Do the 3 step set-up process (See pages 6-8) Clear all old Deposits and Adjustments
This will include every deposit and adjustment since checking has been on MUNIS
(See Clear Adjustments and Deposits) p.27

We used the last day of the preceding month as the clear date for old deposits and adjustments
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What to do EACH MONTH before starting the Bank Reconciliation process

Clear all voided checks prior to the end of month (See
Manually Clear Checks) p.24

On last day of month print Void Report

By running Void Report in MUNIS (See Void Report) p.14
We run our report by cash account range in order to capture any old outstanding checks -OR-

By running a Void Report in Crystal

This report captures all voids for all cash accounts

Void Report
Doesnt include amounts of checks written and voided in same month. It will include amounts of checks that were prior months outstanding checks. When completed, the uncleared column should be zero.
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Follow these steps to the Void Report and Check Register. Click on the A/P RECON.

123 BANK NAME 12345678 GENERAL FUND

STEPS TO VOID REPORT AND CHECK REGISTER - 1

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Click on REPORTS.

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STEPS TO VOID REPORT AND CHECK REGISTER - 2

Click on REPORT OPTIONS.

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STEPS TO VOID REPORT AND CHECK REGISTER - 3

Click on Cash Account Range and check Void Checks and all items in Include. Use the default for the Check Range. This will bring up all Void Checks. Clear all voids. Before running check register rerun void report to make sure Uncleared column is zero.

VOID REPORT
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What to do EACH MONTH before starting the Bank Reconciliation process--continued

On last day of month-AFTER Accounts Payable has posted final cash disbursements for the month--print the Check Register including Voids
(See Check Register) p.16

We run the Check Register in MUNIS and convert to an Excel spreadsheet

Run Trial Balance for 10-6101 after month has closed.

Debits should be your voids for source code APP Credits should be checks written for source code APP Compare TB totals to balanced Check Register
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To get to this screen, follow screens on pages 11 through 13 -- A/P RECON, REPORTS, then REPORT OPTIONS. Click Check Date Range and check Void Checks, Uncleared Checks and all items in Include. Enter the beginning and ending date of reconciling month. Click GREEN CHECK MARK. The Check Register will come up. We convert this into an Excel spreadsheet. Compare the totals to the Trial Balance.

CHECK REGISTER
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CHECK FILE FROM BANK

Compare the Check File to the actual Bank Statement. Should equal.
With Positive Pay, the corrections are made to the bank file but not the bank statement.
Encoding errors in check amounts Encoding errors in check numbers

Import Bank File into the MUNIS system.

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Each month you will need to ADD A NEW DATA RECORD. Enter the Bank Code, Bank Account, Reconciliation Date Range (first day and last day of reconciling month) and Bank Balance (from the bank statement). Use dropdown menus. Check for accuracy. Click GREEN CHECK MARK.

ADD A NEW DATA RECORD

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This is a sample of the screen after clicking on the green check mark after adding the new data record. The figures are factious, but these are the fields that will have figures. Click on A/P RECON button on left side. NOTE: Read the bottom of the screen for helpful information.

123 BANK NAME 123456789 GENERAL FUND

Read for more information

A/P RECON
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This is the screen after clicking on the A/P RECON button. All of these lines will default. Click the DEFINE button. NOTE: Read the bottom of the screen for helpful information. Also note that this screen is on top of another screen.

123456789

Read for more information

DEFINE AFTER A/P RECON

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When using Bank File

123456789

CLEAR CHECKS USING BANK FILE

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This is the screen after the Define button has been clicked. Enter the Batch Number. (Design the batch number to fit your needs. We designed our numbers so that we could easily identify them by month and year. EX: 53106) Be careful when entering a new Batch # because you cannot change the number later if you made an error. Enter Clear Date (last date of reconciling month). Cash Account defaults. Check Bank Table. The Bank table line will not change automatically, you have to change the month and/or year if needed. It will default to the previous months info. Insert the current year and month. Click GREEN CHECK MARK.

After Clicking on Green Check Mark

Pop-Up screen Continue with this record set containing XXXXX checks?
This number should agree with the number of cleared checks on the bank statement. Differences could be bank encoding errors
Check numbers Check amounts Could also be paid stop payments. (Our bank clears all checks first, then makes corrections.)

Click Yes if correct Click OUTPUT/POST button

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REMINDER!!
IF THE HOURGLASS CONTINUES TO TURN, MINIMIZE THE CURRENT SCREEN AND CLOSE THE SCREEN BEHIND IT. THEN MAXIMIZE THE SCREEN YOU WANT.

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Use Check Range when manually clearing checks. Enter check number in both fields unless all checks are sequential, then enter first number and last number. All other information is entered the same way as for clearing using Bank File. Click GREEN CHECK MARK. Note at bottom of screen will indicate # of checks found. Enter next check number and green check mark until all checks are entered. This will save paper when you print. Then click Output/Post. Note: This is the only way to clear EFTs. The bank does not send a file of EFTs.

When clearing manually

123456789

To manually clear checks not in bank file correctly or missing from the bank file but on the bank statement.

MANUALLY CLEAR CHECKS

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Pop-up screen Do you wish to post? Click YES.

123456789

POST CHECK RECONCILIATION?

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Pop-up screen Print to File? We dont print the file if using the Bank File because it would be too big. We spool to file and then never print. You could print if you want. We do print the file when we Manually Clear.

123456789

PRINT TO FILE?
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This is the screen you want. Click ADJ/DEP RECON button.

123 BANK NAME 123456789 GENERAL FUND

CLEAR ADJUSTMENTS AND DEPOSITS

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Click on CREATE ITEMS. You must click create. On almost all other screens you can Define to achieve your goal-NOT HERE! Then click on GREEN CHECK MARK.

CREATE ITEMS
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Pop-up box Reviewing XXXX records for 10-6101-Continue? Click YES.

123 BANK NAME 123456789 GENERAL FUND

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Pop-up box XXXX records created. Processing complete Click Continue.

123 BANK NAME 123456789 GENERAL FUND

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Click on CLEAR ITEMS. Click on GREEN CHECK MARK.

CLEAR ITEMS
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Bank Code and Bank Account should default. TAB through to the Clear Date and enter the LAST day of the month you are reconciling. Date Range Enter FIRST day of month and LAST day of reconciling month. Item Type has a drop-down menu Adjustments, Deposits or Blank which brings up both. Status has drop-down menu Cleared or Outstanding. Choose Outstanding. Click GREEN CHECK MARK.

123 BANK NAME 123456789 GENERAL FUND

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Adjustment/Deposit Recon
Adjustments equal wires Other debits and credits
Journal Entries
Correcting errors Bank charges

We leave the Item blank so both Adjustments and Deposits come up on same page.
Adjustments are at the top of page Deposits at the bottom

You can do one at a time.

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Verify deposits and adjustments from this screen. You can CLEAR ALL. We use the TOGGLE CLRD. We verify each item individually against the bank statement. If you TOGGLE CLRD in error, just TOGGLE CLRD again and it will unclear. You can also use the arrow keys to maneuver through the file. When finished, click the GREEN CHECK MARK.

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Pop-up screen Accept changes and exit screen? Click YES.

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You may get the continuous HOUR GLASS again. Minimize current screen, close screen in back and maximize the screen you need. Click the RECALCULATE button. Pop-up box appears Recalculate will overwrite Click YES.
Note: Anytime someone makes an entry to 6101 in a prior month, the G.L. Book Ledger will not change on the bank reconciliation Treasury Management until the RECALCULATE button is clicked.

123 BANK NAME 123456789 GENERAL FUND

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At this point, you have cleared all checks, deposits and adjustments for the month. The RECONCILIATION DIFFERENCE should be zero!!! If you are not
on Positive Pay, your difference should be your encoding errors that have not been corrected and bank corrections from prior months encoding errors. You can explain your differences in the Notes folder.

123 BANK NAME 123456789 GENERAL FUND

BALANCED BANK RECONCILIATION

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What to do if you DONT balance?

Notice that there is an open file next to:
AP Checks Deposits Adjustments Outstanding AP Checks

If you click on the open file it will show you every item that makes up that total. Compare these items to the bank statement and your list of outstanding checks. Other possible problems:
Improper voids (always void invoice thats attached to check) J/E Effective Date and Year/Period not matching Encoding errors (check numbers and check amounts) Bank corrections

Other help:
Run Utilities Compare Trial Balance to known items (wires, J/E, APP, etc.) and locate the differences (INI, J/E with code error, etc.).
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