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Dynamics SL: Cash Manager vs. Bank Reconciliation Module


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 written by Jerome Butler

Are you currently doing your bank reconciliations in either Excel or on paper?  If yes, then you should consider doing your recs within Dynamics SL.  The 2 modules that handle this requirement, shown below, are the Bank Reconciliation Module and the Cash Manager Module.

How do I choose between the two modules? 

Both modules allow:

  1. Downloading of bank cleared transactions and importing to clear related system transactions.
  2. Bank reconciliation recap reports.
  3. Both are part of the financial series of modules
  4. Both require a matching of external transactions to be cleared. If your bank statement transactions are summarized, then both modules will have problems reconciling the transactions.

 

What are the differences between the two modules?

Cash Manager Module:

  1. Clearing of a range of checks or deposits. This works well for organizations with a lot of transactions per reconciliation period.  You are not limited to “Clear All” or manually clearing individual transactions.
  2. Viewing the transactions that are Cleared, Outstanding or Both
  3. Cash flow Forecasting
  4. Float Analysis
  5. Daily Cash Balance reporting
  6. Does your organization have someone whose job it is to keep track of cash, like a CFO or Controller. Then this could be their module.
  7. Date driven transactions. If a transaction has a transaction date outside of period to post, the transaction will not show up until the transaction date for reconciliations is reached.  This is a very important requirement in Cash Manager.  Example:  $100 check with Period to Post 12-2018 but Check Date 01/01/2019.  When you prepare your December bank reconciliation, this transaction will not show up because the date falls outside of the December reconciliation period.  You must make sure all your transaction dates make sense.  In the previous example, the period to post should have been 01-2019 instead of 12-2018.  This transaction will cause an out of balance condition in your reconciliation because it will reduce the G/L balance as of period 12-2018, based on the period to post.  It will, however, not be a part of the checks to be cleared until the next reconciliation period.
  8. Three-way reconciliation between:
    1. Cash Manager Balance – Checkbook
    2. Bank Statement Balance
    3. General Ledger Balance

 

Bank Reconciliation Module:

  1. Simpler for organizations with smaller numbers of transactions.
  2. Screen is set up just like your bank statement.
  3. Just for Bank Recs. No cash flow capabilities.
  4. Smaller number of transactions makes it easier to reconcile.
  5. Period driven transactions. If a transaction has a transaction date outside of period to post, the transaction will still show up to be reconciled.
  6. Two-way reconciliation between:
    1. Bank Statement Balance
    2. General Ledger Balance

 

Questions you should ask yourself are:

  1. Am I in a business in which regulations force me to perform by-transaction reconciliation?
  2. Can my bank produce a BAI2 format or some .csv file that makes sense for me to download?
  3. If the bank won't help, do I have a small volume of monthly bank transactions so doing it by hand is not so crazy?
  4. Are there any business related procedures that would prevent a meaningful by-transaction reconciliation? Like branch office consolidating deposits from many AR transactions, or a non-SL POS software, or a voucher delay issue?
  5. How much time do I spend doing my bank reconciliation?

Further questions about bank reconciliations in Dynamics SL? Contact us at [email protected]

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