The Banking system contains bank transaction header and line files (SMTRNH/SMTRNL) that contain the actual bank transactions. You can edit and delete bank transaction header and lines and use this information to reconcile to the bank statement. The indirect or detail transaction header and line files (SMITRH/SMITRL) hold the cash and check transactions that represent cash coming into the bank from other modules in FACTS. These transactions are used to make up the deposit and non-bank transactions in the bank transaction file.
There are 8 types of transactions in the bank transaction file: checks from the AP and PR modules, returned checks from the AR module, deposits, miscellaneous bank transactions, non-bank transactions, transfer in, transfer out and adjustments.
When you create a bank transfer, the system creates the two transfer type records.
The AP check register, PR check register and returned check register all create transactions directly into the bank transaction files. The bank’s balance and the bank GL# is updated. The Cash Receipts Register, AR Sales Register and SO Daily Sales Register write records into the indirect transaction header file for the total of each cash type terms code that is set to use the bank’s GL. Check type terms codes write to the indirect transaction line file. If the bank for these transactions does not use the deposit system, the registers will automatically create a deposit record in the bank transaction files that is made up of all of the indirect transactions that were created by the register. The bank transaction is set to a status of complete. The system updates the bank’s balance and the bank GL#. If the bank does use the deposit system, the system does not update the registers and updates the bank clearing GL# instead of the bank GL#. You can then use the Bank Transaction Entry program to create a bank deposit composed of the open indirect transactions. Optionally, you can set a bank that uses the deposit system to have the registers automatically create the deposit record. This creates one deposit for all of the indirect transactions but is not updated. You can edit or delete this deposit.
Bank Transaction Entry (SME510) allows entry of bank transfers, miscellaneous bank transactions and if the bank uses the deposit system, deposits and non-bank transactions (both of which require selecting indirect transactions). The system maintains an audit file each time you add, edit or delete transactions in Bank Transaction Entry and Bank Reconciliation Entry program.
Bank transactions are updated by running the Bank Transaction Register (SMR510). The Bank Transaction Register prints a register listing of all transactions to be posted and a GL distribution. Then, it updates the bank’s balance and the bank GL# and change the status of each bank transaction to complete. Transactions can also be updated immediately from within the Bank Reconciliation program. This updates the bank balance and the GL but not mark the transaction complete. The register prints those transactions also so you have a hardcopy of what was updated.
Before a transaction is updated, it can be edited or deleted. Once a transaction is updated either from the Update function in Bank Reconciliation or through the Transaction register, changes or deletions may only be done by making adjustments. Each adjustment has its own data, status, GL distribution, etc. You can change the amount of the transaction and the bank reconciliation processing creates an adjustment record tied to the original for the difference in the amount. This adjustment record updates through the next transaction register. When adjustments exist, the original transaction is presented as the net amount after the adjustments have been applied.
Transactions and adjustments can have a status of: Open, Updated but not run through the register, or Complete (i.e. run through the register).
Use Bank Reconciliation Entry to reconcile the bank transactions to the bank statement. You can quickly set the status of any updated transaction to "cleared". Once the transactions balance, you can select the Reconcile function to change the reconciled flag of all transactions to "Y" and set the reconciled date. The last reconciled balance and date of last reconciliation in the bank file are updated.
Each bank transaction has a cleared status and reconciled status relative to the bank reconciliation function. All sequence numbers for a transaction (i.e. the transaction and all adjustments to it) also have the same cleared and reconciled status.
During Bank Reconciliation, you can enter new transactions, edit open transactions or make adjustments to transactions that are already updated or complete. Use the Update function to update an open transaction or adjustment immediately. This causes the bank balance and GL updates to take place and the transaction status to be changed to "updated". The system also maintains a GL detail file to hold the GL information of each transaction and adjustment that is updated in the bank reconciliation. This record is used by the register to document what GL postings actually occurred and to fill in the remaining detail of register number, etc., in the GL transactions. The Transaction Register has two sections, one for open transactions and one for updated transactions. When the register is updated, the status changes to Complete for all transactions appearing on the register.