In today’s NetSuite guide, we’re going to discuss how to conduct the first bank or credit card reconciliation after trial balance imports.
Data Migration Approach for In-Transit Bank Transactions
Bank Rec Cutover
1. Load Last Trial Balance Journal for data migration – Make sure you have loaded the go live historical balance JE before starting this step.
2. Create a Journal to offset (‘reverse’) impact of the Un-Cleared Checks and Deposits in Transit to be entered in steps below. This can be accomplished in one summary journal; the amount equaling the sum of all un-cleared checks minus the sum of deposits in transit. Date should be day prior to cutover.
If Un-Cleared Checks Amount is greater than Deposit in Transit
DR Bank Account
CR – Clearing Account
If Deposit-in-Transit amount is greater than Un-Cleared Checks Amount
DR – Clearing Account
CR – Bank Account
3. Conduct a Bank Reconciliation (Match Bank Data) for the date prior to go-live.
4. In the ‘Add Charges’ section, enter each individual check (data migration checks) to the Clearing account. Date should equal day before cutover.
5. In the ‘Add Deposits’ section, enter each deposit to the Clearing Account. Date should equal day before cutover.
6. Clear the TB Import Transaction as well as the reverse entry created in Step 2.
7. For the newly added in-transit transactions added in steps 4 and 5:
- Leave transactions un-matched to be available for the first month’s reconciliation.
IMPORTANT: Leave the Data Migration checks and Deposits from Step 4 and Step 5 ‘unmatched’.
8. Complete the pre go-live reconciliation by doing a reconcile account statement transaction.
9. In the reconcile account statement, provide the following details:
- Statement Date – date prior to go
- Set the Ending Statement Balance = Trial Balance Bank Account amount as of day prior to go live + Un-Cleared Checks – Deposits in Transit amount. (This is also the bank statement balance)
10. The Difference field should be zero between the bank statement balance, the import balance and the reverse entry. The Un-Cleared Checks and Deposits are ready to be reconciled at a later date.
11. Save. That’s it. That’s how you conduct the first bank or credit card reconciliation after trial balance imports in NetSuite.
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