Dynamics GP Negative Amounts in the Bank Reconciliation Window
Posted Thursday, January 7th, 2010
Have you ever seen Negative Amounts in your Bank Reconciliation window? They would look something like this…
What may cause negative amounts in the Bank Reconciliation Window?
Most commonly the transaction (check, payment or cash recipt/deposit)  was voided in the “Bank Transactions Entry” window. (Transactions >> Financial >> Bank Transactions). Voiding transactions in the “Bank Transaction Entry” window causes Dynamics GP to reverse only out of the Bank Reconciliation module.  If the check or cash receipt/deposit “originated” or was processed through the Payables Management module or Receivables Management module voiding through the Bank Transactions Entry window leaves the transaction in the Payables Management or Receivables Management module.
To illustrate the flow of information below is a diagram for Payables. Receivable’s flow works in a similar manner.
Transactions such as checks processed in the Payables Management Module flow to the Bank Reconciliation module with corresponding general ledger transactions flowing to the General Ledger module.
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Consequently, if you are seeing negatives in the Bank Reconciliation window you should check to see if the transaction is also in the originating module. Â
Void  the transaction from either the Payables Management module in the Transactions >> Purchasing >> Void Historical Transactions or from the Receivables Management module Transaction >> Sales >> Posted Transactions.
Note:  If you Voided a trasaction in the Bank Transaction Entry window and also Voided in the Payables or Receivables Management module then GL transactions were created. Track the transactions to the General Ledger.  Make any necessary adjustments by journal entry in the General Ledger to correct for any double booking.
Best practice for Voiding is to void transactions through the originating module.Â
Dynamics GP does alert a user if they are attempting to void a transaction that was processed in another module by giving the below message.
Tags: Dynamics GP bank reconciliation, negative amounts in bank reconciliation
Posted in AP, Banking, Dynamics GP
Amy Walsh
Amy Walsh is a consultant with I.B.I.S., Inc. and Microsoft Certified Business Management Solutions Professional.  She is a graduate of Mercer University with a concentration in Accounting and Finance. She brings over 15 years experience working with domestic and international enterprises ranging from start-up to established global B2B companies.  Â
With her background in accounting / finance alongside working with Microsoft Dynamics GP as both an end user and consultant allows her articulate connectivity into the World of Microsoft Dynamics GP. Her goal is to help businesses succeed in their endeavors through process streamlining, education and finding the right ERP solution.Â
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Nice job Amy! I just wanted to add that some 3rd party solutions can also generate negatives in the bank rec window.
Mark
[...] Amounts in Bank Rec Window Amy Walsh has coverage of negative amounts in Bank Reconciliation over at DynamicsCare. Nice Job Amy! Published: Thursday, January 07, 2010, 02:00 [...]
I still think it’s odd behavior by Great Plains to warn you if you are about to Void a check that has already been marked as cleared, so long as that check was entered as a Bank Transaction, but gives you no warning if that check was entered via AP. I understand GP “puts” a negative amount in the Bank Rec module, but how is that really helpful once the check has already been voided, since you can’t “un-void” a check? I really am trying to understand the reasoning behind this, so maybe I am missing something.
Enjoy your blog!