Reconciling Cash Management to the General Ledger

Steps

Compare the GL Trial Balance report to the CM Transaction Detail report. 

 TIP: It is recommended that Cash Management (CM) is reconciled to the General Ledger (GL) monthly. 

Note: It is not recommended to reconcile using the CM Account Statement report to the GL Trial Balance, as this report was not designed to reconcile to other reports and may not always match the Trial Balance. It is recommended that the CM Transactions Report be used to reconcile to the GL.

To reconcile CM to GL please follow the steps below:

1)      Run the CM Transactions Report and enter in the following information:

CM Account: The account you want to reconcile.

Beginning Month: The month you want to reconcile.

Ending Month: The same as the Beginning Month.

Sort By: Enter T (Trans)

2)      Run the GL Trial Balance Report and enter in the following information:

Beginning Account: The GL Account for the CM Account you want to reconcile.

Detail: (D).

Beginning Month: The month you want to reconcile.

Ending Month: The same as the Beginning Month. 

CM Trans & GL Trial Balance.PNG

3)      Navigate to the last page of these reports. The Total Amount on the CM Transactions Report should match the sum of the Total Debits and Credits on the GL Trial Balance. It should also match the difference between the Beginning and Ending Balance of this Account.

Although these amounts should always match, they may be out of balance. Below are steps that you can take to locate where the problem lies.

Locating the Problem

• Look for any transactions in the GL Trial Balance Report that have a Source that is not AP, AR, CM or PR. These transactions will not show up in CM. They should be undone or reversed, and then posted to the correct account.

NOTE: If a GL Journal Entry was done and it should hit the CM Account, then you will need to reverse this entry and recreate it in CM by using a CM Outstanding Entry.

• Run these reports for the individual sub-ledgers (AP, AR, CM, PR). You may be able to see which sub-ledger the variance occurs in.
• Compare these two reports and look at the transactions one at a time. Locate the transactions that were only posted to CM or the GL.

Solution

• If a posting was done to the wrong GL Account, the transaction should be undone or offset in the same module that it was created in. If a transaction was posted to the GL but not CM, ensure that it was not posted to the wrong CM Account by mistake.
• If a transaction appears in GL, but not CM and it should be, the CM interface flag may have been turned off if the Module’s Company Parameters. If it was, you will need to undo the transaction or offset it with the flag off. Then recreate it with the flag on.
• If a transaction was posted in CM but not the GL, the GL interface flag in the CM Company Parameters may have been turned off. This transaction will need to be deleted with the GL flag turned off and Recreated with the flag turned on. Alternatively, a GL Journal Transaction Entry could be done to realign the GL.