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v.5 Accounts

Payable/Check

Express/Bank Rec:

How They Work

Together

Presented by:

Mark Fisher, Shelby Consultant

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Objective

To see how theses three financial modules interplay to track checks and deposits.

What You Will Learn in This Session

• The importance of matching dates between subledgers and the final entries.

• How to take advantage of Check Express as a companion module to Bank Reconciliation.

• When to use Accounts Payable and when Check Express may be the better choice.

• Guidelines for voiding an entry to achieve the best results in all places.

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Matching Dates Between Subledgers and Final

Entries

Accounts Payable

Accounts Payable has three date fields: invoice date, due date, and check date. As in all sub-

ledger modules, you are prompted to enter two additional dates, Posting Period and Entry

Date, when saving or updating entries.

For both accrual and cash bases, it is important that the Check Date corresponds to the fiscal

period selected when posting invoice payments. If the dates are not consistent, Accounts

Payable will not balance with General Ledger and Bank Reconciliation.

• When an invoice is processed, the dates are entered as shown on the example. The

fiscal year, period and date of entry are all consistent.

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• The report processed in Accounts Payable verifies the information being posted to the

General Ledger.

Bank Reconciliation

• When the invoice is paid, the Check Date is the date processed to Bank Reconciliation.

• The Check Date must be within the same period used for data entry and posting to

General Ledger.

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Since the dates processed are all within the same period, it would not be a problem to

verify balances between General Ledger, Accounts Payable and Bank Reconciliation.

Check Express

• Check Express only has one date field, the transaction date.

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• As in all sub-ledger modules, you are prompted to enter two additional dates, Posting

Period and Entry Date, when saving or updating the entries. These should all be within

the same period. The transaction date is posted to Bank Reconciliation.

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How to Take Advantage of Check Express as a

Companion Module to Bank Reconciliation

If the organization is using Accounts Payable, all entries in Check Express are tracked in

Accounts Payable and Bank Reconciliation.

Check Express, while meant to be a simplified option to produce checks quickly, is also a useful

addition to your toolbox of choices to help you feed history to your General Ledger and Bank

Reconciliation. Most users that are succeeding with their plan for Bank Reconciliation are using

Check Express as a part of that overall plan.

For clarity, below is a chart comparing Accounts Payable & Check Express. It shows which of the

two modules does what and when Check Express might be better for the task.

Task \ Module AP CK

Creating Invoices �

Check Express creates invoices automatically with the

same date as check

Writing Checks � �

Reports � Check Express offers no reports

Deposits It is helpful to post interest deposits through Check

Express to keep GL & BR in sync, especially if your GL

company is not configured to automatically create BR

items for manual journal entries.

• interest �

• small “extra” deposits �

Withdrawals It is helpful to post direct withdrawals through Check

Express to keep GL & BR in sync, especially if your GL

company is not configured to automatically create BR

items for manual journal entries.

• bank charges �

• drafts �

• electronic funds transfers �

“Instant” checks (create check

before posting to history) �

Manual checks � �

Checks update vendor history � � All checks in either module update vendor history

Recurring payments �

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• Check Express only has one date field, the transaction date. As in all sub-ledger

modules, you are prompted to enter two additional dates, Posting Period and Entry

Date, when saving or updating the entries.

• Bank Reconciliation uses the transaction date, while the General Ledger uses the Posting

Period and Entry Date. When using Check Express make the transaction date, posting

period, and entry date all fall within the same month.

Check Express Advantages For Bank Reconciliation

Processing the following type entries in Check Express will assure that they appear in the Bank

Reconciliation file as well as the General Ledger. Incorrectly entering transactions such as these

could be one reason the Bank Statement does not balance with Shelby Bank Reconciliation.

• To process deposits not processed through Donor and Gifts.

• To process Bank charges.

• To process withdrawals.

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When to Use Accounts Payable and When

Check Express Might be Better

Accounts Payable

• When running an accrual accounting system.

• When there is need to run reports for Invoice Listing.

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• When there is need for a Cash Requirements Report.

The Cash Requirements Report is most often used to verify the invoices selected for

payment prior to printing checks. However, it may also be used to see how much

money is needed in the bank account before paying bills.

• When an Aged Analysis Report is required.

Use the Aged Analysis Report to print invoices by due date or invoice date

sequence. The report shows all current, future, and past due invoices, and shows

invoices in over 30, 60, or 90 day-old format.

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• When processing Recurring Payments.

• When using Shelby Purchase Order Module. This module interfaces with Accounts

Payable.

• When a vendor record is selected for invoice processing, there is an option show all

purchase orders for the vendor.

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• Select the purchase order and it will be entered in the PO# Field.

• Select the purchase order to apply to an invoice.

• The program automatically completes the detail line with information from the

purchase order.

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Check Express

General Information

• All transactions will create both a Journal Entry in the General Ledger and an

Outstanding Item in the Bank Reconciliation module.

• Invoice numbers can be manually entered in the For or Line Description fields.

• Entries are always processed on the Cash Basis of accounting.

• Does not interface with the Purchase Order module.

• Vendor Information account defaults entered in Accounts Payable, such as 1099 or

account distribution, also work in Check Express.

• Shelby will coordinate check numbers between Accounts Payable, Check Express, and

Payroll when using the same bank account.

• Vendor reporting for checks and withdrawals (not deposits) can be viewed in the

Accounts Payable module. Also, 1099s are printed from the Accounts Payable module.

When Best to Use

• Processing deposits not from Donor & Gifts. This option will correctly process a journal

entry to credit the appropriate income account and debit the bank account.

• To process withdrawals.

• To process bank charges.

• To process an immediate required check.

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Guidelines For Voiding an Entry to Achieve the

Best Results in All Places

The basic guideline is that voiding must be done in the module where the item originated.

Accounts Payable

If the invoice has been paid, the first process is to void the check.

• Select Utility on the Accounts Payable Menu and Void Checks.

• Select the Vendor name for the check to be voided.

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• Select the box by the Check # Field to access a list of checks for the vendor.

Void and Keep The Detail Line As Unpaid

• Select the check to void and the information is shown in appropriate fields.

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• When this field is checked, the invoice remains in Accounts Payable as an Unpoaid

Invoice. Additional action will be required to process the invoice later or to use the

Undo Invoice option and delete it from the system.

The following illustrates how to retain the detail line and reprocess or delete.

• Select Accounts Payable Void from the Utility Menu.

• Select the Vendor and Check Number to void. Leave the box checked to retain the

Detail.

• Select OK to process the void.

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• Check to date fields to be sure the entry date and period are matched.

• Click OK to process the void Check Register.

• Select Yes to void the check.

• Message shows check is voided.

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• To process the invoice again, or to delete, open the Inquiries on Accounts Payable Home

Menu and Select Unpaid Invoices.

• Click OK to view the list of Unpaid Invoices and open the one with the detail saved.

• Select Undo and Select the period and date to process.

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• This option processes an Undo Invoice Register.

• Click on Close or Print and message appears that the void is complete.

• The item is now placed in the Invoice Processing Field.

• The invoice can now be reissued or deleted.

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Void Check and Invoice

• Select the option to Void Checks from the Utility Menu.

• Select the Vendor and Check.

• Select Add to Grid.

• Select Yes to Void the Check.

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• Select OK to continue.

• Check the Post To Period and Dat of Entry to be sure these are correct.

• Select OK to process the entry and receive the report to verify the transaction.

• Print/Close the Report and respond to the option.

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• To continue, Click Yes.

• The following message indicates the Void is complete.

• The completed process has voided the Check and removed the Invoice.

• The best practice is to not keep the detail line unless there is specific plans to process

the invoice again.

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Check Express

• Select Void Check on the Main Menu.

• Locate the Check Number, Check Date and Amount.

Notice the Vendor is not included so this requires a more concentrated search than

Accounts Payable.

• Once the information is located, Click “Add to the Grid” and run the Void option.

Mark Fisher

Shelby Consultant mark.fisher@shelbyinc.com

Mark Fisher has been serving as a Shelby Independent Trainer since 1998.

He is a South Carolina native and currently lives there in Columbia. He

serves Shelby customers, including denominational headquarters, as a

Shelby Consultant.