Banking for GL
September 2014
Icebreaker
Class Format
• Presentation
• Demonstrations
• Exercises
• Questions. Ask them! We’ll either:
– answer immediately
– put them on a “Parking Lot” and get an answer
Course Map
Bank
Reconciliation
Overview of Bank
Reconciliation
Entering Bank
Statement
Information
Running
Automated Bank
Reconciliation
Running Semi-
Manual Bank
Reconciliation
Recording Interest
& Fees
Bank
Transfers
Overview of Bank
Transfers
Creating a Transfer
Template
Approving a
Transfer Template
Entering a Bank
Transfer
Selecting a
Settlement
Approving a
Settlement
Running
Automated
Accounting
Wire
Transfers
Dispatching a
Payment in
Financial Gateway
Memo Bank
Balancing
Understanding
Memo Bank
Balancing
Running the Re-
balancing Query
Bank Reconciliation Overview
• The primary reasons for performing bank reconciliations
include:
– Identifying timing differences and imbalances between bank and
system transactions
– Identifying potential accounting or banking errors
– Detecting instances of fraud or other unauthorized activity
• Bank reconciliations play a vital role in managing cash at the
university
Banking Definitions
Field
Description
Example
External
Bank
ID
Code that identifies the bank. It is the
bank’s routing number. It is assigned
by the bank's regulatory agency.
053110594
Bank
Account
#
Assigned by the bank.
It is a number
or code that identifies the bank
account.
1000720
Bank Code
A code that is used to group together
more than one bank account. It is
assigned
by the banking team.
BK802
Bank Account
The bank account is the last four
digits of the bank account number.
0720
Statement date
Statement date from
the bank
statement.
9/22/2014
Transaction
date
The date the system transaction
occurred in
ConnectCarolina
8/25/2014
Bank Date
The date the bank recorded the
transaction
on the bank statement
8/25/2014
Note:
The Bank date
cannot be greater than
the Statement date.
Bank Reconciliation Process Steps
1. Enter or Import Bank Statement Information
2. Run Automated Bank Reconciliation Process
3. Run Semi Manual Bank Reconciliation Process
4. Record Interest and Fees
5. Query system for relevant reconciliation information
6. Compile bank reconciliation information in Excel
Bank Reconciliation
• Step 1: Entering Bank Statement Information:
• Key steps:
A. Enter bank balance information
B. Enter bank transaction information
C. Click Save
• Demonstration and Exercise 1-1: Entering Bank Statement
Information
– Reference:
• Entering Bank Statement Information
Exercise
Bank Reconciliation
• Step 2: Running Automated Bank Reconciliation:
• Key steps:
A. Search for the entered bank statement
B. Select the bank statement
C. Click on the Run Recon button
• Demonstration and Exercise 1-2: Running Automated Bank
Reconciliation
– Reference:
• Running the Automated Reconciliation Process
Exercise
Bank Reconciliation
• Step 3: Running Semi-Manual Bank Reconciliation:
• Key steps:
A. Search for unreconciled bank and system transactions
B. Select the unreconciled bank and system transactions that are a
match
C. Click on the Reconcile button
• Demonstration and Exercise 1-3: Running Semi-Manual Bank
Reconciliation
– Reference:
• Running the Semi-Manual Bank Reconciliation Process
Exercise
Bank Reconciliation
• Step 4: Recording Interest and Fees:
• Key steps:
A. Enter the external bank interest or bank fee transaction header
information
B. Enter the external bank interest or bank fee transaction detail
information
C. Click on the Save button
• Demonstration and Exercise 1-4: Recording Interest and Fees
– Reference:
• Recording Interest and Fees
Exercise
Course Map
Bank
Reconciliation
Overview of Bank
Reconciliation
Entering Bank
Statement
Information
Running
Automated Bank
Reconciliation
Running Semi-
Manual Bank
Reconciliation
Recording Interest
& Fees
Bank
Transfers
Overview of Bank
Transfers
Creating a Transfer
Template
Approving a
Transfer Template
Entering a Bank
Transfer
Selecting a
Settlement
Approving a
Settlement
Running
Automated
Accounting
Wire
Transfers
Dispatching a
Payment in
Financial Gateway
Memo Bank
Balancing
Understanding
Memo Bank
Balancing
Running the Re-
balancing Query
Bank Transfers Overview
• The primary reasons for executing bank transfers include:
– funding bank accounts used for disbursements
– balancing memo banks
• Bank transfers are executed at the university’s various
external banking institutions
• The Manual Check (MAN) payment method is the generic
form of payment used for the bank transfer
• The MAN payment method is a recording of a transaction that
has already occurred outside the system
• System automatically creates a generic chartfield string to
conduct all bank transfers
Bank Transfer Process Steps
1. Create a Transfer Template
2. Approve a Transfer Template
3. Enter a Bank Transfer
4. Select a Settlement
5. Approve a Settlement
6. Run Automated Accounting
7. Manually Run Journal Generator
Bank Transfers
• Step 1: Creating a Transfer Template:
• Key steps:
A. Enter the origin bank information
B. Enter the destination bank information
C. Click Save
• Demonstration and Exercise 2-1: Creating a Transfer
Template
– Reference:
• Creating a Transfer Template
Exercise
Bank Transfers
• Step 2: Approving a Transfer Template:
• Key steps:
A. Search for and select the template that needs to be approved
B. Click Approve
• Demonstration and Exercise 2-2: Approving a Transfer
Template
– Reference:
• Approving a Transfer Template
Exercise
Bank Transfers
• Step 3: Entering a Bank Transfer:
• Key steps:
A. Add a New Value
B. Select Transfer Template ID
C. Click Save
• Demonstration and Exercise 2-3: Entering a Bank Transfer
– Reference:
• Entering a Bank Transfer
Exercise
Bank Transfers
• Step 4: Selecting a Settlement:
• Key steps:
A. Search for unselected bank transfer transactions
B. Select the bank transfer transaction
C. Click on the Select Payments button
• Demonstration and Exercise 2-4: Selecting a Settlement
– Reference:
• Selecting a Settlement
Bank Transfers
• Step 5: Approving a Settlement:
• Key steps:
A. Search for selected bank transfer transactions
B. Select the bank transfer transaction
C. Click on the Approve Payments button
• Demonstration and Exercise 2-5: Approving a Settlement
– Reference:
• Approving a Settlement
Exercise
Bank Transfers
• Step 6: Reviewing Treasury Accounting Entries:
• Key steps:
A. Enter Business Unit
B. Click on the Search button
C. Select the Bank Transfer Source ID
D. Click on the Chartfields tab under the accounting entries section
• Demonstration and Exercise 2-6: Reviewing Treasury
Accounting Entries
– Reference:
• Running Automated Accounting
Exercise
Course Map
Bank
Reconciliation
Overview of Bank
Reconciliation
Entering Bank
Statement
Information
Running
Automated Bank
Reconciliation
Running Semi-
Manual Bank
Reconciliation
Recording Interest
& Fees
Bank
Transfers
Overview of Bank
Transfers
Creating a Transfer
Template
Approving a
Transfer Template
Entering a Bank
Transfer
Selecting a
Settlement
Approving a
Settlement
Running
Automated
Accounting
Wire
Transfers
Dispatching a
Payment in
Financial Gateway
Memo Bank
Balancing
Understanding
Memo Bank
Balancing
Running the Re-
balancing Query
Dispatching a Wire Payment
• Financial Gateway is part of the system where wire transfer
vouchers are dispatched to bank
• Currently only Domestic wire vouchers and foreign wire
vouchers paid in US Dollars are dispatched through Financial
Gateway
• Foreign wire vouchers paid in foreign currency are handled
outside the system and are recorded with a Manual payment
method when the voucher is created. These types of vouchers
are not dispatched through Financial Gateway
• Disbursement Services creates and posts the wire transfer
vouchers. Accounting Services dispatches the wire transfer
vouchers to the bank
• There will be a communication between AP Disbursement
Services and Accounting Services when a wire transfer
voucher is created and posted
Dispatching a Wire Payment
• Navigation: Main Menu > Finance Menu > Financial
Gateway > Process Payments > Payment Dispatch
• Key steps:
A. Choose Awaiting Dispatch = Dispatch Status
B. Choose Wire Transfer = Payment Method
C. Enter the start and end date of the payment date range
D. Click on the Search button
E. Mark the wire payment transaction(s) that need to be
dispatched
F. Click on the Dispatch Settlements button
G. Click OK
• Demonstration: Dispatching a Wire Payment
– Reference:
• Dispatching a Payment in Financial Gateway
Course Map
Bank
Reconciliation
Overview of Bank
Reconciliation
Entering Bank
Statement
Information
Running
Automated Bank
Reconciliation
Running Semi-
Manual Bank
Reconciliation
Recording Interest
& Fees
Bank
Transfers
Overview of Bank
Transfers
Creating a Transfer
Template
Approving a
Transfer Template
Entering a Bank
Transfer
Selecting a
Settlement
Approving a
Settlement
Running
Automated
Accounting
Wire
Transfers
Dispatching a
Payment in
Financial Gateway
Memo Bank
Balancing
Understanding
Memo Bank
Balancing
Running the Re-
balancing Query
Memo Bank Balancing Overview
• Memo bank balancing is conducted on a daily basis
• GL cash account balance indicates where the amount of the
actual funds were booked in the system
• Memo bank number indicates the account the money should
have been booked to
• Run the NC_MEMO_BANK_UNCCH or
NC_MEMO_BANK_UNCGA Re-balancing query to identify
discrepancies between GL cash accounts and memo bank
balances
• The memo bank balance is always the correct balance that the
user reconciles to. The user is trying to make the GL balance
reflect the Memo Bank balance. Bank transfers need to be
made to increase or reduce the GL amount to match the
Memo Bank balance
Memo Banking Definitions
Field
Description
Example
Bank
Account
The bank account is the last four
digits of the bank account number it
represents.
0720
GL
Cash
Account
A unique six
-
digit GL cash account has
been setup for all bank accounts.
UNC
-Chapel Hill cash accounts begin
with 111 and UNC General
Administration cash accounts begin
with 110. All GL cash accounts end
with their assigned three digit memo
bank number.
111002
Memo
Bank
Number
Each bank account is assigned a
unique three
-digit memo bank
number. The memo bank number is
the last three digits of the GL cash
account. All fund codes are assigned a
memo bank number in the system.
The memo bank number indicates
the account that fund code’s money
should be held in.
002
In the system, there is a one-to-one relationship between bank
accounts, memo bank numbers, and GL cash accounts.
External Accounts Example
External
Bank ID
Bank
Account #
Bank
Code
GL Cash
Account
Memo
Bank
Bank
053110594
1000720
BK802
111002
002
NC State
Treasurer
Memo Bank Balancing
• Key Steps:
1. Run the re-balancing queries (NC_MEMO_BANK_UNCCH or
NC_MEMO_BANK_UNCGA)
2. Perform rebalancing analysis to determine necessary bank transfers
3. Perform necessary bank transfers, run automated accounting, and run
journal generator
4. Re-run re-balancing query
5. Verify GL cash account balances equal their respective memo bank
balances
6. Post GL journals
7. Save rebalancing query results in Excel
• Demonstration: Memo Bank Balancing
– Reference:
• Understanding Memo Bank Balancing
• Running the Re-balancing Query
Questions & Answers
Now What?
• Training Website
http://cctraining.web.unc.edu/
• ConnectCarolina Website
http://ccinfo.unc.edu/