We are attempting to use Bank Statement Processing and our current process is to make Journal Entries for things like transfer to bank accounts outside Epicor, petty cash withdrawals, fees, interest, etc.
I understand that the recommendation is to use Bank Adjustments and Bank Transfers, however, since we are trying to reconcile a statement where these were done via journal entries…how do we handle these transaction to get the statement to balance?
If we process Bank Adjustments now, will the GL accounts be doubled? Do we need to reverse the original journal entries?
You will either need to exclude the transactions from the statement (and adjust your beginning/ending balances to match) or you will need to reverse the original journals when you post the statement. The original journals entries are not tied to the specific transaction types so adding the bank transfer, bank adjustment, etc to reconcile to the statement will double up what you’ve already entered as manual journals.
When we started on Epicor our accounting manager made a lot of these entries as journal entries in the first month. They had to reverse all of those and re-enter as bank adjustments and bank transfers once they processed the statement.