A Bank should be created to represent each account you have with a financial institute – including transactional, merchant and credit card accounts. At least one Bank must be established for use with the Accounts Payable and Accounts Receivable Ledgers so that payment and receipt transactions can be recorded on the system.
You can create as many banks as you need. Each user can have a default bank associated with their individual User login. This user default is used to ‘auto select’ the bank for the user where bank entry is required in transactions e.g. Cash Receipts.
There are a number of displays and reports that can be generated in the system to show summary and detailed cash payments, cash holdings and cash requirements once banks have been created in the system. Additionally the Bank Reconciliation can optionally be turned on in the System Options to allow you to check the transactions in Online Advantage against the transactions that have been recorded by your bank via a Bank Statement or Bank transaction export.
Examples
Banks and the Balance Sheet
A ‘Bank’ is associated with the Chart of Account code representing ‘Cash at Bank’. As you enter transactions for movements in and out of the bank, then GL ‘Cash at Bank’ figure is updated.
Bank Reconciliation
As you receive statements from your financial institution, you can match items appearing on the statement against transactions made and enter any additional items appearing on the statement like fees and interest payments. These new items are reflected in the GL ‘Cash at Bank’ account.
Receiving Payments
If you are running an eCommerce portal and taking online payments, the ‘Banks’ details contains information to connect to a merchant bank service.
Sending Payments
If you are uploading payments to your financial institution, then the ‘Banks’ details contains information about the format required and connection and verification details.
Minimum Requirements
At least one Bank Account must be established for use in the Accounts Payable and Accounts Receivable Ledgers so that payment and receipts transactions can be recorded on the system. You can set up as many banks as you need.
Changing Established Data
You can change the details of an existing Bank at any time, though you may not change the currency of the bank if there is a ledger balance against it.
Take care when changing the General Ledger ‘Bank Balance’ account as you will need to post a manual GL journal to reflect the change to a new account.
Changing connection credentials may cause future incoming or outgoing transactions to fail so be careful when making adjustments.
Panel Options
- Standard panel features
- Maintenance
- Views
- Change Audit – shows data changes made over time to the bank currently being viewed
- Ledger view – shows bank balances in various ways
- Reports
- Bank Details
- Bank Reconciliation
- Cleared Bank Rec’s