Chapter 10 - Setup Bank Accounts
Helpful Hints
This section provides an overview of how to establish your bank accounts. The bank accounts screen is used to manage information about the different accounts you may have with various banks. Its main use is to provide you with necessary information about your bank accounts and to provide a general ledger account to use for your checkbook transactions.
The bank Accounts form is used to manage information about the accounts you have with various banks. The main use is to provide you with necessary information about your bank accounts and to provide a General Ledger (G/L) account to use for the banking transactions. You can have as many bank accounts as you want including checking, savings, CD’s and even petty cash.
The following is a list of account types included with Pro Gold XP:
- General Checking -- (Use with accounts such as bill payment, commission, payroll, operating, etc...)
- Escrow Checking -- (Use with escrow/trust accounts)
- Savings ---------------- (Use with savings, CD’s, money market, etc...)
- Other ------------------- (Use with petty cash)
Minimum required data for bank account entry is bank account number, type, bank name and Default G/L cash account. Bank account number cannot be modified once the record is saved so verify number is entered correctly prior to leaving the field. You should ensure each account has a unique name so you can easily distinguish between your accounts (e.g., BofA/Operating, BofA/Escrow, BofA/Commission, etc...).
You must select a Default G/L cash account in order to post entries in banking. The account assigned in the Default G/L Cash Account is used as follows: When you issue a check, you can select the account to use for the Debit, but the system automatically assigns the account to use for the Credit. Likewise, when you enter a deposit, you can select the account for the Credit, but the system automatically assigns the account to Debit. The account assigned should be a unique asset account from the chart of accounts. The G/L assigned permanently belongs to the bank account. It should not be changed nor should the G/L be used with another bank account.
The first account entered will be assigned as the default bank account is the initial account displayed when entering banking transactions. You modify the default bank account by going to Pro Gold XP Main Menu => Setup Tab => Change Company Info Icon => Default Bank Account and select the desired account.
Entering bank address, routing number, and contact info is optional
Sequence of entry:
- Go to Banking Tab
- Select Bank Accounts Icon
- Click New; select Yes
- Enter Bank account number
- Select type
- Enter bank name
- Assign Default G/L cash account
If you enter an Escrow account, you need to go Pro Gold XP Main Menu => Setup Tab => Change Company Info Icon => Escrow Default Tab=> Default Escrow Bank Account and assign the desired account. Also, need to assign escrow default Debit/Credit liability account (system contains default escrow liability account: 2500).
The last two fields: Last Bank Statement Balance & Last Reconciliation Date are filled in by the check reconciliation form each time you reconcile
- Note: Once bank accounts have been setup, you must return to the Establishing Pro Gold XP Defaults section and select a default bank account (Go to Setup Tab at main menu, click on the Change Company Information Icon, go into the Company Tab and select the default the checking account [e.g., general checking account, escrow account if only escrow used, etc…) Suggest use Commission account as default
Account balance entry will be covered in a separate training session
