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Why balance in Cashbook is Different from GL?

posted Mar 18, 2009, 11:03 PM by Unknown user   [ updated Mar 24, 2009, 12:47 AM ]
Situation

Bank ABC:
GL Listing balance amount = RM 250
Total no. of transactions = 20

Query Cashbook balance amount = RM 100
Total no. of transactions = 10


Reason 1
Users who just adopted EMP, may have done Opening Balance in GL but have not done the opening balance in cashbook or vice versa. Therefore, please make sure that both the GL and Cashbook opening balances have been done.

* Please see the following to to enter the opening balances:

Reason 2
How many cashbooks are using the same GL Code?

If there are 2 cashbooks sharing the same GL Code, CashbookA + CashbookB = GL Balance
Numbers 1,2,3,4,5 represents different transactions with different amounts.

 Cashbook A
 Cashbook B
 GL Listing
 Bank Reconciliation
 1
  11
 2  2 2
  3 3 3
 4  4 4
  5 5 5

As can be seen, to compare balance in Cashbook A with GL Listing is impossible as it consists only part of GL. Bank Reconciliation will also be affected because when comparing the Bank Statement of Cashbook A with GL Listing, the balances will not reconcile. Therefore, users must be certain whether you want to perform Bank Reconciliation.

* If so, then you must do a Cash Transfer by Transaction from Cashbook B to Cashbook A.


Reason 3
When you Create and Reverse Receipt or Payment Voucher, there are normally 4 journal transactions involved. For example, from an accounting view,

  Dr Cr
 Create Receipt Voucher
 Cashbook Accounts Receivable / Sales
 Reverse Receipt Voucher
 Accounts Receivable / Sales
 Cashbook

On some rare occasions, EMP may have only captured 3 of those journal transactions. Leaving only partial work is detected, hence, the GL (eg. Accounts Receivable / Sales) differs from the Cashbook.

However, please do not worry. You can always do Error Checking by editing or deleting the Erroneous Journal Transactions, as anything that does not tally will appear here.


Solution (Trace the errors)
  • Generate transactions:
    • GL Listing
    • Query Cashbook Transactions
  • For the specified periods:
    • 0001-01-01 to 2007-12-31
    • 2008-01-01 to 2008-12-31
    • Then month-by-month basis:
      • 2008-01-01 to 2008-01-31
      • 2008-02-01 to 2008-02-28
      • until December 2008
    • 2009-01-01 to 2009-01-31
      • until current month
  • Tabulate the data above, then go through Reason 1 and 2 again and perform the actions marked *.


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