Changing Banks - Impact on AP and AR

  1. Accounts Payable:

    • If you are ceasing to use the old bank you may choose to keep the same bank code; simply go to AP01 and change the Description and Bank GL account. Your next cheque run will credit the new Bank GL account. You also need to consider assignment of the starting cheque number, which isn't an issue if AP42 is flagged to ask for the starting cheque number (Pre-Numbered Cheques Flag=ON). The Outstanding Cheques Listing will contain cheque numbers for the old bank until they are flagged as cashed in AP86.

    • If you are introducing a new bank and you want to reassign some vendors to the new bank code:

      • AP01 - Set up new bank record. This record will likely specify a new GL account for Bank but likely not a new GL account for AP.

      • AP13 - Attach applicable vendors to the new bank. Check the default setting if an operator or company default record exists.

      • AP83 - Invoices are attached to a bank when they are posted in AP30. Print an AP Listing for the old bank and decide if the outstanding invoices will be paid out of the old or the new bank. If they are to be paid out of the new bank, then you need to change the paying bank code.

      • AP40/41 - Prepare a Cash Requirements file (either run AP40 for the old bank code or create manually using AP41). In AP41-Folder 1, recall each invoice staged for payment and change the Bank code to the new bank code.

      • AP42 - Print Cheques for the new bank.

      • AP43 - The GL Distribution will DR A/P per the GL account in AP01 for the old bank code and will CR BANK per the GL account in AP01 for the new bank code.

        -or-

      • AP50/51 - If paying the invoices by manual cheque then upon entry into AP50 choose the new bank code. When you recall the invoice to be paid (which is attached to the old bank code) a message will be displayed advising that the invoice bank and paying bank do not match; hit YES to proceed. The GL Distribution will DR A/P per the GL account in AP01 for the old bank code and will CR BANK per the GL account in AP01 for the new bank code.

        Note: Remember to add the new Bank GL account to your Balance Sheet format in GL05.

  2. Accounts Receivable:

    • If you are ceasing to use the old bank, you may choose to keep the same bank code and simply go to AR02 and change the Description and Bank GL account. Your next cash receipts run will debit the new Bank GL account.

    • If you are introducing a new bank:

      • AR02 - Set up new bank record. This record will likely specify a new GL account for Bank and may or may not specify an existing GL account for the AR. You may not make changes in AR02 if there is an invoicing cycle in process so you may need to do this set up first thing in the morning before any invoices are entered or after IN44 has been printed at the end of the day.

      • IN08 - Update Payment Methods to include new bank code.

      • SU13 - Attach applicable customers to the new bank. Check the default setting if an operator or company default record exists.

      • AR30/31 - Invoices are attached to a bank code when they are posted in IN44. The GL Distribution for cash receipts will DR BANK per the new bank code assigned on the customer's master file record in SU13 and will CR AR per the old bank code in the outstanding invoice record. For customers now attached to the new bank, the next deposit will automatically post to the correct GL accounts.

        Note: Remember to add the new Bank GL account to your Balance Sheet format in GL05.

    • If you are changing a customer's Bank Code and the Bank's currency changes (e.g. from Euro to US$):

      • The programs that show the customer's account details will be a mix of currencies. The invoice amount is displayed/reported in the foreign currency.

      • For example, an invoice is processed in Euro, then the customer's Bank is changed to US$ and then another invoice is processed. One invoice will be in Euro and the other in US$, but you only know the Bank assignment (and therefore currency) in programs like the Overdue Analysis (AR83), Aging Report (AR84), Customer Statements (AR85) and Customer Display (SU45/C3). In programs that have a Bank Restriction (AR83/AR84), if you choose to report only the US$ Bank, both invoices for that customer will be reported because the restriction is looking at the customer's current Bank assignment in SU13.

      • In this scenario, it would be better to set up another record for the same customer in SU13 that points to the US$ bank.
 
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