• From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Topic: reconciliation issue

Hi,

This is not so much a bug as it is a user error, but it took me a while to figure it out, and I suspect that this should have been immediately apparent either through an error message at the time of entry, or through use of the reconciliation module.

The problem: I created several quick entry entries for the recommended reasons.  it turns out that in two of my quick entries, I had accidentally set the remainder to to my chequing account instead of a GL Liability account.  This resulted in supplier invoices showing in the chequing account GL, and my bank account being out of balance.

I think that because the GL is tied to a bank account, it should not be able to have supplier invoices entered against it, only payments and similar.  I think an error should be generated when this happens.  I am no accountant, so perhaps there is a usage scenario where you would enter a supplier invoice in your bank account GL, in which case I think wrong.

However, these entries should have shown up when I did the reconciliation, and they did not.  The supplier payments I entered did, but the supplier invoices entered through the quick entry did not. 

As I said, this is clearly a user error on my part and not on the part of FA, however, I would suggest for future consideration something be put in place to prevent this kind of human error...

bobloblian's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: reconciliation issue

Creating Quick Entry templates is entirely in the realm of the user assuming they know what they are doing. Whether any account therein is a bank account or otherwise is immaterial to a double entry accounting system - it will balance, but the bank accounts may not reconcile with bank statement from the bank if you willed it otherwise.

apmuthu's Website

  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: reconciliation issue

Hi Apmuthu, you are absolutely correct that the issue was created by my own error. 

However, when I used the reconciliation function, the vendor invoices that were entered in the bank account GL did not appear.  That is to say, under banking and general ledger=> reconcile bank account, the mistakenly entered vendor invoices should have appeared as credits, but they did not.  It was only by going and manually reconciling the GL account that I was able to find the discrepancy.  I am pretty sure that is an unintended limiation/oversight. 

Please also see my post regarding beginning and ending balance, which I believe is related, but I haven't actually proven yet. 

There is no argument this is human error; specifically my error, but if I can make it others can and will.  So my suggestion that the reconcile function be adjusted to show the error, or a check be implemented to prevent invoices being entered against GL accounts configured with a bank account, is to make the program more robust and user friendly so that it may enjoy wider adoption and higher creditation....

bobloblian's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: reconciliation issue

This was probably left as is due to the fact that some adjustment entries should not show up amongst the actual bank statement entries and confound the user.

@joe: what's your take? Will the proposed solution (exception thrown out) affect the situation more than it seeks to set right?

apmuthu's Website

  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: reconciliation issue

I feel like I am harping on this issue excessively, if I am please accept my apologies.

Another thing I have noticed is that the bank account reports do not match the GL account reports that are tied to them.  I still haven't had time to sit down and do the math, but in general it seems to me that the reconcile bank account module and the bank account report are calculating the same thing, and neither of them is including all entries that actually exist in the GL account.

bobloblian's Website

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,085

Re: reconciliation issue

Hello,

I will ask Janusz to look into this asap.
@apmuthu.
Just put this into the list of items for 2.4 release. Ev. backport to 2.3 if needed.

/Joe

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: reconciliation issue

FA 2.4 Items list done.

apmuthu's Website