Hello,

There was a Transfer posted in Bank Rec from a USD bank to a CAD bank.

The transaction was cleared and posted as reconciled in the USD. The transaction was reversed in CAD. It appears the CAD Reversal was posted to Bank Charges in the GL instead of the USD Account.

To correct, I debited bank charges and credited the USD bank through the GL (in source and home currencies for the credit entry) and the USD bank rec total agrees with our USD GL balance (using the correct exchange).

Is the bank rec module set to default GL to bank charges when a partially cleared transfer is reversed?

Thanks,
Lisa

Hi Lisa,

In the very general case when a bank transfer is posted and everything is the same currency, the initial transfer when posted will update the 2 bank GL accounts in question - there is no intermediate clearing account.

When a bank transfer is Reversed, the same 2 GL accounts are affected, and no other account such as Bank Charges will be touched.

How was the reconciliation performed - manual or imported? If Imported, did you have to 'create a batch' in order to deal with the imported bank transfer? Should this have been the scenario, then creating a batch from an imported reconciliation will use a distribution GL account based on the default Debit/Credit account as defined on the bank in the Electronic Reconciliation section. If this is the scenario, then probably the correct process would have been to not immediately post the created batch, and instead edit the distribution account to the other Bank GL account.

So to answer your question, Reversing a bank transfer directly will only ever post to the 2 GL bank accounts. If a recnciliation was imported and a batch created from unmatched transactions, then the default GL account is defined on the bank.

Multiple currencies should not have any different affect as to the GL accounts posted to.

If you need any more information, could you provide a little more detail as to the steps taken to generate each of the transactions?