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Transaction Types and Sub Types

Caroline Buckland Updated by Caroline Buckland

Transaction Types and Sub Types

The Bank Transaction Type Table categorises Bank Statement transactions and identifies the source of the reconciliation code to be used in the Bank reconciliation process. The transaction type and sub-type are taken from the Bank Statement take-on file.

Creation / insertion of Transaction Types will be undertaken when the Bank Statement take-on is specified and will form part of a company setup / build. Ongoing maintenance of Transaction Types will be required as more transactions get loaded into Financials.

Transaction Types can hold certain rules where applicable. They must be setup prior to a bank statement being uploaded.

Rules

Transaction Types can dictate what happens to a transaction with the objective of saving time in data entry before or after a bank statement is loaded.

Bank Reconciliation supports automatic posting to the General Ledger and to Accounts Receivable.

General Ledger Transaction Type (Auto GL):

Automatic generation of journal entries for items such as bank charges will be created from the Bank Statement take-on process if the relevant fields have been populated on the Bank Transaction Type. Typically, bank charges would be defined as a specific transaction type and the “Auto GL Journal” flag set. The date of the transaction will be the statement date, and the batch type will be the “GL adjustment” batch as defined on the Bank Reconciliation Company Controls. Postings made to the GL are made to the AB Balance Class.

Example

Against the bank code 01, which has the GL account GRSV 372621 MS0A, a transaction type CHG has been created for bank charges and the transaction type GL Account has been set as GRSV 133101 1206 and the Auto GL Journal Flag set. A bank charges entry exists on the Bank Statement for £15.78. As part of the take-on process the following journal will be posted to the AB Balance Class:

GRSV 133101 1206 15.78 DR

GRSV 372621 MSA0 15.78 CR

Accounts Receivable Transaction Type (Auto AR Batch):

  • If a Customer Account Number is referenced within the statement upload template, an unallocated cash posting is generated, requiring user intervention to allocate.
  • If an AR Invoice Number is referenced within the statement upload template, an offline AR cash batch is generated, paying the invoice immediately.
  • If neither an Invoice nor Customer Number is referenced, an AR batch is generated in error, requiring user intervention to correct it by reviewing AR.

Example Transaction Types and Sub Type

Navigate to: Systems Admin > Module Controls > Bank Reconciliation Controls > Bank Transaction Types

Enter your Bank Code: Created in exercise 1

Select Search

Select Insert

Create a ‘Transfer Out’ type for Bank Charges posting to GL

Transaction Type: Enter TRO

Transaction Sub Type: Enter BCH

Description: TO Bank Charges

Recon Code Format: Enter “Reference”

Auto-Processing: Select “Auto GL Journal”

GL Account: Enter GL Account from Requirements Sheet

Once Completed, select Save and Return

Select Insert

Create a ‘Transfer In’ type for Unreconciled Bank Statement Items

Transaction Type: Enter TRI

Transaction Sub Type: Leave Blank

Description: Transfer I

Recon Code Format: Enter “Reference”

Auto-Processing: Select “None”

Once Completed, select Save and Return

Select Insert

To create a ‘Transfer In’ type for posting to AR Ledger

Transaction Type: Enter TRI

Transaction Sub Type:  Enter AR

Description: Update to AR Ledger

Recon Code Format: Enter “Reference”

Auto-Processing: Select “Auto AR Batch”

Auto Processing Defaults allows entering further information that can dictate the posting on the AR. Check Requirements Sheet.

Once Completed, select Save and Return

 

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