User Support Forum

Do I have to do anything in PC when we change banks?


Robin

whfpc wrote:Do I have to do anything in PC when we change banks?


Robin

I'm going to assume that you're changing the checking account. Because the IRS requires that businesses maintain 7 years of data (and in this case the church is considered a business) you can't delete the old records. Even though you have records showing that you paid vendors, etc. Its still the old checking account, and for audit purposes, they have to be able to differentiate between bank accounts.

I'm also going to assume that you will still have some outstanding checks.

So, what I would do is this:

1. Create a new checking account 1120-000. I'm going to assume that you're leaving funds in the old account to cover any outstanding checks. Any funds you used to open the new account you need to move from 1110 to 1120 using a transaction in Funds Accounting that looks something like this: (I would also have the old bank cut a cashiers check to move the funds, and not use a checking account check)

01-1110-000 CR 2000.00
01-1120-000 DB 2000.00

Transaction Notes: Movement of funds from old bank checking to new bank checking.

2. You'll need to change the Contribution Funds that point to the old account, to the new account number.

3. You're going to have to change the VENDOR records as they currently have 01-1110-000 listed as the Credit (bank) account on the Vendor Record, Account Information tab.

4. You're going to have to do the same in Payroll. In Maintain List of Employees on the Payroll Information tab, you need to reflect the new checking account there in the "Bank Account employee is paid from" box.

I think I covered most things. If you use Accounts Receivable, you'll have to adjust things there too.

Once all the checks have cleared the old checking account, you can then go into the chart of accounts, find the old account, and in the details change the account to inactive by removing the checkmark in the Active box.

Does this help?

Oh yeah, you're going to have to reconcile the old account before you render it inactive. That means once you've finally cleared all the old checks, any remaining funds will need to be moved using the same type of transaction you used to move funds into the new account.

Then when the final statement comes from the old bank, you can check off all the checks, and the transfer, and the bottom line should be zero.

Exactly what I needed!! Thanks for your help!

Robin

Wait! How do you set up a new checking account, would it be under fund accounting and setup.

Robin

whfpc wrote:Wait! How do you set up a new checking account, would it be under fund accounting and setup.

Robin

Accounting -> Fund Accounting -> Setup -> Maintain Chart of Accounts

If you have a PCPlus v12 manual (either printed or PDF) its on page 216 - Modifying Your Chart of Accounts. That section covers all areas of the Chart of Accounts, changing accounts, adding accounts, etc.

Do I have to change the vendor and payroll records one by one or is there a way to do a mass change?

whfpc wrote:Do I have to change the vendor and payroll records one by one or is there a way to do a mass change?

I'm going to refer you to my initial reply to you above, items 2 thru 4.

Just as an FYI for the future.

Add your new bank account in Maintain Chart of Accounts
Go to Accounting -> Fund Accounting -> Setup -> Accounting Setup
Change the default bank account number to your new account.
When you do you will receive a prompt like this

Would you like to replace 01-1110-000 with 01-1115-000 in the setup of all modules?

Select yes and it will go through and update accounts to use this new number. You might still want to check the setup places Neil mentioned previously.

<slaps head> ... DOH !!

Jeff wrote:You might still want to check the setup places Neil mentioned previously.

This is especially important if you use multiple accounting funds and/or sub-accounts, since the default account is literally the full nine digit number, the automatic update won't change to reference the account in another fund or with sub-accounts.

Where the default account is 01-1110-000:
It won't automatically update 02-1110-000 or 01-1110-001

thx for the extra info. The reason we are changing banks is because of the customer service, therefore we did not have them cut a cashier's check. I am assuming I will add a new invoice but I am nervous on making changes without direction, if I add the new invoice how would I break it down on the description? I know it's only in the system and things can be changed but....

Robin

whfpc wrote:thx for the extra info. The reason we are changing banks is because of the customer service, therefore we did not have them cut a cashier's check. I am assuming I will add a new invoice but I am nervous on making changes without direction, if I add the new invoice how would I break it down on the description? I know it's only in the system and things can be changed but....

Robin

You really can't add an invoice, you have nothing to charge an expense to, and you really don't want to show this type of thing on the income and expense report.

Just enter the transaction I have listed under Item 1 of my first reply of Dec 9th. That will subtract the funds from the first account, and then show the deposit in the second account. Just write the purpose of the transaction in the note box for audit purposes.

perfect! Thanks again!

Since I did not have them write a cashier's check how do I write a computer check from our checking account to take the money from the checking to the new account? I will have to make a transaction correct? Or am I over thinking this?!??!?
In this case it was our Money Market (I haven't started the process of moving the checking account yet)