Bank Accounts are found under Settings > Bank Accounts.
Enter the following:
Account Name. This can be the name of the bank, or any name that will make sense when selecting the correct bank when adding payments.
Default GL Account: Each bank account needs to have its own GL asset account. Learn more about GL Accounts.
Undeposited Funds GL Account: Tres comes with a default set of GL accounts and includes an Undeposited Funds account. If you are converting your GL accounts from Trams Back Office, you must have an Undeposited Funds GL Account.
Undeposited Funds is a holding account until the time that a deposit is made, and the money is moved to the Bank account. For Agencies using General Ledger, when you receive a check from a Client or Supplier there will be a Debit to Undeposited Funds and Credit to Supplier Balances for the amount of the check. When the actual deposit is made to the back there is a follow up journal entry attached to the Deposit that Debits the Default GL Account for the bank and Credits Undeposited Funds zeroing out the balance in Undeposited Funds.
If all your bank accounts are in local currency, then just one undeposited fund account can be used for all which would be set up under General Ledger Setup > General Ledger Account Mapping and you can leave this field blank.
If you have a mix of bank accounts with foreign and local currencies, then a separate Undeposited Funds account should be set up for each bank account. You should not have transactions with different currency flowing through a single General Ledger account.
Status: When creating a Bank Account, the status will default to Active. If the Bank Account is no longer used, change the status to Inactive.
Currency Code: Enter a currency code to designate a bank account for foreign currency. For example, if your agency deposits CAD funds into this bank account, enter CAD.
Description: Use this field to store bank account and routing numbers or a general description of the account (savings, checking, money market, etc.)
When you enter a Currency Code, the following fields appear. Enter a 3-character Currency Code, code will display additional fields for Conversion Rate and Conversion Currency GL Account.
Currency rate: The exchange rate needed to convert the foreign currency to your local currency. This rate becomes the default “Conversion Rate to Local Currency” when you create a payment using this back account.
Currency Conversion GL Account: When you have a foreign currency bank account you will see that payment differences between your foreign currency amount and your local currency equivalent amount is journalized to this account.
Transactions are reconciled and recorded in the foreign currency, but your Balance Sheet needs to reflect local currency. When you add the Default GL account balance on the Balance sheet and the Currency Conversion GL account balance for the foreign currency bank account you will have the Local Currency balance for that Bank account reflected.