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FAQ: Our district is changing banks; how do I set up the new checking account in the School Accounting System?

When changing banks, there are two options for setting up the new checking account in the School Accounting System, as outlined below.

Recommended Option – Option 1:  Add a New Cash Account to the Existing Checking Account

Option 1 is the recommended approach for most customers because it provides the smoothest transition when both the old and new bank accounts overlap for a short period of time.  With Option 1, a new cash account number is added in the Chart of Accounts for the new checking account; and then the new cash account is tied to the existing checking account in the Checking Accounts option, and the appropriate Cash Account fields are updated to the new cash account in the Fund File.

Option 1 Setup Steps:

  1. Add the new cash account in the Chart of Accounts (accessed under the Maintenance menu in General Ledger), and save.
  2. In the Checking Accounts option (accessed under the Maintenance menu in General Ledger), bring up the existing checking account and select the new cash account in the Reconciliation Accounts List (in addition to the old cash account that is already selected).  If needed, update the description for the checking account in the Checking Account Description field.  Save the changes.
  3. In the Fund File (accessed under the Maintenance menu in General Ledger, Reference Files, and Funds), bring up each applicable fund and update the appropriate Cash Account fields to be the new cash account so transactions post correctly.  Save the changes.

Reconciliation Tips for Option 1:

  • Reconcile both the old and new cash accounts together
  • Combine the statement balances from both bank accounts
  • Clear items from both accounts during the reconciliation process

Benefits for Option 1:

  • Simplifies the transition period
  • Allows old outstanding items to continue clearing normally
  • Avoids employee payroll account changes
  • Maintains separation between the old and new bank accounts via the cash accounts while still allowing a seamless conversion

Alternate Option – Option 2:  Create a New Checking Account and New Cash Account

Option 2 is an alternate option available to use, if needed.  With Option 2, an entirely separate checking account and cash account are created.

Option 2 Setup Steps:

  1. Add the new cash account in the Chart of Accounts (accessed under the Maintenance menu in General Ledger), and save.
  2. In the Checking Accounts option (accessed under the Maintenance menu in General Ledger), add a new checking account, being sure to select the new cash account in the Reconciliation Accounts List; and save.
  3. In the Fund File (accessed under the Maintenance menu in General Ledger, Reference Files, and Funds), bring up each applicable fund and update the appropriate Checking Account ID and Cash Account fields to be the new checking account and cash account so transactions post correctly.  Save the changes.
  4. If the new account will be used for Payroll, update the Checking Account ID field for employees on the Employment and Wages screens in the Employee File (accessed under the Maintenance menu in Payroll).  Contact Customer Support for assistance with mass updating the employee records.

Reconciliation Tips for Option 2:

  • The old and new accounts will be reconciled separately

Important Considerations When Using Option 2:

  • Voiding an Old Check:  If an old check is voided after the change, the void will increase the new cash account unless temporary changes are made first.  To avoid this, temporarily change the cash account in the Fund File back to the old account, void the check, and then change the cash account back to the new account.
  • Reissuing an Old Lost Check:  If a lost check from the old checking account needs to be reissued, it cannot simply be reprinted on the new checking account.  Instead, void the original check and then reissue the check from the new account.
  • Adjusting Posted Entries for an Old Check:  The Adjust Posted Entries option cannot be used for checks written from the old checking account.  Since the checking account on the fund no longer matches the checking account from which the original/old check was written, no account numbers will show when trying to adjust the posted entry.  Manual journal entries would need to be completed instead.