Submitted by John_Folmar on Fri, 10/22/2021 - 11:28
Symptom

Why does Bank Reconciliation use the Document Date as the item's cut-off date instead of the Effective Date? 

Cause

The MIP accounting system offers the flexibility to split the general ledger impact of a single document by providing granular control of the Effective Date at a level lower than the Document. This feature can be useful in accrual accounting if a document value should be split between accounting periods. It can also make reversing entry processes more efficient by allowing accruals and reversals to be contained in a single document.
 
However, even though the ability to split Effective Dates within a document is available in all of MIP's Transactions sources, it is best to avoid using this feature in transactions that directly impact Cash type GL accounts. The reason for this is Banks will associate a single date to the detailed activity that flows through a cash account, and that activity will correlate with a single MIP artifact such as a Check/Voucher or Receipt. Because there can be multiple Effective Dates in a single document, relying on Effective Dates for bank reconciliation purposes would be impractical. Since there can only be one Document Date per Document, it is best suited for reconciling with external Bank information. 

Resolution

In transactions that directly affect Cash type GL codes, keep the Document and Effective Dates in synch. 

Article Type
Product Info
Product Line
MIP Fund Accounting
Product Module/Feature
Bank Reconcilliation
Product Version
2021.1.2
2021.1.1
2021.1.0
2020.3.3.0
2020.3.1.0
2020.3.0.1
2020.3
2020.2
2020.1.4
2020.1.2
2020.1.1
2020.1.0
2020.1
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