In today's fast-paced business environment, efficient financial management is crucial for maintaining a competitive edge. Microsoft Dynamics GP (Great Plains) offers various functionalities that many organizations may not fully leverage for accurate reconciliation of general ledger (GL) and subledger accounts. Optimizing the use of your existing GP software modules can significantly enhance business operations, streamline processes and improve overall efficiency.
Streamlining financial operations and reconciliation with automated modules
Leveraging existing tools and techniques within Microsoft Dynamics GP for automated processing and reconciliation can significantly streamline processes, save time and reduce errors. Potential opportunities within modules include:
The Electronic Banking series within GP consists of EFT for Payables, EFT for Receivables, Safe Pay and Electronic Reconcile. These modules are designed to automate the banking processes within GP and to improve financial efficiency.
The EFT for Payables and EFT for Receivables functionalities enable your business to record payments and receipts electronically in GP, reducing manual processing and minimizing errors. Various bank formats are supported, including international ones. EFT offers flexibility in setting up EFT formats per vendor or customer.
The Safe Pay module, equivalent to the positive pay service offered by banks, prevents fraudulent checks by transmitting a file to the bank listing authorized payments.
The Electronic Reconcile module enhances efficiency by automatically matching downloaded bank statement transactions to your transactions recorded in GP, reducing the need for manual reconciliation.
Intercompany Transactions streamlines the financial processes for organizations with multiple entities by seamlessly transferring transactions between different companies in GP. By automating intercompany transactions, businesses increase accuracy and consistency in their financial records, reduce the risk of errors, and save time on manual entries.
Various transaction types are supported, including payables, receivables and general ledger entries, making it a versatile tool for managing intercompany activities. Proper setup and mapping of accounts are crucial for seamless intercompany transactions, and tools like Integration Manager or Smart Connect can further streamline this process.
Revenue Expense Deferral Schedules are essential for managing revenue recognition or expense prepaids. This functionality allows businesses to reclassify prepaid expenses and recognize revenue using specific terms within a specified date range, ensuring financial statements reflect true economic activity. Users can set up posting profiles to expedite data entry, especially for recurring transactions. This module supports deferrals for general ledger, sales orders and accounts payable and can be applied to future periods, providing flexibility in financial management.
The Reconcile to GL tool is essential for maintaining the integrity of financial records and ensuring accuracy in your transactions. This tool enables your business to reconcile subledgers such as payables management, receivables management, bank reconciliation and inventory with the general ledger. By comparing transactions within a specified period, the tool identifies matched, potentially matched and unmatched transactions, facilitating the detection of discrepancies and variances.
This functionality is particularly useful for resolving issues that arise during the reconciliation process generating financial records that remain accurate and current. Users can specify a date range to run the reconciliation for and which subledger, such as payables management, to create a dynamic spreadsheet in Excel with drill-down capabilities. The functionality allows for a thorough examination of individual transactions, making it easier to identify and correct variances. The ability to drill down into specific transactions ensures prompt addressing of discrepancies, maintaining the accuracy of financial records.
The takeaway
Your organization may have key functionality you are not using within Microsoft GP. However, optimizing your GP modules can enhance business operations, improve efficiency and enhance financial record accuracy, strengthening your position in the marketplace.
Ready to get started? RSM's Microsoft professionals can assist your business with setting up and using the electronic banking series, intercompany transactions, revenue deferral schedules and reconciling them to GL tools.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
