Bank Deposits

This post describes how to do bank deposits, using Energy Corridor—unified accounting software for oil and gas.

When you’re in regular deposit creation mode, you have pending bank deposits, which are the ones you’re creating, and your outstanding receivables that you can pick from.

The first thing you should do is set your deposit date. In this case it was a long time ago. We’ll make it December 31, 2020. You may have noticed that the outstanding receivables have increased, because we’ve moved forward in time, so we have more receivables to pick from.

The other thing that controls what receivables you see is your account selection. In this case, we only have two receivables accounts selected. Let’s pick a couple more. We may also want to see some payables accounts, just in case somebody has netted off some payables.

Energy Corridor account selection

Now, usually your account selection doesn’t change that often, so it’s better probably to hide it so you have more space. Now we have quite a number of outstanding receivables to select from. You should also pick the bank account that you’re depositing to. You can add a comment for your bank deposit run, if you like. The total amount is calculated for you, and this is for each individual deposit.

Let’s make a deposit. We’re going to do one for BP. We have a couple outstanding receivables, so we can pick them both.

Here’s our deposit for BP. We can say that it’s an EFT, if we like. In this case, it’s two receivables, so we’re just going to go ahead and create the deposit.

Energy Corridor bank deposit

We could have viewed the deposit slip before, but here you’ll see the deposit slip when you book the deposit, and you can print it if you like. In this case we’re just going to go straight ahead and book it.

Now that you’ve made a deposit, you might want to go and see the deposit. You can view previous deposits. This is the deposit we just made.

Energy Corridor bank deposit

Energy Corridor tells you what voucher it’s on and what date. It was created on Voucher 4500 for December 2020. Now, the voucher for deposits is created in the accounting month that the deposit is deposited on. This deposit date is important for that.

In this case, if we double-click the deposit, Energy Corridor will actually take us to the voucher viewer to see the voucher that was created for the deposit. If we look at the details, the two receivables, you can also double-click and it will take you to the receivable, the voucher that the receivable came in on.

Energy Corridor deposit voucher

You can drill down to see what’s gone on. Let’s go back to creating deposits and look at the vouchers created in the deposit function, which are created as a voucher type: in this case, a deposit. We suggest you set up a voucher type for your deposits. Any voucher type can be used for deposits, but what you do is check off deposits and that will make the voucher type good for deposits.

You can only have one voucher type for deposits, or for overhead or any of the voucher types here. In this case, we’re going to go to our deposit vouchers and this is the voucher for BP. Now, I’ve decided that I made a mistake and they actually short paid us this $38,000 receivable. I’m going to roll back this voucher.

This is how you delete or remove a deposit you’ve made. You have to roll back the voucher and then delete it. Now, if we go back to the deposit manager you will see that BP’s receivables are again available.

Let’s do this again and correct it. On this one they short paid, so we’ll make that a short pay of $38,000. Then we’ll book the deposit.

Our $38,000 receivable has been credited, but then we have an adjustment for what was short paid.

Energy Corridor deposit adjustment

Next, we’ll look at another situation, if you have to make an adjusting entry. We’ll pay this invoice from Bob’s Well Maintenance.

Now, for some reason they like to round things, so they rounded the payment from $28,612.54 to $28,613.00. What we need to do there, you select the deposit, right-click it, add balancing entry and we’re going to adjust it by 46 cents to make the deposit an even $28,613.00.

We’ll book this deposit. And you can see on this deposit, the 46 cent manual balancing entry to balance the voucher. And again, if you haven’t used the voucher in, well, usually it would be, you’ve reconciled the deposit, then you can roll it back, delete the voucher, and then the receivable and/or payables that you’ve used are again available.

That is how to do bank deposits in Energy Corridor.

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Bank Reconciliation

This post and video tell you how to perform a bank reconciliation using Energy Corridor, the oil and gas accounting application.

We’re in the bank reconciliation screen. And right now we have a reconciled month for account 1010. You can see when an account is reconciled, it’s green. It also says in the bottom right-hand corner that the account is locked for this month.

An account is reconciled when you have included all of the items that are on your bank statement and you’ve input your bank statement closing balance, and your opening, plus all of the items you’ve included, equals your closing.

We’re going to do the bank reconciliation for January. Right now we have not included anything. We’re going to put in the closing balance as per our bank statement. You’ll notice that Energy Corridor gives us our out of balance amount. So what we do is include items until this out of balance is zero, and then we’ll be reconciled.

Energy Corridor bank reconciliation window

One thing you’ll notice is that some items are grayed out. A grayed out item, if we try and check it, will tell us it’s reconciled in a future month. If we look at February, we’ll see that someone has reconciled to it items for February. They know that they’re part of the February bank statement. You’ll also notice you get a warning that you’re not in the next month to reconcile and that January of 2020 still needs to be done.

Let’s go back to January. The first thing you’ll do is import your bank statement. All banks will supply a CSV file of your bank statement. If you select it —and you only have to do this once — you tell Energy Corridor the format of the statement by specifying which columns, debits, credits, comments, and the transaction data in and optionally the cheque number. Once you’ve done that, you can get your statement details. We’ll read the statement and import matching entries.

Energy Corridor Bank Statement Import

In this case, it’s matched all four entries. It matches based on the entry amount and optionally the cheque number. You can have more than one entry with the same amount. And in that case, it does not include them automatically. It marks them with yellow, and you’ll have to include those manually.

You can see that our four items have been included from the bank statement. Now, in theory, once you’ve done that, if all items were included from the bank statement and you’ve input your bank statement closing balance correctly, you should be reconciled.

In this case, we didn’t have it do that. When you include an item in the reconciliation, Energy Corridor clears the cheque as of the transaction date in the file. It also clears the entry. If the entry is not a cheque, it just clears it as of that date. But in this case, to reconcile this account, we have to include two more entries. You can see that they’re also cheques and now we’re reconciled. Our out of balance amount is zero.

Energy Corridor bank reconciliation window

Now, the entries that have been included, plus the opening balance, equals our closing balance. We can finalize this month, and we can also do our report. The bank reconciliation report shows the account for the month, shows the opening balance, withdrawals, deposits, withdrawals outstanding, the closing balance, and the matching ledger amount.

We can also see outstanding checks for the account. You’ll notice that you can set an initial opening balance that would only be used on your very first month. We also have an option to include all entries. So if you do have many, many entries, you can include them all and then start unchecking them if you want to do it that way.

That’s how to do a bank reconciliation in Energy Corridor. One other thing worth noting is that clients often have difficulty when they’re trying to roll back a deposit. When they try to roll it back, they see a message that it’s been used. Nine times out of ten, that means is that it has already been used in the bank reconciliation. We’ll go to February to see if the item is a deposit. It’s been included, you can’t roll it back. So come to your bank reconciliation, uncheck it, and you will be able to roll back your deposit. Of course, if you included it in a month that’s been reconciled, that deposit is done.

That’s how you do your bank reconciliation in Energy Corridor. Don’t you wish it was always that easy?

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