FENXT - how to reconcile transaction dates with BBMS to account for the 3 day delay?

Kristen Zeng

Hello! We are getting ready to start using BBMS for our credit card gifts - we have never had to wait 3 days for the money to be deposited, and are wondering what others do in this situation. Do you reconcile using the date the gift was actually made, or the day it is received at the bank….? Thanks for any insights!

Dawn Alonso

@Kristen Zeng

We actually have this issue with Student Billing.

We used to recognize the payment in the Student Billing on the date it was made. Then when the disbursement came later we did a reversing entry for the whole amount. You have to recognize the cash on the date it enters the bank.

The entry would look like this:

Line number	Account number	Account description	Post date	Encumbrance	Debit amount	Credit amount	Journal	Journal reference	Class
1	01-111100-105-00	PNC CHECKING	09/21/2023	Regular	$107.08		Cash Receipts	BBMS	Unrestricted Net Assets
2	01-717055-000-02	CREDIT CARD FEES	09/21/2023	Regular	$1.38		Cash Receipts	BBMS	Unrestricted Net Assets
3	01-111100-105-00	PNC CHECKING	09/21/2023	Regular		$108.46	Cash Receipts	BBMS	Unrestricted Net Assets

For our Controller's sanity when doing bank reconciliations we decided to use a holding account for BBMS payments, so now they look like this:

Line number	Account number	Account description	Post date	Encumbrance	Debit amount	Credit amount	Journal	Journal reference	Class
1	01-111100-105-00	PNC CHECKING	09/21/2023	Regular	$107.08		Cash Receipts	BBMS	Unrestricted Net Assets
2	01-717055-000-02	CREDIT CARD FEES	09/21/2023	Regular	$1.38		Cash Receipts	BBMS	Unrestricted Net Assets
3	01-211213-205-00	BBMS HOLDING ACCOUNT	09/21/2023	Regular		$108.46	Cash Receipts	BBMS	Unrestricted Net Assets

You can reconcile the holding account by running a transaction list for “Not disbursed."

Funny enough we just were remarking yesterday as to what a game changer this was for bank reconciliations. If you have questions, just let me know.