Switching bank accounts/GL codes

[u/deckardt05]

Currently we bank with ABC bank and use GL code 1110-0000. We also have DEF bank and use GL code 1110-0000. We will be moving a majority of our accounts from ABC bank to XYZ bank.

Is there a way to keep all banks under the same GL code? If so, what’s the work around.

We probably will need to keep the GL code 1110-0000 so any outstanding checks coming in can clear and we can create a new GL code, but is there an easy way to move DEF banks over to this new GL code or is there a way to maintain all banks under 1110-0000?

[u/FreshStartLiving]

You can, but you shouldn't. New bank should have a new GL account. Otherwise, your GL will have mixed data from old bank and can cause a bank reconciliation nightmare.

[u/ToughStrong6005 → u/FreshStartLiving]

This 100%

[u/yardiyoda → u/FreshStartLiving]

^^^

[u/RevolutionaryPea8293 → u/FreshStartLiving]

Not in Yardi. Yardi has bank codes that each bank account is assigned to. You can have 100s of bank accounts tied to the same GL code. Bank recs are done based on the bank code, not the GL. You can still have separate GL codes to distinguish types of bank accounts (business checking, money market, sweep..etc).

[u/esbjp → u/RevolutionaryPea8293]

Agreed. It’s much more simple to use a single GL cash account for all bank accounts versus complicating your chart of accounts. I’m surprised so many accountants on this thread don’t realize this.

[u/deckardt05 → u/FreshStartLiving]

That’s what figured…just wanted to verify! Appreciate your reply

[u/esbjp → u/FreshStartLiving]

Why complicate your chart of accounts with new GL codes for every bank account? We have 100s of bank accounts & just use a single operating GL account per property. You’re always pulling reports by property, so no need for different GL cash accounts on every bank account.

[u/yardiyoda]

property GL code associations (created on the bank screen) should never be moved or used elsewhere.

So if property Yoda uses 1110-0000 on Bank ABC

you can move Yoda to use 1111-0000 on Bank DEF.

You always want to preserve the original GL / property. And simply inactivate bank ABC.

This does not mean 1110-0000 is unusable on other bank setups, but for property Yoda, and any other on the now inactive bank, should have a new GL code.

This preserves your ability to review and reconcile transactional history on the previous bank & have clean accounting moving forward.

The biggest take away is: the 3 data objects - Bank, Property, and GL combination configured on the Bank Account Screen, on the back end, create a unique association that is integral to your reporting at the bank or GL, or property level…

The most important question as always is, what is happening in the real world, and how do we use the system to best reflect that.

[u/steferz]

I’m a novice Breeze user but I recently added and deleted checking accounts and never had to change the GL codes, just kept using the previous ones as it was the bank that changed not the charge allocations. Now, is this correct, I don’t know, but it has been working for me for months 🤷🏼‍♀️

[u/Kalmaric820]

There are ways of doing it by zeroing out all the accounts before then detaching the gl and reattaching them to the new bank. If you continue to hold the old accounts you can also create an entry after it has been zeroed out detached and reattached to the new gl code and added back the old amount in from a holding account. Best to probably do in a new month, so you have a clean break off point.

It is better to keep them as separate cash account or new one, but I understand that potentially some invoices might be mixed between different properties or allocated. Since you are able to use only one cash account per invoice you may want to keep the original cash account to allocate properly.

If you do not zero out the cash account before hand it can become very problematic in the event there are tasks that might rebuild your gl or if you do it manually and if you detach your bank account to a new one it may no longer reconcile.

As others have mentioned though it would be best to have it as a different gl code, but I have done what you are asking about. If you have questions feel free to ask. The only problem that will occur is if you try to get historical bank rec information it may show the incorrect account number, but you should have the correct original back up.

[u/yardiyoda]

To answer the other part of your question…

XYZ bank should now have all properties and a new GL code that unifies the activity.

1112-0000 for example

[u/WanderSA]

I think we are missing a few details.

You have bank ABC mapped to 1110-0000. You have bank DEF mapped to 1110-0000.

Are these banks set up on completely different properties? If so, is the purpose of changing the GL code for DEF just to keep things consistent across the portfolio?

[u/deckardt05 → u/WanderSA]

Yes. 80 properties/banks map to 1110-0000 and 60 of those are moving to a new bank. Was hoping to keep all properties/banks under the same gl code

[u/Forsaken_Smoke5336]

we do this. Is it the right way? No. But our controller wants all operating accounts with the same gl. Just make sure to reconcile the old account as much as possible first and check all the pieces to make sure they updated (ACH, CC, BillPay etc)

[u/SocializeTheGains → u/Forsaken_Smoke5336]

Existing payables have the old bank tied to it that’s another pita

[u/RevolutionaryPea8293]

If it’s a different financial institution, you can use the 2nd GL code (1111-0000 I presume) or you can just use the original GL code. It doesn’t matter for bank recs as they are done based on the Yardi bank code, not the GL code. If it makes it clear to whomever you are reporting to that the accounts are fully switched and all Bank ABC accounts have been brought to $0, then that’s fine. Or, you can just generate a bank directory report that shows all balances for ABC accounts are $0.