Effectively managing company bank accounts is crucial for maintaining financial health and operational efficiency. Costpoint, a robust accounting software, offers a dedicated screen to handle this critical task. This guide provides a detailed walkthrough of the “Maintain Company Bank Accounts” screen in Costpoint, ensuring you can accurately set up and manage your financial institution details within the system. Understanding how to properly configure your bank information, including aspects relevant to a Costpoint Reserve Bank setup if needed, is essential for seamless bank reconciliation, Electronic Funds Transfer (EFT) processing, and overall financial reporting.
This setup is a foundational step within Costpoint, typically performed during the initial system configuration, before any detailed financial transactions are entered. Accurate bank account information is paramount for smooth integration with other Costpoint modules like Accounts Payable and Payroll, especially when initiating fund transfers. Before any updates to account details, establishing the bank account abbreviation within this screen is the first crucial step.
For companies leveraging EFT for vendor payments, initializing details within the EFT Bank Info subtask, accessible from this screen, is also a mandatory step.
Understanding the Identification Section
The “Identification” section is where you input the fundamental details that uniquely identify your bank and account within Costpoint.
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Bank Abbr (Bank Abbreviation)
This is a mandatory field requiring up to six alphanumeric characters. It serves as a user-friendly identifier for your bank account within Costpoint, particularly in Bank Reconciliation screens. Think of it as a nickname. For instance, instead of the full bank name, you might use abbreviations like “CHK1” for your primary checking account or “SVG-OP” for an operational savings account. This abbreviation should be intuitive for users involved in bank statement and General Ledger (G/L) reconciliations. Use the Find or Query functions within Costpoint to check for existing abbreviations if needed to maintain consistency.
Bank ID (ABA Number)
This required field is where you enter the bank’s nine-digit Bank ID, commonly known as the ABA (American Bankers Association) number or routing number. This number uniquely identifies the financial institution. Costpoint uses “Bank ID” and “ABA number” interchangeably. You can find this number on the bottom left portion of your checks or deposit slips. Costpoint offers Lookup, Find, or Query functionalities to assist in selecting the correct Bank ID.
It’s important to note that a single Bank ID can be associated with multiple bank accounts. For example, both a checking and a savings account at the same bank will share the same Bank ID but have distinct account numbers.
Upon entering the Bank ID, Costpoint automatically populates the adjacent non-editable field with the corresponding bank name, sourced from the “Maintain Banks” screen. Any modifications to the bank name must be done directly in the “Maintain Banks” section of Costpoint. The bank name displayed here is automatically printed on blank laser checks for identification.
Currency
Use the dropdown or lookup to specify the currency in which the bank account is denominated. This is crucial for accurate financial tracking and reporting, especially for multinational companies dealing with multiple currencies.
Bank Abbr Desc (Bank Abbreviation Description)
While a single character is technically sufficient, providing a meaningful description of up to 30 alphanumeric characters for the bank abbreviation is highly recommended. This description enhances clarity and is displayed in Bank Reconciliation screens and reports, making it easier for users to understand and differentiate between accounts. A descriptive label like “Operating Checking Account” or “Payroll Savings Account” significantly improves usability.
Blank Chk Addr (Blank Check Address)
This optional field allows you to enter the bank’s address, up to 45 alphanumeric characters, for printing on blank laser checks. This typically includes the city, state/province, and postal code (e.g., “New York, NY 10001”). This address should correspond to the bank against which the check is drawn.
Although optional in the system, it’s best practice to populate this field if you utilize blank laser checks. This information is not needed if you use pre-printed checks.
Account Info: Detailing Your Bank Account
The “Account Info” section focuses on specific details related to your bank account itself, including the account number, routing information, and settings for zero balance checks.
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Bank Acct (Bank Account Number)
Enter the bank account number, up to 17 alphanumeric characters, in this required field. This number is essential and will be used in the “Maintain Bank Statement Info” screen for reconciliation purposes. You must define this account number in advance for modules like Accounts Payable, Accounts Receivable, and Payroll to ensure proper transaction processing.
Fractional Routing No. (Fractional Routing Number)
This optional field allows you to enter the fractional routing (ABA) number, up to 30 alphanumeric characters. This number represents a bank ID code and Federal Reserve district transit symbol.
While not always required by Costpoint, depending on your bank’s requirements, you might need to complete this field, particularly if you are using blank laser checks. It is generally not needed for pre-printed checks.
Zero Balance Check Range, Start and End
These fields are used to define the range of check numbers specifically reserved for zero balance checks. Zero balance checks are often used for internal transfers or specific reconciliation processes. It is recommended to allocate an adequate range for these checks, as checks are nine digits long. If no range is specified, Costpoint automatically defaults to the range 000,900,000 through 000,999,999 for zero checks. Careful planning of this range prevents conflicts with regular check numbering.
Exploring Further Options
Beyond the basic setup, Costpoint provides additional functionalities accessible through buttons within this screen:
EFT Bank Info Button
Clicking this button opens the “Company EFT Bank Info” subtask. This is where you configure detailed information necessary for processing Electronic Funds Transfers (EFT), especially crucial if you are paying vendors electronically. This subtask will likely require information related to your bank’s specific EFT requirements and security protocols.
View Cash Accts Button
Selecting “View Cash Accts” allows you to see the cash account(s) within Costpoint that are linked to the currently configured bank account. This provides a quick overview of the Costpoint Cash Management structure associated with this bank.
Upload Settings Button
This button leads to a subtask where you can upload bank settings, potentially streamlining the configuration process by importing data from external files. This feature can be particularly useful during initial setup or when managing a large number of bank accounts.
Conclusion
The “Maintain Company Bank Accounts” screen in Costpoint is a central point for establishing and managing your company’s banking information within the system. Accurately completing this screen is a prerequisite for efficient bank reconciliation, seamless EFT payments, and reliable financial reporting. By understanding each field and utilizing the associated subtasks, you can ensure your Costpoint system accurately reflects your company’s bank account structure, contributing to overall financial control and accuracy. While the term “costpoint reserve bank” might not directly correspond to a specific feature within this screen, understanding how to manage your bank accounts here is foundational for managing all aspects of your company’s funds, including any reserve funds that may be held within these accounts. Proper setup here ensures that Costpoint can effectively track and manage all your banking transactions.
