Using the Wrong Cleared Date Distorts Your Outstanding Cash Picture
ACH and wire transactions often create timing confusion in MIP® because the transaction is entered before the bank actually posts it. If the cleared date is set to the creation date instead of the bank post date, the item appears cleared earlier than it should. That affects outstanding listings and makes it harder to explain why cash activity does not line up with the statement.
Using the actual bank post date as the cleared date keeps timing consistent with the bank. Outstanding reports remain accurate, and reconciliations reflect when cash truly moved rather than when the transaction was keyed. This distinction matters most when reviewing cutoff periods, investigating variances, or supporting reconciliations during audit or management review.
Teams that align cleared dates to the bank tend to spend less time explaining timing differences because the system already reflects reality. The reconciliation process becomes more straightforward, and reports tell a cleaner story without added notes or workarounds.
This video is for accounting teams handling ACH and wire activity who want their cash reporting to stay accurate across periods. It is not intended for organizations that rely on entry dates to explain timing issues after the fact.
McGovern Consulting Group provides MIP Accounting® Training and Implementation Services. We focus on transaction timing because small date choices have outsized effects on reporting and reconciliation.
If you want your cash activity to line up cleanly with the bank, schedule time with us to review your reconciliation approach.
https://mcgoverncg.com/schedule/
If you prefer to build understanding first, free MIP® fund accounting training is available here.
https://www.freemipfundaccountingtraining.com/
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