This article documents how to reconcile bank accounts.
Pre-requisites
Step-by-Step Guide
- Navigate to the Bank Reconciliation (Payables -> Payment -> Bank Reconciliation or Ledger -> Utilities -> Bank Reconciliation)
Bank Reconciliation
Upon entry all open bank reconciliations will be displayed for the company you are currently in.
Click New to start a new bank reconciliation
Select the Bank Account Code from the drop down.
Select the Accounting Period from the drop down.
The Opening Balance will pull from the previous periods bank reconciliations Closing Balance.
If this is the first Bank Reconciliation for this bank, you will enter the Opening Balance as it appears on your bank statement.
Bank Closing Balance – enter the ending balance from the bank statement
Wire Transfer – enter any Wire Transfers that have taken place that have not been recorded within the system.
Open Date – Enter the beginning statement date. (will automatically populate from the previous periods bank reconciliation.)
Close Date – Enter the ending statement date.
Click Save - the screen will populate with unreconciled transactions up thru the Close Date entered.
Deposits:
The Deposits tab will list the deposits entered from the Accounts Receivable – Manage Deposits routine.
Click on the Detail check box and the individual customer payments within each of the deposits will be listed.
Click in the check box to mark the individual payment as bank reconciled as it appears on your bank statement.
As you mark deposits as reconciled, the value on the Deposits tab and the Deposits total will update with the total deposits marked as reconciled.
The Check All box will mark all deposits as reconciled.
Payments:
Click in the Payments tab and all unreconciled payments from the Accounts Payable module thru the Close Date will display.
Click in the check box to mark the individual payment as bank reconciled as it appears on your bank statement.
As you mark payments as reconciled, the value on the Payments tab and the Payments total will update with the total payments marked as reconciled.
The Check All box will mark all payments as reconciled.
Upload Checks – Will automatically mark checks as reconciled from a file.
GL Distribution:
This screen populates with transactions generated thru the journal entry routine within the Ledger module that affect the cash account of the bank. It will also include any deposits that were returned thru the Accounts Receivable module.
The transactions that affect the Cash account for this bank are listed in the bottom portion of the screen.
To mark these transactions as reconciled you will highlight the transaction and Click the Assign button
This moves the transaction from the bottom to the middle of the screen. This designates the entry as reconciled.
If you want to change the entry to unreconciled, highlight it and hit the Delete button and it will move back down to the bottom of the screen.
As you mark GL transactions as reconciled, the value on the GL Distribution tab and the Adjustment total will update with the total GL transactions marked as reconciled.
You can also create Journal Entries as needed by clicking on the Journal Entry button.
It takes you directly into the Journal Entry routine within the Ledger module to create an entry. Once done, simply Close and you will return to the Bank Reconciliation routine.
Once you have marked all transactions as reconciled as they appear on your bank statement, you should see an Activities Difference of zero.
This acknowledges that the Bank Reconciliation is in balance with your bank statement.
You can now mark this bank reconciliation as complete by clicking on the Mark As Reconciled button.
Click Save
Now the fields should be grayed out and no modifications are allowed. You will notice the Mark As Reconciled button has changed to Mark As Open.
If you need to re-open the bank reconciliation you can by simply clicking on the Mark As Open button.
You can print your bank reconciliation by clicking on the Print button.
Please note you must have the Detail check box unchecked on the Deposits tab in order to print.
Following is a sample layout of the report.
