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Bank Reconciliation

How do you Reconcile a Bank Account?

Reconciling your Bank Accounts regularly is essential to keeping good financial records. Reconciliations ensure the monies processed through your bank account/s, matches the data entered into your ERP database.

Note - Your bank reconciliation is effectively an audit of what has actually posted to your bank account. You should never include future dated transactions in your reconciliation. By default the Reconciliation Screen does not include transactions dated after the Bank Statement date. You can turn this option off and display all unreconciled transactions but this should only be used to identify incorrectly dated transactions that need to be corrected prior to completing the reconciliation.

The ERP reconciliation process has been designed to ensure efficiency and ease of use. All reconcilable transactions processed within ERP that affect the Bank Account, i.e. Customer payments (deposits), Supplier payments and cheques, other deposits, payments and journal entries, are automatically loaded into the reconciliation screen upon selection of the relevant bank account and Statement Date. From here it is a simple task of clicking to tick off items appearing on your Bank Statement. Reconciliations can be completed (saved) once the difference between the cleared and ending balance is nil, or held pending completion, ensuring correct figures are maintained. ERP produces detailed reports on what has been reconciled and what has not been reconciled upon the completion of any reconciliation.

Select the Reconcile button within the Banking tab

Select the Bank Account you are reconciling, from the drop-down menu. All deposits and withdrawals relating to the selected bank account will load. The Opening Balance will also load. This should match the opening balance of the Bank Statement you are about to reconcile.

Enter the Statement number as per the Bank Statement you are reconciling. The list of reconcilable transactions will change to those up to or equal to the statement date to ensure post-dated transactions are not reconciled incorrectly. Select the correct date as per the Bank Statement you are reconciling. This will filter the displayed transactions so that only transaction up to the statement date are displayed Enter the Ending Balance as per the Bank Statement you are reconciling. You are able to sort by each column by clicking on the header, e.g. Date. The hand will indicate whether the sort is Up or Down.

To search for a particular value, enter the amount into the Search Amount field, e.g. $588.00 Select Go - The value you are searching for will then be highlighted.

Select the transactions that appear on the Bank Statement you are reconciling by selecting the Ok tick box beside the relevant transactions. Once selected the line will be highlighted to show what you have selected.

You are able to place a reconciliation on Hold. This will save the reconciliation as per the current status, allowing you to complete it later. Note: If you need to amend a transaction it must NOT be ticked when you put the reconciliation on hold otherwise the record will be locked for editing.

Upon selecting the Reconcile button again, you will be prompted with the following message box: Select On Hold Reconciliation OR Select New to Start New Reconciliation (Note: Only one reconciliation per bank account can be placed on hold at any one time) Select the reconciliation you wish to continue with. Select Ok

NB: You are required to enter your Ending Balance each time you re-load the reconciliation.

Continue marking off the presented transactions as per the Bank Statement, until you have reconciled every transaction on the Statement to the data entered into ERP. By marking transactions off in this way, you will clearly identify if there are any transactions that have not been entered into ERP but have been presented at the Bank. Once all transactions are entered and the Difference is nil you will be able to save the reconciliation.

Select Save Select Yes to print the Reports<LinkId=373>. Or select No if you do not wish to print the reports. Select Print to print just the Reconciliation Report Select Print Report to print just the Non Reconciled Report Two Reports will be printed - Reconciliation Report and Not Reconciled Report

Shortcuts Select Mark All to reconcile all the transactions displayed. This can be a useful shortcut if you have more items presented (appearing on the bank statement) than unpresented. In this case Select All and deselect the unpresented items. Select UnMark All to de-select all the marked items.

Completed Reconciliations can be found in the Reconciliation List.

To delete a Reconciliation, open the relevant one and select the Deleted tick-box at the bottom right of screen. Select Save

NB: You can only delete Reconciliations in sequence, i.e. last one first, then back in date order. e.g. If you need to delete a Reconciliation completed at the end of August, and it is now November and you have completed two reconciliations since, then you will have to delete the last two reconciliations completed to be able to delete the incorrect one back in August.

This rule applies to all transactions within ERP. Upon completion of a transaction the previous step is automatically locked-down. e.g. A Customer makes a payment on an Invoice, you cannot delete the Invoice if a payment has been applied. You must first delete the Payment to be able to delete the Invoice.

The deleted Reconciliation can now be found in the Bank Reconciliations List under the Deleted radio button.