Create Reconciliation #

1. Navigate to Bank→ Bank Reconciliation.
2. Click Create.

*When creating a bank Reconciliation document, click on Show and select Bank Reconciliation Report. This will generate a report displaying the reconciliation of bank and cash-related accounts for the selected period.

Main Tab #

1. Number – This is the document number, which is generated automatically, but it can be configured to be entered manually if needed.
2. Date – This date represents the moment when the document is created and is automatically filled in during its generation. The date cannot be modified after the document is created, ensuring the accuracy and integrity of the data.
3. Choose the Bank account you want to reconcile. Based on the selected account, the system will load the relevant transactions.
4. Choose the G/L account – The selected G/L account represents an account in the general ledger that is linked to the bank account. It allows for tracking all financial transactions related to a specific bank account, such as deposits, withdrawals, fees, or interest.
5. Period from – When a new bank reconciliation document is created for a specific account for the first time, this date will not be displayed, as all previous dates are taken into account. If a bank reconciliation document has already been created for the same account, the “Period from” date will be set to the “Period to” date of the previous document, with an additional +1 day.
6. Period To – Typically, this is the current date. However, the user has the option to change this date and set it to any other date, according to their needs.

Statement & Ledger #

1. Beginning Balance – When reconciling a bank account for the first time, the beginning balance is set manually according to the bank statement. For every reconciliation thereafter, the beginning balance is automatically carried forward as the previous reconciliation’s ending balance.
2. Deposit (Incoming) – Manually enter the total amount of all incoming payments as shown on your bank statement for the specified period. This includes customer payments, interest earned, cash deposits, and any other amounts credited by the bank.
3. Payment (Outgoing) – Manually enter the total amount of all outgoing payments charged by the bank against your account. This includes vendor payments, cash withdrawals, bank fees, and other debited amounts as shown on the bank statement.
4. Ending Balance is automatically carried over from the bank statement or ledger.
5. Cleared – Refers to deposits or payments that are recorded and fully processed in both the bank statement and the accounting system or records, indicating they have been confirmed and reconciled.
6. Unclear – Refers to a deposit or payment that has been initiated but has not yet been fully processed or confirmed by the bank. It is still pending clearance and will appear as cleared once fully processed.
7. Difference – Represents the variance between different balance sources or totals during the reconciliation process. It reflects any discrepancies that need to be resolved in order to achieve a match between the system’s calculated figures and the manually entered data. A zero difference indicates that all amounts have been properly reconciled. Depending on the context, the difference could reflect issues such as unreconciled transactions, missing entries, or discrepancies between the bank statement and internal records. The goal of the reconciliation is to ensure that all amounts align and the difference reaches zero.

Reconciliation tab #

1. The Reconciliation tab displays the transactions that have been successfully matched and cleared between the bank statement and the accounting records.
2. This tab includes all transactions marked as Cleared, meaning both the bank and the accounting system show matching information, confirming the reconciliation of those specific transactions.
3. It reflects a complete and accurate match between the bank statement and the accounting system, indicating that those transactions no longer require further investigation.

Discrepancies tab #

1. The Discrepancies tab highlights transactions that do not match between the bank statement and the accounting records.
2. These are transactions that show a difference in amounts or do not appear in both systems, indicating that there are unresolved issues requiring further investigation and resolution.
3. This tab is used to identify and address discrepancies, such as missing or incorrect transactions, to ensure that the reconciliation process is complete and accurate.

Service Charge & Interest Earned tab #

The Service Charge and Interest Earned tab is used to record additional items from the bank statement related to bank charges and earned interest that have not yet been recorded in the accounting system. This tab allows the entry of bank charges and interest amounts to the appropriate accounts in the chart of accounts, including the date when the charges or interest were applied or calculated. Each item is linked to the corresponding account in the chart of accounts for accurate record-keeping in the accounting system

Service Charge

1. Date – the date on which the bank charge was applied, according to the bank statement.
2. Account – the account in the chart of accounts where the bank charge will be recorded.
3. Amount – the amount of the bank fee charged for services provided (e.g., account maintenance, transaction fees).

Interest Earned

1. Date – the date on which the interest was calculated and credited, according to the statement.
2. Account – the account in the chart of accounts where the interest income will be recorded.
3. Amount– the amount of interest earned, which the bank has credited to the account (e.g., interest on a positive balance).

Additional tab #

The Additional tab allows for the entry of supplementary information related to the bank reconciliation process, helping to organize and track all relevant data.

1. Responsible person – Enter the name of the person responsible for carrying out or overseeing the reconciliation process.
2. Class – The category of the transaction during the reconciliation process, such as payments, deposits, bank fees, or other transactions.
3. Memo – A field for entering additional notes or comments related to specific transaction details or any further analysis needs.