Bank Reconciliation

This utility can be used to reconcile the transactions posted to a selected G/L Bank account, against the statement issued by the bank for the same period.
When the statement worksheet has been balanced agreeing the G/L transactions to the Bank, the statement can be "finalized" by clicking the FINALIZE button.
When a statement is "finalized" the Check Reconciliation is also updated moving any reconciled checks from Outstanding Checks to Cash Checks.

The Bank Reconciliation is not restricted to the A/P and G/L checks transactions, the worksheet list includes all transactions posted to this account in the General Ledger.
The report is not restricted by the Divisional Restricted Views assigned to the operator.

Prior "finalized" reconciliation statements can be re-printed from Print Bank Reconciliation Report from history.
Note: If a Bank Reconciliation has been started but not yet completed and closed by the FINALIZE action, the reconciled transactions may be lost if the Run Global Update utility is executed.
The prompt to reconcile the G/L transactions posted to the Bank account are:

ACCOUNT NUMBER

Enter the G/L account number for the Bank that is to be reconciled, or select it from the G/L Account Search window.

Note: This is usually an Asset account for the Bank, but a Liability account can also be entered for reconciliation, which could be useful to balance a Visa account.
Revenue and Expense accounts are not permitted.

Posting Control:

The Bank Reconciliation program is designed to be run by one operator per G/L account at a time.
If a second operator tries to reconcile the same G/L Bank account, a warning will appear on the screen preventing the second user from proceeding.

Multiple Un-Reconciled Dates For Account issue:

The Multiple Un-Reconciled Dates For Account error screen is only generated if there are more than one unreconciled date totals for the same bank account.
The extra transactions need to be deleted before continuing.

Initial Start-Up Reconciliation Options:

This confirmation pop-up is triggered the first time a new bank account is entered to be reconciled, and can be used to define the starting point for transactions already posted to this G/L account.
The options include:

• Migrate Existing Trx:
  This button is only provided if your firm has ever used the former Account Reconciliation program for this G/L account, and can be used to convert existing reconciled periods to the new process.

  Click MIGRATE to recognize and apply any previously reconciled transactions from the old Account Reconciliation program for this G/L account, creating multiple "finalized" statements by month from the reconciled transactions, that can then be used in this Bank Reconciliation utility.

  The date of each migrated statement reflects the later date of either the month end for the date of the G/L transaction, or the month end of the month before the 'reconciled date' of the transaction.

  Reconciled statements resulting from the migration can be printed from Print Bank Reconciliation Report.

  Note: This migration is best suited to companies that have been using the old Account Reconciliation consistently.
  It may not be appropriate for firms that have employed it irregularly or for only a short period, as the migrated data will be incomplete and could be misleading.

• Set Starting Trx For New Reconciliation Period:
  This button is only provided if your firm has not used the old Account Reconciliation program for this G/L account, and can be used to set the starting point for the reconciliation period.

  Click AUTO REC to set a cut-off date and to flag any transactions prior to this date as reconciled as of the end of the month of the transaction.
  This provides the ability to start using this Reconciliation utility at a preferred date.

• New G/L Account:
  Click START NEW to ignore the status on any previously reconciled transactions from the old Account Reconciliation program.
  A catch-up reconcile statement may be required to flag "old" transactions as reconciled before attempting to reconcile the first real bank statement.

LAST RECONCILED DATE

This date is maintained by the software displaying the last date that reconciliation for the this G/L account was "finalized".

BANK STATEMENT DATE

Enter the date on the statement supplied by the bank.
This becomes the end of the current period to be reconciled, so that all unreconciled G/L transactions before this date are displayed to be considered for reconciliation.

Changing Bank Statement Date:

This field is disabled and cannot be modified if a bank reconciliation has been started for this G/L account and any details have already been checked as reconciled.
The current transaction list is displayed and can be completed.

Note: If this date does need to be corrected, click the CLEAR ALL button to remove all check flags and click ACCEPT to exit, releasing the lock on the Bank Statement Date field when the utility is re-accessed.

Reversing a Reconciled Statement:

The last "finalized" statement reconciliation can be re-opened by entering the Last Reconciled Date in the Bank Statement Date field.
Confirmation is required to remove the finalization freeze. Existing transaction reconciled flags are maintained.
If required to restart the reconcile process completely for the restored transactions, click the CLEAR ALL button to remove all the reconciled flags.

When a statement is reversed the Check Reconciliation is also updated moving the previously reconciled checks on the statement from Cash Checks back to Outstanding Checks.

Note: Only the last statement can be re-opened, so if access to an earlier statement is required, each must be reversed in turn to gain access to the older statement.

NEW STATEMENT BALANCE

Enter the ending balance for this date from the statement supplied by the bank.

CALCULATED STATEMENT BALANCE

This value is maintained by the software, and is calculated from the balance on the previous statement, plus any current reconciliation receipts, less any current reconciliation payments.
This total changes to reflect the dollar difference of the transactions as they are reconciled.

OUT OF BALANCE

This value is also maintained by the software and reflects the discrepancy between the New Statement Balance and the Calculated Statement Balance.
This total changes to reflect the dollar difference of the transactions as they are reconciled.

This value must be reduced to zero to balance the reconciliation before it is considered complete and becomes eligible to "finalize".

Resulting Transaction Worksheet:

All General Ledger transactions posted to this G/L account for all divisions that are dated before the Bank Statement Date and are not yet reconciled, are displayed as follows:

SEQ

The sequence number tracks the record number in the table.

RECONCILE

Type Y (Yes) for each G/L transaction that matches a transaction on the corresponding Bank Statement for this period, to flag the transactions as reconciled.
The Calculated Statement Balance and the Out of Balance values will be updated to reflect the reconciled dollar amounts.

Type N (No) for each G/L transaction that is not listed on the Bank Statement that is currently being reconciled.
These transactions will then be considered outstanding when the reconciliation is "finalized" and will appear on the transaction list for the next statement.

DATE

This is the G/L posting date of the transaction.

SOURCE

This is the information saved as the source of the transaction.
e.g. invoice#, check#, journal#, cash balance from Daily Close

DIV

The division of the posted transaction displays.

REFERENCE

This is the information saved as the reference on the transaction.
e.g. customer name, vendor name, DBR# for cash balance posting, journal reference

RECEIPT

Any value that increases the bank account is displayed in the Receipt column.
e.g. customer payment, cash deposit, bank deposit

PAYMENT

Any value that reduces the bank account is displayed in the Payment column.
e.g. payment to vendor, payroll payment, amount remitted

TOTALS

The totals for Receipt and Payment transactions that are checked as reconciled for the period are displayed.

Discrepancy Caused By Missing G/L Transactions or Rounding Issues:
Rounding issues that prevent the Bank Reconciliation from balancing can be addressed in the Fix GLGL Rounding Issues utility.
If there are items on the Bank Statement that do not appear in the G/L transaction worksheet list, the missing postings need to be entered and posted to the G/L in order to balance the statement.
These postings could be completed on another session, and then click the REFRESH button on the Bank Reconciliation screen to include the new transactions in the worksheet for reconciling.
Note: If the G/L transactions have actually been posted, but are dated after the statement date they are will not appear in this list.
To reconcile the statement the late "date errors" will have to either be reversed and re-entered in the current statement period to fix the G/L, or else the bank reconciliation process could be re-started with a New Statement Balance that reflects the Bank Statement balance minus the missing G/L transactions.
Either way, the Bank Reconciliation cannot be "finalized" until the Bank Statement total matches the reconciled G/L transaction total.
Note: If the New Statement Balance was adjusted to allow for the late "date errors" to complete the reconcile process this month, those same "date errors" need to be reconciled on a future statement.
e.g. The New Statement Balance for next month's statement could then be adjusted to accommodate and clear them.

Finished?

Click the ACCEPT button at any time to save the reconciliation worksheet in progress, with the plan to return to complete it and "finalize" it later.

The CANCEL button is disabled as any changes to the Reconcile column must be manually reversed if required.

ACTIONS:
Additional actions provided by buttons on the Bank Reconciliation screen include:

• View Expanded Transaction Record:
  Click the EXP/CON button at the bottom of this screen to expand the G/L transactions providing a window to view all "related" G/L transactions based on the posting date, I.D. and reference values, and to display the Detail comment associated with the transaction, and the posting function.

• Flag All Transactions as Reconciled:
  Click the SET ALL button to automatically set the Reconcile flag to Y (Yes) for each transaction for this account in this reconciliation period.
  Individual transactions can then be changed to N (No) manually as required.

• Remove Reconciled Check Flags:
  Click the CLEAR ALL button to set the Reconcile flag to N (No) for all transactions for this account in this reconciliation period.
  Individual transactions can then be changed to Y (Yes) manually as required.

• Print a Reconcile Statement:
  Click the REPORT button to generate a list of the cleared payment and receipt transactions, and a list of the outstanding payment and receipt transactions, with a totals summary for the statement currently in progress.
  This button is only enabled when the Out of Balance field does not yet equal zero, indicating that all transactions are not correctly reconciled.
  A printer can be confirmed or re-selected from the Printer option located on the menu bar at the top of the screen.

  To re-print any "finalized" statement transactions, use Print Bank Reconciliation Report.

• Complete and Close a Reconciled Statement:
  Click the FINALIZE button to accept and close the reconciliation worksheet for a balanced statement.
  This button is only enabled when the Out of Balance field is equal to zero, and the New Statement Balance equals the Calculated Statement Balance indicating that the Bank Statement and the G/L Bank Account agree.

  The reconciliation report prints as outlined in Print Bank Reconciliation Report.
  A printer can be confirmed or re-selected from the Printer option located on the menu bar at the top of the screen.

  After confirmation that the report is correct, the statement reconciliation is "finalized" and the Check Reconciliation is automatically updated moving any checks reconciled in the Bank Reconciliation to clear them from Outstanding Checks to become Cashed Checks, dated reconciled as of the statement date.
  The Check Reconciliation - Outstanding and Cashed Checks - only tracks checks posted from the following sources:

  Post G/L Manual Checks
  Post G/L Computer Checks
  Print A/P Check Register & Post
  Direct Payments

  Fail to Update Check Reconciliation:

  • An Outstanding Check is not automatically moved to Cash Checks if there are multiple checks in Check Reconciliation for that G/L Bank that have that same check number, date, and payee name.
    
  • Outstanding Checks can not be moved to Cash Checks if another session is locking Check Reconciliation at that time.
  In both situations checks can always be cleared manually in Check Reconciliation.

• Update the G/L Transaction Worksheet with Recent Postings:
  Click the REFRESH button to re-display the G/L transactions for this account, including any newly posted transactions in the period.

• Export/Import Action to Update the Reconcile Flags displayed on the Bank Reconciliation screen:

  • Generate G/L Transaction Spreadsheet Populated with Existing Data:
    Click the EXPORT button to output the details listed on the screen to an Excel spreadsheet.
    The reconcile flag for appropriate records can be set to Y or to N (capital letters) or to blank where blank is no.
    When the flags are set, save the data to a tab-delimited text file in preparation for re-importing the records.

  • Update the Bank Reconciliation Screen with the New Flags:
    Click the IMPORT button to select the saved tab-delimited text file to be imported from the Select a File to Load window. Only the 'Reconcile' values will be updated.
    The import file must be for the same account as the source export file and any records that no longer exist or any records that have been changed since the export will be output to an error report and the import will fail entirely.
    When all the entries are valid a spreadsheet report is returned and the option is provided to update the 'Reconcile' values in the Bank Reconciliation screen.

    Note: If there are "DO NOT MATCH" errors that appear that they should match, contact Texada Client Services to investigate rounding issues where there are greater than 4 decimal places on the transaction.