Reconcile Bank Statement
The purpose of this program is to reconcile your bank statement with your cash account. First, enter the cash account number and bank statement information, then mark deposits and checks as cleared. This information gets recorded to allow exiting and re-entering reconciliation in order to make adjustments. Once all transactions from the bank statement are marked cleared and the balance difference is zero the reconciliation is complete.
Bankbook -> Processing -> Reconcile Bank Transactions
Select the Reconcile application from the process window.
The following options are available:
- Enter the data requested on the screen
To exit press the ESC or F10 key when the cursor is positioned for entry of the first field on the screen
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.
Enter Cash Account number to be reconciled. This account must already exist in the Bank File. The Bank statement entry screen will be displayed. When entering for the first time only the opening statement information will be shown. Make any necessary changes and enter the ending statement information. This information will be updated in the Bank File to allow re-entry without having to re-enter the data.
Note: It is optional to enter the Service Charge and/or Interest Earned information. If this information is left blank then you must make the appropriate transactions and post them in order to balance your statement.
If this information is filled in, the following will occur: When the Service Charge and/or Interest Earned amount is entered, records will be created and marked as cleared in the Bank Reconcile File. If Create Journal Entry flag is equal to "Y" a journal entry will be made to the Journal Transaction File, G/L Account Number and transaction date must be entered. These transactions will be processed when the Bank Reconciliation is completed.
This is the Completed Bank Reconciliation screen. The top portion window displays deposits and checks and the bottom portion shows the summary of transactions marked cleared (*), bank balance and the difference balance between bank and cleared balances.
4 Checks cleared
2 Deposits cleared. Deposit = 1 batch posting of A/R cash receipts.
1 Deposit in Transit, 9,160.83
To Reconcile Transactions press Return to mark the highlighted line as cleared, i.e., put an "*" in the cleared column, or to un-mark the line putting a space in the Cleared column if it was already cleared. This will update the summary display. Use the arrow keys to bypass records. When the screen displayed has been marked correctly pressPageDown/PageUp to display the next/previous set of records. This will also update the displayed records permanently in the bank Reconcile File.
To Find a specific transaction press F5. A window will be displayed, enter the check number to search for or "DEP" for a deposit then the Deposit Date. This routine will position the screen at the requested transaction. If the transaction does not exist it will position the screen at the next transaction it finds.
To Mark a Range as cleared press F8. This will display a window where you enter the starting and ending check number to mark as cleared. Enter "DEP" in the starting field for will mark all records within the range as cleared whether or not they are displayed, then it will reposition the screen to display the first record after the ending range record. This will not affect records that were previously reconciled, i.e. Cleared Flag equal to "X."
As noted earlier you may exit to make adjustments to transactions. In order to include adjustments in the Bank Reconciliation the Merge routine must be run again with the same data range. When you re-enter your changes will be there and you may continue where you left off.
When the Difference balance is zero this means that your Bank Statement balances with your Cash Account. At this point press F1 to finish the Reconciliation process. The records marked as cleared will be updated with the date-reconciled record. The A/P and P/R Check Reconciliation corresponding check records will also be updated with the date reconciled. The Bank File will be updated with then new bank statement balances and dates for the next month's reconciliation.
If the Difference balance is not zero and you wish to continue at a later time, press escape to exit. You will not lose any information entered. When you are ready to start the reconciliation again, simply enter the account you were working with.
If the difference balance is not zero and you press F1, (done), a message will popup notifying you that the check register does not match the bank statement. Here you can press “Return” to continue the reconciliation or “Esc” to exit and adjust for incorrect dollar amounts.
When you have completed reconciling your check register to your bank statement and press F1, (done), the system will popup a message asking if you wish to the print reconciliation reports. If you select “Y”, you will be asked if you want to print a summary only and uncleared detail only.
When you press F10 to finish the Reconciliation Process you are given the option to print the Reconciliation Reports. If you choose to print the reports, you are asked, "Print Summary Only?", enter "Y" to print only Uncleared Detail. If you do not print the reports at this time you may still print them by selecting the summary and/or Detail options from the Bank Reconciliation menu.
If you selected “N” to not print prints, the system provides reporting features for the last Reconciliation completed. This is also useful when you want additional copies or both a summary and detailed reconciliation report.
The Summary Report prints the Cleared Transaction information to give the Ending Balance of the Bank Statement, then prints the Uncleared Transactions as of the Reconciliation Date with the Cash Balance, followed by the Uncleared Transactions after the Reconciliation Date giving the Ending G/L Cash Balance.
The Detail Report prints a detailed listing of the summary report but does not tie back to the G/L Ending Cash Balance.