The Reconciliation function is located in the Accounting module under Cash Management. Each Bank Account (Operating, Miscellaneous, and Payroll) should be reconciled on a monthly basis. The process of reconciliation is performed to ensure the month ending General Ledger balances match/balance to the month ending balances on the bank statements.
The reconciliation process has three options to view your transactions. Use the method that best matches how the transactions are appearing in your statements.
Standard Reconcile: This is the standard way to use the reconcile page. Use this is each of the deposit types are shown in separate sections of your statement and can be reconciled independent of the other transaction types.
Reconcile All:use this button to reconcile multiple deposit and withdrawals together on the same page, sorted by date. Each amount for each type is shown on a separate row.
Group Reconcile: Reconcile multiple deposits types together on the same page. All transactions are totaled by date, so that only one amount appears for each day.
How to Reconcile a Bank Account
- Select the Accounting module
- Select the Cash Management tab
- Next select the Bank Account to be reconciled (from the drop down menu)
- Select the Reconcile Button
- Confirm the Accounting Period (located in the upper left side of screen) and Statement Ending Date are correct.
- The Accounting Period will automatically default to the oldest unreconciled accounting period.
- On the reconciliation summary page, all deposits and withdrawals will be color coded as white, green, red or yellow.
- Cells highlighted in Yellow indicates there are pending items for reconciliation whereas Green indicates Reconciled status. Red indicates items being saved as Unreconciled.
- The Variance field will recalculate when the statement ending balance is entered.
- The Variance field will be highlighted in red if it is not balanced.
- The Variance field must be zero for the reconciliation to balance.
- Pending Deposits and Withdrawals are entries posted in the general ledger that have not been reconciled to the Bank Statement.
- Selecting View Details will list all unreconciled deposit entries.
- Go to Deposits (located below Summary on the left side of the screen)
- Deposits are grouped by E/HID, Cash & Checks, AMEX, Discover, Visa/MC, Other CC’s, Transfer, and Other Deposits.
- Withdrawals are grouped by Checks and Other Withdrawals.
- Groupings will vary based on bank account and EID set-up
- Each grouping that is out of balance will be highlighted as per the color code mentioned in point 5.
- Reconcile each Deposit and Withdrawal grouping by completing the following steps:
- Click on the grouping to be reconciled.
- The Statement Total Amount field will be highlighted in red.
- Select the status as Reconciled. The red highlighted variance would no longer appear in red.
- Most bank and merchant statements provide a summary of total deposits or withdrawals made during the month.
- All unreconciled entries will be listed in the transaction detail.
- Review the transaction detail and select the transactions that are listed on the bank statement.
- There will be a small box on the right side of the screen next to each transaction.
- To select a transaction, click on the box and a checkmark will appear.
- To deselect a transaction, click on the box and the checkmark will be removed.
- Each transaction will have a blue adjustment field (Adj).
- This field allows a reconciling adjustment to be made to correct or adjust the transactions.
- If an adjustment is needed, select the Adj field, enter the required data, and select the Save & Close button. (Required data will have a red vertical line on the left side of the field.)
- If reconciling credit card deposits, select the Add Discount button to create an entry to record credit card discounts posted on the bank statement but not in the general ledger. (Enter all required data and save the entry.)
- Select the Add Adjustment button to create an entry to record adjustments posted on the bank statement but not posted in the general ledger. (Enter all required data and save the entry.)
- Repeat the steps detailed above for all Deposit and Withdrawal groupings until each grouping and Bank Account are reconciled. (If any fields are highlighted in red, the Bank Account is not balanced.)
- Once the accounts are reconciled, changed the status from Unreconciled to Reconciled. Once the reconciliation status is changed to Locked, no adjustments or changes can be made to the reconciliation.