Ledger: Bank Reconciliation |
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Bank Reconciliation
Purpose: Displays bank details for every deposit, withdrawal, and bank fee for a selected bank account.
Definition: Bank reconciliation is a process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.
Go to Ledger > Bank Reconciliation.
See also Ledger > Bank Manger to automatically reconcile your bank.
Hover the mouse over the different menu options. If the cursor changes to a hand (
), then click to go to the subject.
Select Account to Reconcile: Only accounts that is marked as Reconcilable in the General Ledger Accounts Setup will display here.
Description |
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Select Account to Reconcile |
Only accounts that is marked as Reconcilable in the General Ledger Accounts Setup will display here. |
Select between |
Reconciled: Displays already reconciled transactions. Unreconciled: Displays all transactions that you still need to reconcile. All: Displays both reconciled and unreconciled transactions. |
From date To date |
These fields are primarily used for troubleshooting. For example, if the 'Balance on Bank Statement' differs from the actual statement, you can use the date range to identify the date on which the error occurred.
1. Calculate the difference between the 'Balance on Bank Statement' and the actual bank statement. 2. Move the From Date backwards till there is an Opening Difference (Opening Balance Bank and Opening Balance GL differ).
If for example the difference appears for the first time on the 4th then you know that the problem must be on the 3rd 3. Now, show all the transactions from the 3rd and look for the difference. The difference could be a combination of more than one amount, that you calculated in Step 1
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Retrieve button |
Will remove all the checked transactions. If a date range was specified it will retrieve the data |
Unreconciled Report |
To print all unreconciled transactions, click on the Unreconciled Report button. This report tells you which transactions were not reconciled. This report is useful if you have trouble reconciling next month. Each time you reconcile, the previous month's reconcile report is overwritten with the new one. So, if you want to save a record of this reconcile report, either print a copy, or save it by printing to a file. Please print it regularly and especially at year end for auditing purposes. Note - At year-end Please remember to print your Unreconciled Report after you had made all your bank entries for the year and before you went on with reconciling the next year. If for example your year end is on the 28th of February then the Balance on Statement as displayed on the Unreconciled Report must be the same as on your bank statement. For in case you forgot to print the Unreconciled Report - see below Reconcile your bank per hand ... |
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Account Balance |
General Ledger account balance. |
Total Unreconciled |
Sum of all the unreconciled transactions. |
Balance on Bank Statement |
Difference between the Account Balance and Total Unreconciled amounts. This balance must exactly match the balance shown on your bank statement. |
When a transaction matches a transaction on your bank statement, check the relevant checkbox to mark it as cleared. The Balance on Bank Statement will immediately change to reflect the new balance. This balance must exactly match the balance on your bank statement. Compare the amount immediately against the bank statement. If the difference isn't zero, track down and correct the source of the difference.
If a transaction on your statement is not shown on the Reconcile screen, enter it now before you proceed with the reconciliation.
To show already reconciled transactions select 
. Deselect an amount if you want to un-reconcile it.
Reconcile your bank per hand from the general ledger detail.
Should you need to explain the difference between the bank balance in your general ledger and the balance on your bank statement. for in case you forgot to print the Unreconciled Report).
[If you printed your Unreconciled Report, on the bank reconciliation form, after you have done all of your bank entries for the year, and before you continue reconciling the next year, then this step wouldn't be necessary].
1) Get the bank balance from your general ledger by doing an enquiry or from your trial balance on that specific date, for example -R48405 (credit).
2) Get the bank balance from your bank statement, for example -R6022.91 (credit)
The difference between your bank balance and the bank statement is R42382.09 (48405-6022.91). You now want to get a list of a all the amounts that were outstanding on the 28th of February.
Go to Leger > GL Details and filter your form. See image below.
Setting up the filters as in the image above will give you a list of transactions where the GL (general ledger) date was before the 28th, but the actual transaction went through your bank after the 28th. This is useful for situations where you backdated an entry, for example, if you received a telephone bill on the 15th of March and paid it on the 15th but still want to book it in the previous fiscal year.
In the Edit Date field (actual date when the entry was made) filter for >28/02/15. In the Reference field for 03 (the 03 is the month) and all entries already reconciled
Please note that the reference in the Reference Field for e.g. s02-03-2015 is supposed to reflect the date that is on the bank statement. If the reference is not correct, right-click on the row and select Correct this entry, and change the reference to match the bank statement date.
All these transactions should have been unreconciled as of the 28th. In the image above, the amount is R42382.09, which corresponds to the amount you need to explain (48405 - 6022.91).
