Preparing a Bank Reconciliation

The system maintains a transaction history of all activity against the bank checking accounts your company uses. You can view this information using the Bank Reconciliations form, and also prepare bank reconciliations by tracking what has been recorded by the bank.

Summary bank reconciliation records are automatically created when you process entries on these forms:

A/R Payment Posting for payment types: Check, Wire, and Adjustment only
A/R Adjustment Posting
A/R Wire Posting
Returned Checks

Checks that are printed through Payroll and Accounts Payable are automatically recorded, along with checks that have been voided due to a reprint, enabling you to view and reconcile each check. To reflect miscellaneous charges, you must either manually add them through the grid on this form, or record them in the General Journal or a user-defined journal.

Note: You cannot enter post-dated checks until they have been deposited.

One of these sources is shown in the Ref Type field for automated bank reconciliation records:

A/P: The transaction is posted from A/P check or draft printing.
A/R: The transaction is posted from A/R check, adjustment, wire, or draft posting.
PR: The transaction is posted from payroll check printing.
BAL: The transaction is created during the bank reconciliation compression process.

To reconcile and then compress transactions:

To reflect deposits and miscellaneous charges that are not automatically added (see above), you must either manually add them through the grid on the Bank Reconciliations form, or record them in the General Journal or a user-defined journal.
When you receive a statement from the bank, for each reconciled transaction, select Reconciled on the Bank Reconciliations form.
To process all transactions against the current General Ledger cash account, click Balance Compute.
To delete transactions that have been reconciled, run the Bank Reconciliation - Compression utility:
- (Optional) By default, the system compresses transactions through the current system date, but you can enter a different date that is earlier than the date of the last check record you want to compress. This sets the system to know what check number is next in the sequence.
- In the Bank Code field, select the bank code of the bank account you want to compress.
- If you want the system to automatically increment date ranges and re-run reports and utilities, select the Increment Date check box.
- To compress the selected bank code's reconciliation transactions, select Process.

Note:

For A/R transactions, after a payment by check is received for an invoice, you must manually enter the payment in the Bank Reconciliations form. You must enter and post customer checks individually. When each payment is reconciled with the bank statement, the system credits the VAT A/R Received account.
For A/P transactions, after a processed check is reconciled with the bank, the system debits the VAT A/P Paid account.