Bank Reconciliation Preparation

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

Three automatic sources for bank reconciliation entries are provided. These sources are displayed in the Ref Type field in the grid:

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

How VAT is Handled During Reconciliations

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.

Additional Ways to Use the Bank Reconciliations Form

Use the buttons on the form as described here:

Click Bank Addresses to open the Bank Addresses form with the bank address information displayed for the currently selected bank code.
Click Reconcile to mark the selected records as reconciled, setting the reconcile date to the "As Of" date value. This button is only enabled when the starting and ending balances match. New entries can be created in the grid for adjustment transactions to get the starting and ending balances in line.
Click Unreconcile to mark the selected records as reconciled.
Click Select to mark all records in the grid as selected.
Click Unselect to remove the selected check on each record in the grid.

For each row of the grid, if the Service Management amount is different than the amount shown by the Bank statement, the Adjustment Account can be populated. Upon reconciliation and adjustment, an entry is created and posted to the journal for the difference between the two amounts. But, adjustment accounts are no longer required for records out of balance; they can be selected to enable the Reconcile button to reconcile valid records. The invalid records are ignored during posting and remain as unreconciled after the routine finishes.