Reconciliation

The purpose of reconciliation is to locate any mistakes that you or the bank may have made.

Reconciliation Procedure

Heading	Description
Date	Optional – allows you to exclude transactions after the date specified from the view, this can ease the process if you reconcile infrequently. In an ideal situation you should reconcile frequently and the number of outstanding transactions should not be a problem
Statement End Balance	Required - this is a double check to make sure that the balance matches the bank statement. If you make mistakes in Bank reconciliation, it is difficult to rectify so your best option is to avoid mistakes and use this double check
Difference	Displays the difference between the statement end balance and the current reconciled balance
Tp	Transaction type see table below
PP PA SR SA JC JD BP BR	Purchase Payment Purchase payment on Account Sales Receipt Sales Receipt on Account Journal Credit Journal Debit Bank Payment Bank Receipt
No	Transaction Number
Date	The date of the transaction
Ref	The reference of the transaction
Details	The description of the transaction
Payments	Payments out of the account
Receipts	Receipts into the account
Grp	Identifies grouped transactions
Opening Balance	The opening balance of the bank account
Uncleared Items	The total value of items awaiting reconciliation
Book Balance at Date	the balance of the bank account at the date specified
Reconcile Balance	this shows the current reconciled balance, you can check this against the bank statement as you go, at the end of each day

2. Find and click the first item on the statement in the list of outstanding transactions on the screen - the Difference and Reconcile Balance data change to reflect the selected item

3. Continue with the above procedure until you reach the end of the first day on your statement and you have a balance figure, check this against the reconcile balance

· To help you find transactions you can use the find button to locate transactions by value, transaction number, reference , account reference and by details

· If the transaction does not exist you can create an entry by using the adjustment button

· If you need to look something up you can do so by minimising the window and then return to the window later, you do not have to exit

· If you are working with a very large number of outstanding transactions, you can sort them by any of the column headings by clicking on the appropriate heading. NOTE sorting by a heading will clear the existing selections, do not use this option part way through a reconciliation

4. When the final transaction on the bank statement is highlighted then the Statement end Balance and the Reconcile Balance will match, there will be 0 in difference and you can save the reconciliation, when you next enter reconciliation the opening balance / reconcile balance will be the previous end balance

v Grouping, because when you bank multiple cheques the bank make just one entry on the statement, matching receipts can be difficult. to make life easier you can group receipts with the same reference and date (this is done in Settings, company Preferences, Parameters, Group Items in Bank Rec {check box}.)

v If you use grouping, and you have two separate bankings on the same day, make sure to use a different reference so that they appear as two separate bankings in the bank rec. NB Blank references are not grouped