Reconciling is necessary when a company's own records show a difference of the balance of cash at bank from that in the bank statement. Differences may occur. For example, cheques are drawn but yet to be banked or deposits/payments already made but yet to be recorded by either the bank or company.
Note: Discrepancies between account balances sometimes happen due to the difference in timing when the data is entered into a bank’s system and when it is entered into a company’s system. The aim of reconciliation is to ensure that discrepancies are not due to timing but due to error(s).
The information in this document is based on product update 399. If you have versions lower than this, certain features explained here will not be applicable.
Type or select the bank account number that appears on the statement.
In Statement, you will see the statement number that is recently entered for reconciliation. This may or may not be the latest number as it depends on the month of reconciliation. For example, if you skip June and reconcile July, and then go back and reconcile June, the statement number would be from June and not July, which is not the latest. You can edit this number.
Type or select the statement date.
Type the opening balance from the statement. This field defaults from the closing balance on the most recent statement. For example, if you reconcile a statement for May, skip June, reconcile July, and then reconcile June, the June statement will show the closing balance from July. To avoid confusion, you should reconcile statements in date order. You can edit this number.
Type the closing balance from the statement.
Click OK to save the information.
Click Cancel to cancel the entries made and to exit.
Select a statement line and click Open. You will see the following screen. The fields in the screen below are the same for both the Transactions and Balance tabs.
The bank name is automatically taken from the selected statement.
The bank account number is automatically taken from the selected statement.
The statement number is automatically taken from the selected statement.
The statement date is automatically taken from the selected statement. However, you can type or select the date of your choice.
Select this check box to display unreconciled transactions before and up to the Statement date.
The opening balance is automatically taken from the selected statement. However, you can edit this amount.
The closing balance is automatically taken from the selected statement. However, you can edit this amount.
The Unreconciled: Amount is automatically taken from the selected statement. It displays the differences between the unreconciled amounts from the closing and opening balances. This field will adjust if you change the amount in opening balance or closing balance.
The Reconciled Balance is automatically taken from the selected statement. It displays the total amount to be reconciled net of any transactions selected in this application. This field will adjust if you change the amount in opening balance or closing balance.
Select how you wish to display the data. You can choose to group by Details or Deposit number.
Click Calculator to calculate the unreconciled amount and reconciled balance.
Transactions previously reconciled with the statement are checked. On any view (Cash in, Cash out, or All), click the check box under the Reconciled column to reconcile a transaction against the statement. You can clear the check box to unreconcile a particular transaction.
Click Cash in to view all the receipts.
Click Cash out to view all the payments.
Click All to view both cash in (receipts) and cash out (payments).
Click Select all to reconcile all the transactions at once. When the Parameters screen opens, type or select the Date and type the Deposit number range, or select All for all dates and all deposit numbers.
Click Deselect all to unreconcile all the transactions at once. When the Parameters screen opens, enter the Date and Deposit number range, or select All for all dates and all deposit numbers.
Type the information (creditor/debtor code, name, deposited amount, etc.) you wish to search for and click Search. The transaction that matches your search criteria will be highlighted.
Select a transaction and click Details to view further information about the selected cash flow entry.
You will see the following at the bottom of the Transactions tab:
Cash in/Cash out displays the number of deposit/payment transactions.
The Total for Cash in/Cash out displays the cumulative amount that you have selected to reconcile against the current statement.
Unreconciled displays the total amount of all unreconciled deposits/payments.
If you have unreconciled transactions remaining, you will be prompted by the system if you still wish to finish. Click No to return to the previous screen to reconcile more transactions or opt to finish the reconciliation later. If you wish to proceed, click Yes.
Note: You cannot reopen and add or remove transactions to a statement once it is marked as finished.
The Balance tab of the reconciliation screen appears, displaying the statement balance net of unreconciled transactions and comparing this adjusted statement balance with the actual G/L account balance for the statement date.
The G/L date is automatically taken from the selected statement. However, you can type or select the date of your choice.
Select Date if you want to display the balance according to the transaction date or select Reporting date if you want to display the balance according to the reporting date.
Click Calculate to calculate the unreconciled amount and reconciled balance. This screen allows you to compare the bank value to the book value of the actual G/L account balance as of the G/L Date. The G/L Date should match the Statement date.
When done, you then return to the Bank account Reconciliation screen. The statement is marked as finished. You can view the statement and print the Bank Reconciliation Report.
This displays the default currency of the company.
This displays the closing balance from the selected statement.
This displays the amount from outstanding deposits.
- Outstanding: Cheques
This displays the amount from outstanding cheques.
This displays the adjusted statement balance. The amount is derived when you add the closing balance to outstanding deposits and deduct the amount from outstanding cheques.
This displays the account balance in G/L. If the balance is zero, it is likely that you have completed your reconciliation process and that you can finish the reconciliation.
This displays the difference between the adjusted statement balance (Calculated: Bank balance) and the account balance in G/L (Balance). If the Balance tab shows a difference, you will be prompted if you still wish to finish. Click No to return to the Bank account Reconciliation screen to reconcile more transactions or opt to finish the reconciliation later. If you wish to proceed, click Yes.
Note: Extra information on bank reconciliation is stored in bank journal entries. You can repair any inconsistencies found in the database by using the diagnostic tool at System/Check/Diagnose (click Start to start the diagnostic process and click Repair to repair any inconsistencies) and still retain the information on the bank reconciliation.
Click Print to print the reconciliation statement.
Click Refresh to update the data according to the defined criteria.
Click Back to return to the previous screen. Once this is clicked, it changes to Zoom. Back is only enabled if you group the data by Deposit number and click Zoom.
Click Export to export the reconciliation statement to Microsoft Excel.
Click Details to view the selected transaction in the cash flow entry screen.
Click New to open the Bank Entry screen where you can enter transactions that appear on your statement but not in Exact Globe such as bank fees and interest payment.
Click Reconcile to reconcile or unreconcile the selected entry. Once an entry has been reconciled, a green check mark will appear under Reconciled.
Once you have reconciled all the deposits and payments, click Finished to complete the statement. If the statement is not fully reconciled, a message "Your statement is not fully reconciled. Do you still wish to Finish?" will pop up. Click Yes and it will be marked Finished. Click No and you will come to the Balance tab to do the adjustment.
If you are not finished with the reconciliation process and wish to return to the statement at a later time to reconcile additional transactions, click Finish later to return to the previous screen. You can resume work on the existing open statement later.
Click Close to exit.