Reconciliation is used to verify that the transactions you have entered match the transactions processed and recorded by your financial institution(s) for your bank or credit card accounts. You should perform a reconciliation on each account for which you receive a financial statement.
To enter an account reconciliation, complete the following steps:
Obtain the financial statement for the account you wish to reconcile.
Access the Reconciliations application from the Financial/Cash Manager menu.
Select a Bank Account to be reconciled and press Tab. As you enter a Bank Account in the Type-Thru drop box, the system will find the best match. You can also click on the down arrow at the right of the drop box to display the full list of Bank Accounts. Scroll down the list until you find the desired Bank Account and click to retrieve it for the reconciliation.
Enter the date of the bank statement in the Statement Date.
Optionally, you may enter descriptive text in the Description field.
Enter the bank statement ending balance in the Ending Balance amount field.
Begin clearing transactions in the Deposits & Other Credits tab and the Checks & Payments tab. For each transaction that you select or clear from the bank statement, verify that the transaction amount in the system matches the amount listed on the bank statement.
If the transaction amounts do not match, simply uncheck the Active field in the Reconciliations header section and click on Save to save the work you have done so far. Correct the incorrect transaction amounts or enter new transactions to correct the discrepancy and return to the Reconciliations screen to complete the statement reconciliation.
Enter an interest or other charges from the bank statement in the Other Charge transaction section of the Reconciliations application.
If you enter Other Charge and Interest transactions, a Journal Entry is automatically generated for the transactions. These transactions will be automatically cleared and the Journal Entry Memo field contains the text "Reconciliation other charges." The journal entry date is set to the Statement Date.
When the Difference amount is equal to 0.00, you have reconciled the account with the bank statement and you may click on Save. Make sure you check the Active field if you had previous unchecked this field.