Bank Reconciliation Overview

Caroline Buckland Updated by Caroline Buckland

Introduction to Bank Reconciliation

The Bank Reconciliation module provides an automatic solution to the process of reconciling bank accounts. The main features of the module are:

  • Take-on process for Bank Statement files
  • Automatic generation of bank charge journals in the General Ledger
  • Automatic reconciliation of Bank and Cashbook transactions
  • Option of setting a tolerance difference for automatically reconciling transactions with a value mismatch, and the generation of write-off journals
  • Inclusion of a reconciliation flag and presented date in the accounts payable module for reconciled payment transactions
  • Manual Reconciliation facility for items of differing values and reconciliation codes including automatic generation of write-off journals.
  • Facility to flag transactions as reconciled while waiting for an adjusting entry from the bank
  • Facility to un-match reconciled transactions and reverse adjusting journals
  • Comprehensive report and enquiry functions
  • The Bank Reconciliation process reconciles transactions within the same full GL account code for the AB, Bank Statement and Bank Adjustment Balance Classes. Transactions are flagged as reconciled in the GL, AP and BR modules.

The Bank Reconciliation module is designed to allow the user to match automatically, or manually reconcile transactions between the bank statement and your financial transactions. A Bank Statement can be imported and can automatically generate bank standard journals such as Bank Charges.

On a daily basis, the latest bank statements will be loaded into Bank Reconciliation. This should then be followed by running two automatic reconciliation processes which should pick up as many transactions as possible, to be matched. For any transactions that cannot be matched, manual reconciliation must then be performed.

Let’s review the below process flow to understand how Bank Reconciliation works:

Was this article useful?

Bank Reconciliation Menus Explained

Contact