How to reconcile your accounts

View - Accounting - Bank Reconciliation

By using Bank reconciliation you can check whether the bank statements cohere with entries posted in your accounts. This function will help you to find and mark entries in the Financials. The system will also calculate and compare the Reconciled figure with the Closing balance from the bank statement as you reconcile the entries.

How to reconcile an account

Select View - Accounting and Bank Reconciliation.
Click New.
Select the N/C you want to reconcile from the drop-down list.
The first time you create a bank reconciliation for an account, you will also be given the chance to enter the Start date for the account. This will result in all transactions with a journal date prior to the specified date, not being included within the bank reconciliation for this account. In addition, you can also enter the Opening balance for the account if you have not entered it correctly or completely previously. This will in principle be the opening balance on your statement that you wish to begin the reconciliation with, in other words, the closing balance from the previous statement. If, for example, you wish to start at 01.01.2011, then find the closing balance at 31.12.2010 and enter this as the opening balance.
Click OK.
Enter the Date for bank reconciliation, and in addition enter the Reference for the bank reconciliation. This field cannot be left blank.
The fields below Previous Bank statement will be filled out with data from the system. The fields will be empty if you have not made any previous reconciliations, or entered Start date/Opening balance.
Enter the Closing balance in the field for this. The balance is located on the bank statement.
If you have previously reconciled the account in the program, the system will include the new closing balance from the closing balance on the last bank reconciliation, so that the amount that shall be reconciled is shown under Non-reconciled figure in the bottom right of the window.
Click New in the lower half of the window, to retrieve the various non-reconciled transactions for the selected account from the nominal ledger.
In the window that displays, you can mark transactions one by one, as you reconcile with the account printout, or click Select all to reconcile all of the transactions that are displayed within the list.
You can enter a date filter in the top of the window if you wish to display transactions with a journal date within a certain period.
Note! No automatically generated opening balance journal will be displayed within the list.
Tip! Click on the print icon in order to print out a list of the transactions, or click on the drop-down list beside this icon to export the entire list to Microsoft Excel.
Click OK when you have selected the items you want reconciled. These will now be displayed within the main window.
If you are unable to reconcile all the items in this window you can click OK. The items that are reconciled will be saved and you can continue later with the other items.
Note! If you have made a mistake, you can delete the item by clicking Delete. The item will then be collected along with the other non-reconciled journals next time you run the bank reconciliation.
As you reconcile items, the items will be summarised under Reconciled figure, at the same time as the Non-reconiled figure is reduced. When the Non-reconciled figure is 0, the reconciliation can be approved. Click on Approved to do this.

Your selected accounts have now been reconciled.

When you approve the bank reconciliation, the closing balance will be transferred as the opening balance for the next bank reconciliation. You will be able to see this within the field Closing balance on the right hand side within Bank reconciliation. You can only have one not approved (open) reconciliation per account.

Tip! If you wish to look closer at a journal, you can select it and click Go to journal in order to open the journal in Financials.