Bank Reconciliations

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Bank Reconciliations

Purpose:

Every month when the statement comes from your bank, you should compare it with the BSC Food Distribution records to make sure that they match and that you have entered all transactions into your accounting system. You do this using the Bank Reconciliation form.

Usage

1- Open the Bank Reconciliation form by clicking on Accounting/Bank Reconciliation

2- Press the Search Button to the right of the Bank Account field. Select the Bank Account you want to reconcile.

3- Enter the Statement Balance in the “Statement” Field. On the printed statement sent to you by your bank there should be a statement ending balance, the balance in your account after all the deposits, checks, and other transactions have been recognized.

4- Enter the Statement “Start Date” and “End Date” The statement sent to you by the bank will have a date on it, telling the last date for which the statement is valid.

5- Book Balance will be calculated by taking the System Account Balance and subtracting all outstanding Credits adding all outstanding debits.

6- The Total Credit field will show you the sum of all Deposits and Credit OS from the Grid

7- The Total Debit will show you the sum of all Debits in the Grid.

8- Enter Any Interest Income.

9- Change the Account for Interest Income from the Default that was entered in the Company Setup if necessary.

10- Enter Bank Charges information. Enter the actual amount of any bank charges as printed on the statement from your bank. These are things like finance charges, checking fees, ATM fees, etc.

11- Change the Account for Bank Charges from the Default that was entered in the Company Setup if necessary.

12- Select the Items to Reconcile by Clicking on the “Deposits”, “Debits” or “Credit Os” Radio Buttons.

13- When you make one of those choices the grid will show you a lookup of not cleared transactions that are between the statement’s start and end Date.

14- Choose which credits / debits have cleared. You do that by clicking on the button in the “Clear” Columns

15- If the Real amount of the Credit and Debit was different than the original one, you can enter that number in the “Real Amount” field and select an account in the GL field to which the difference will be applied.

16- As you clear the transactions you can see how the Credit O/s and Debit O/s Numbers decrease in the right side of the Bank Reconciliation Form

17- The “Un-reconciled” is calculated as the difference between the Bank Balance and the Statement Balance. If the resulting value is zero, then everything is good and matches with the bank's statement. If the Difference is not zero, however, then there is some error; you should go over the bank's statement carefully to find where the mismatch is located, and then inform your bank of the error. If the discrepancy is because of an internal error you can enter a bank transaction to correct it.

18- The system will not let you post a transaction if the Un-reconciled amount is different than Zero

19- The End Book Balance comes from the information you entered in the Statement Balance field at the top of the form.

20- Press the Print Button to get a summary of all operations in the Bank Reconciliation

21- Press the Post Button to post your transaction if everything looks ok. When you post the transaction, the items in the grid will disappear as they are reconciled.

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