Bank Account Reconciliation Page

On this page:

Menu Path: From Fund Accounting, select Periodic Routines, select Periodic Processing, and then select Bank Account Reconciliation.

Use this page to reconcile bank statements for checks and deposits that have been cleared by your bank.

If you have software version 20.11 and above, refer to the following Bank Reconciliation documentation section.

Reconcile Bank Statements

Following are the functions you can perform in reconciling your bank statements in the Bank Account Reconciliation page:

Load deposits, checks, and journal entries from your database.
Compare items against your bank statement and mark them as cleared.
Enter adjustments to correct differences without affecting your records.
Generate reports showing the results of your entries.
Save your records so you can interrupt a reconciliation and finish it later.
Purge an incomplete reconciliation should you need to start over.
Post a reconciliation once it is completed. This marks cleared records as reconciled and provides a starting balance for reconciling your next statement.
Create journal entries reflecting bank fees charged and interest earned.

Page Sections

The Bank Account Reconciliation page includes two sections for entering setup information and three sections for displaying totals from the records loaded in the page's tabs.

Data Entry Sections

The fields in these sections enable you to enter criteria for loading records and generating journal entries for any interest and fees:

Bank Statement Information

Accepts the bank account number and the beginning and ending dates and balances for reconciling your transactions against your bank statement.

Payments transactions are selected based on Check Date while all other transactions are selected based on Transaction Date.

Interest/Fees

Accepts the amounts of any interest or fees. The system creates journal entries in Fund Accounting based on the amounts entered. Also, the system selects the section's Complete checkbox when you use the Reconcile item. This indicates the reconciliation is closed.

Display-Only Sections

The fields in these sections display totals for reconciling your bank account. The values in the last two sections change as you clear records in the page's tabs.

Transaction Totals	Lists the total amounts of the deposits, payments, and journal entries currently loaded. In addition, the section displays the ending balance, as well as a "book" balance that accounts for any remaining deposits, payments , and journal entries.
Cleared Amounts	Maintains totals as you clear deposits, payments, journal entries, and adjustments. Also displays the beginning balance, interest/fees, and the current reconciled balance.
Uncleared Amounts	Displays totals for all uncleared deposits, payments, and journal entries. Also shows the difference between the statement ending balance and the current amount cleared.

Tabs

The Bank Account Reconciliation page includes the following tabs:

Deposits	Lists deposits for the bank account selected. Deposits are groupings of receipts (Transaction Code 24). For details, refer to Deposits Tab.
Payments	Lists accounts payable checks (Transaction Code 21) as well as manual checks (Transaction Code 20). For details, refer to Payments Tab.
Journal Entries	Lists journal entries (Transaction Code 19) for transactions associated with your bank account. For details, refer to Journal Entries Tab.
Adjustments	Enables you to enter debits and credits to account for differences between your records and the bank statement. For details, refer to Adjustments Tab.
Voids	Lists voided and canceled checks. For details, refer to Voids Tab.

Action Bar Items

After you complete the fields in the Bank Statement Information and Interest/Fees sections, the following items display on the page's Action Bar:

Details	Only displays for the Deposits tab. This item displays the Bank Account Deposit Detail page, which shows the individual receipts associated with a deposit.
Purge	Removes all transaction records from an incomplete reconciliation. This allows you to restart the process, provided you have not used the Reconcile item.
Save	Saves all records in an incomplete reconciliation, enabling you to interrupt the process and complete it later.
Reconcile	Posts a reconciliation. Posting has the following effects: Saves the reconciliation in its current state. Selects the Complete checkbox in the Interest/Fees section, indicating the reconciliation is complete. You cannot access this box once it is selected. Updates each transaction's Clear field with the code R (for Reconciled). Creates journal entries for any interest and fees entered. Prevents changing cleared records in a future reconciliation.
Report	Generates a report on the records currently loaded. For details, refer to the Procedures section.
Search	Enables you to search for records in the Deposits and Payments tabs.

If you have records loaded and then click Back, the system displays a warning.

Click Yes to quit and return to the Bank Account field.
Click No to return to the Bank Account Reconciliation page. If desired, you can use Save to save your records as a file, and then click Back to quit.

Reconcile a Checking Account

In the Bank Statement Information and Interest/Fees sections, complete the fields.

Provided the Bank Account Information table contains valid Budget Unit values, Interest and Fees journal entries are created when the reconciliation is completed and marked as reconciled.
Click OK.
- If a reconciliation file already exists, the file's records load immediately. Proceed to Step 5.
- If this is the first time you are using the Bank Account Reconciliation option, the Starting Transaction Date dialog displays. Proceed to Step 4.
  
  The Starting Transaction Date page only displays for your first reconciliation. Future loads include transactions from the statement period, as well as all uncleared transactions from the original starting date through the statement start date. This depends on whether the Include Outstanding Checks field is selected. Refer to the next step for additional details.
In the Starting Transaction Date page (if applicable), complete the following fields:
- Starting Transaction Date - You may accept or change the default, which is set in the Statement Begin Date field.
- Include Outstanding Checks - If this box is selected (default), the system also loads all uncleared transactions from the original Starting Transaction Date through the Statement End Date.
Click OK to load your records.
When the system completes the load, you can access the Deposits tab.
If no deposits are available, a message displays indicating this. If so, click OK to access the Payments tab. A similar message displays when the Payments, Journal Entries, and Voids tabs do not contain records.
Reconcile your account by clearing transactions in the Deposits, Payments, and Journal Entries tabs. Following are the functions you can perform as part of the reconciliation process:
- To advance from one tab to the next, click OK. You can return to a tab at any time.
- To clear an item in the Deposits, Payments, and Journal Entries tabs, select the item's Clear checkbox.
  
  We recommend using Post Cleared Vendor Checks in Fund Accounting or Post Cleared Checks in Human Resources to clear all checks prior to starting the reconciliation.
  Checks pull into the reconciliation already selected as cleared, which avoids re-clearing if you must purge the reconciliation.
- To correct a difference between your records and the bank statement, enter a credit or debit in the Adjustments tab. This only affects the reconciliation, not your actual records. You should make note of these discrepancies and resolve them in accordance with your usual practices.
- To save your records as a file, click Save on the Action Bar, and then click Yes in the Confirmation dialog. To re-load the file and resume the process, enter the file's bank account number and statement dates.
- To quit without saving your entries, click Back, and then click Yes in the Confirmation dialog.
- To delete all records for the current reconciliation, click Purge, and then click Yes in the Confirmation dialog. This deletes the contents of a reconciliation file but does not affect the records themselves.
- To complete a reconciliation, click Reconcile, and then click Yes in the Confirmation dialog. This updates the Cleared field in the Transaction table for all cleared records with an R (for Reconciled). It also places a checkmark in the reconciliation file's Complete field and creates journal entries for any interest and fees.
- To generate a report on your reconciliation records, click Report. The Bank Account Reconciliation Report page displays. For the procedure, refer below.

Generate the Bank Account Reconciliation Report

You can generate a report at any time during the reconciliation process.

Click Report on the action bar to display the Bank Account Reconciliation Report page.
In the Report Criteria section, the checkboxes are selected by default. To prevent a type of record from being included, clear the appropriate checkbox.
In the Item Types field, select:
A - All - to include all transactions whether cleared/corrected or uncleared/uncorrected.
C - Cleared/Corrected Items Only - to include transactions that are cleared and adjustments marked as corrected.
U - Uncleared/Uncorrected Items Only - to include transactions that are uncleared and adjustments marked as uncorrected.
Click OK.
In the Print window, specify how to generate the report, and then click OK. The report's default file name is bnkacctrcn.rpt.

Fields

Bank Statement Information Section

All fields in this section are required. The information requested should be entered as shown on your bank statement.

Field	Description
Bank Account	Number identifying the checking account being reconciled. The field's drop-down list includes the accounts set up in the Bank Account Information table. This table contains a separate record for each Fund/Account combination associated with a bank account. The system uses the account you select to identify and load the appropriate deposits, checks, and journal entries. The account number also identifies the Fund/Account combinations for the journal entries created for interest and fees when you use the Action Bar's Reconcile item. For details, refer to the descriptions of the fields in the Interest/Fees section.
Statement Begin Date	Starting date of the statement period. For an initial reconciliation, enter the begin date from your bank statement. If an unreconciled file exists for this bank account, the system defaults the file's begin date. If a previous file was reconciled and no unreconciled files exist, the system defaults a date one day greater than the end date of the last file reconciled. You can replace the default date if needed.
Statement End Date	Ending date of the statement period. If this is your first reconciliation, enter the statement's ending date. If an unreconciled file exists for this bank account, the system defaults the file's end date. If a previous file was reconciled and no unreconciled files exist, the system adds 30 days to the end date of the last file reconciled. If needed, you can replace the default date in these last two cases.
Beginning Balance	Account balance on the first date of the statement period. If a file exists for the statement begin/end dates entered, its beginning balance defaults. You may change this if needed. Otherwise, the field defaults to zero. Enter the statement's beginning balance.
Ending Balance	Account balance on the end date of the statement period. If a file exists for the statement begin/end dates entered, its ending balance defaults. You may change this if needed. Otherwise, the field defaults to zero. Enter the statement's ending balance. This value helps determine the reconciliation balance, as displayed in the Uncleared Amounts section's Difference field:\ Difference = Beginning Balance - Ending Balance

Interest Or Fees Section

All fields in this section are required, except the Complete checkbox. The system checks this field when you finish a reconciliation.

Field	Description
Date	Transaction date for clearing checks. This date is also used for journal entries generated for interest and fees, if any. The default is from the Fund Accounting Profile's Transaction Date field. You may enter another date if needed.
Period	Accounting period for journal entries generated for any interest and fees. The system defaults the current period, as set in the Fund Accounting Profile. You may change this if needed.
Year	Fiscal year to use for journal entries generated for interest and fees. The system defaults the current year, as set in the Fund Accounting Profile. You may change the default but only to the previous year, in which case you must set the Period field to period 13.
Interest Earned	Amount of interest earned by the checking account, as shown on your statement. If the account does not earn interest, leave the field at its zero default. When you complete a reconciliation, the system generates a journal entry for the interest entered here. The system credits the revenue account that applies, as determined by the record in the Bank Account Information table that references your bank account and has its Interest field selected.
Fees Charged	Total fees for account maintenance, returned checks, and other services, as shown on your statement. If no fees apply, leave the field at its zero default. When you complete a reconciliation, the system generates a journal entry for the fee entered here. The system debits the expenditure account that applies, as determined by the record in the Bank Account Information table that references your bank account and has its Interest field selected. The fee is debited against the Cash account in the Fund Accounting Profile.
Complete	Checkbox indicating whether the reconciliation file currently loaded is complete. The system selects the box when you use the Reconcile item to finish a reconciliation. If you retrieve the file later, the box will be selected, and you will not be able to change the records displayed.

Transaction Totals Section

This display-only section provides totals of the transaction records in the Deposits, Payments, and Journal Entries tabs. The section's Ending Balance field defaults the balance from the Bank Statement Information section, while the Book Balance field applies any remaining deposits, payments, and journal entries against the ending balance. These totals do not change as you reconcile your checking account.

Field	Description
Deposits	Total of the deposits loaded in the Deposits tab.
Payments	Total of the checks loaded in the Payments tab.
Journal Entries	Total balance of the debits and credits loaded in the Journal Entries tab: Balance = Total Credits - Total Debits
Book Balance	Balance after the remaining deposits, payments, and journal entries are calculated against the ending balance: Book Balance = Ending Balance + Remaining Deposits - Remaining Payments + Remaining Journal Entries
Bank Ending Balance	Checking account balance, as entered in the Ending Balance field. This should match the balance shown on your bank statement.

Cleared Amounts Section

This display-only section maintains running totals of the transactions you cleared. The transaction amounts are added to or subtracted from the Beginning Balance to determine the value in the Reconciled Ending Balance field.

Field	Description
Bank Beginning Balance	Account balance entered in the Bank Statement Information section's Beginning Balance field.
Deposits	Total of the deposits cleared in the Deposits tab.
Payments	Total of the checks cleared in the Payments tab.
Journal Entries	Total of the credits and debits cleared in the Journal Entries tab. The total debits are subtracted from the total credits to determine this value.
Adjustments Debits	Total of the debits in the Adjustments tab that are marked as corrected.
Adjustments Credits	Total of the credits in the Adjustments tab that are marked as corrected.
Interest Earned	Interest amount entered in the Interest/Fees section's Interest Earned field.
Fees Charged	Fee amount entered in the Interest/Fees section's Fees Charged field.
Reconciled Ending Balance	System-calculated value determined by the following equation: Reconciled Ending Balance = Bank Beginning Balance + Cleared Deposits - Cleared Payments + Cleared Journal Entries - Corrected Debit Adjustments + Corrected Credit Adjustments + Interest Earned - Fees Charged

Uncleared Amounts Section

This display-only section provides a running total of the uncleared amounts remaining in the Deposits, Payments, and Journal Entries tabs.

Field	Description
Deposits	Total of the deposit amounts in the Deposits tab that have not been cleared.
Payments	Total of the check amounts in the Payments tab that have not been cleared.
Journal Entries	Total of the credits and debits in the Journal Entries tab that have not been cleared.
Difference	System-calculated valued determined by the following equation: Difference = Bank Ending Balance - Reconciled Ending Balance