Overview
This program is used to reconcile bank statements to the company’s corresponding accounting records in the cash account.
- Adjustments to Bank Accounts, such as fees, interest, and penalties, are also entered here.
- Once any variances are ascertained between the bank statement and the company’s records, they will be recorded and posted here.
Prerequisites
Before performing bank reconciliation, Bank Accounts must be set up. All AP, AR, and GL transactions that relate to the bank balance for the statement period must be entered and posted because they must appear in bank reconciliation queries.
Processing
Bank Reconciliation
Navigate to the Bank Reconciliation menu under the General Ledger section of Rootstock Site Map.
- Add a new bank Account: This option allows the user to add a new Bank Account.
- Here users can enter applicable Bank Account Name, Institution, Bank Currency, Associated GL Account, Routing Number, Bank Account Number, and any other relevant information.
- For more details please refer to the article Bank Account.
Bank Account Number: Here user can select a bank account from a list of available bank accounts to add bank transactions, to query bank transactions, to reconcile the balances, and to change the view to a different bank account.
Bank Account Details
This section will display the Bank Account details for the Bank Account Number selected above.
Fields
Company: The Company with which this Bank Account is associated.
Bank Account Number: User-defined Bank Account Number, up to 30 characters in length. Note that number is partially masked for security purposes.
Institution: The Banking Institution that this Bank Account is associated with.
Amount (Bank Account Currency): Account balance, stated in Bank Currency.
Amount (Home Currency): Account balance, stated in Home Currency.
Last Check Number: The last AP check number issued against this Bank Account.
Cash Withdrawals Applicable: When checked, cash withdrawals may be made from this Bank Account.
Checking Account Applicable: When checked, checks may be written against this Bank Account.
Associated GL Account: The GL Cash Account associated with this Bank Account.
Bank Account Name: User-defined Bank Account Name, up to 50 characters in length.
Description: The description assigned to this GL Account.
Bank Currency: The currency for this Bank Account.
Home Currency: The company's Home currency.
Credit Card Withdrawals Applicable: When checked, credit card withdrawals may be made from this Bank Account.
EFT Withdrawals Applicable: When checked, EFT withdrawals may be made from this Bank Account.
Transaction Date: Enter applicable Transaction Date to be used as the "as-of" date.
Add a Transaction
Click on Add Transaction.
Transaction Type: In the drop down menu, the following options will be available:
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All Other adjustments
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Bank Fees/Service charges
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Bank Reports Credit Card Deposit
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Bank Reports Credit Card Payment
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Credit Card Processing Fees
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Interest Income
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Interest Expense
These options will be used to enter transactions that appear on the bank statement but which have not previously been recorded in the GL. Once an option is selected, the following screen will appear.
Enter applicable information and click save. Saved bank transactions will appear in the transactions report when a query is run for bank transactions.
Query Bank Transactions
Click on Query Bank Transactions button for the selected bank account.
In the Query Filter, when the following is selected:
Query for Reconciliation: When checked, this indicates that the query is being made for bank reconciliation purposes. One more relevant item needs to be selected in this section before clicking on Search button.
Query for Check Reconciliation: When checked, Query for Reconciliation is automatically selected, as well as AP Check and AP Voided Check in the Individual Transactions section.
Query for Other Payment Reconciliation: When checked, Query for Reconciliation is automatically selected. Additionally, AP Check, AP Cash Payment, AP EFT Payment (General), AP ACH Payment, AP Credit Card Payment are automatically checked.
Query Reconciling Bank Deposits from Cash: When checked, Query for Reconciliation and AR Cash Deposits from Individual Transactions sections are also automatically selected.
Query for Reconciling Deposits Reported: When checked, Query for Reconciliation is auto selected. Also, AR Credit Card Payment, AR Cash Deposit Variance Single Curr, and AR Cash Deposit Variance Multi-Curr are also automatically selected.
Query for Reconciling Transfers Rec by JE: When checked, Query for Reconciliation and Transfers/Adjustments made by JE are also automatically selected.
The purpose of the above options is to allow users, if they so desire, to tailor the set of transactions displayed.
EXAMPLE Some users may prefer to reconcile AP checks first, then go back and reconcile deposits next, and so on, while others may prefer to see all the transactions they expect to find on the bank statement displayed together.
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Users can also select date range while querying for transactions in Date Range section.
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Additional items can be selected in Transaction Type and Individual Transactions.
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If the check numbers for certain items are known, they can be entered in Check Number section to limit the extent of the search.
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Once the search components have been established, click the Search button. The user will be navigated to the next page, which will show all the transactions that match the search criteria.
Add a Transaction: Select this option to add a bank transaction. Refer to the Add a Transaction entry in this section for further details.
Maintain Transaction: Select a record in the returned search and click Maintain Transaction. Next users will see a screen with details of the selected transaction.
Delete Transactions: This will delete a selected record, but only if it is a transaction that was added in the current session and not yet saved.
Record/Update Transactions: After a selected transaction has been reconciled, click Record/Update Transactions to commit it to the current period’s reconciliation.
NOTE No further edits can be made after Record/Update Transactions have been executed.
Quit: This option will take the user back to the Bank Reconciliation page for the bank account selection.
Reconcile: This option will reconcile a selected record. The Reconciled column will be checked, and the system amount will auto-populate the bank-reported amount, which can be overridden (see 10, Update Amount, below) if the system amount and the bank statement amounts are different.
Un-Reconcile: This option allows the user to undo the reconciliation of a selected item.
Void a non-check payment: This option allows the user to void a non-cash AP payment transaction.
Void a check Entry: This option allows the user to void an AP check-related entry.
Void Payment: This option allows the user to void a Payment Transaction.
NOTE The system will not allow users to perform Void Payment if the selected Bank Account Payment Transaction was uploaded (Uploaded Transaction = TRUE).
Update Amount: Select the desired transaction. Click on the Update Amount button.
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This action will pre-populate the bank-reported amount for the source document.
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The bank-reported amount can be overridden.
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Then click on Reconcile; the user will see a check in the Reconciled column for that item.
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Next, click Record/Update Transactions; if there is a variance between the bank-reported amount and the system amount, it will be recorded at this time.
Change Bank Account
To navigate from one bank account to another, click on Change Bank account. This action will bring the user back to the home Bank Reconciliation page, where the user will have an option to select another bank account from the drop-down menu.
SEE ALSO
Bank Account
