Bank Statement Reconciliation - Overview

Bank Statement Reconciliation Overview

This program reconciles the bank statement to the Company’s corresponding accounting records in cash accounts. Bank statements can be reconciled using either of the two methods below. Launching the Bank Statement Reconciliation function will open the Bank Reconcile page to select the Account Number to be reconciled:

• Via upload of bank statement information: See Bank Statement Reconciliation - Process Uploaded Statement. This process allows for the import/upload of bank statements, auto-match, and manual match to transactions. This method is correct when the bank sends a loadable file containing bank statement data.

  • Running balances (Bank Statement Amt, System Amt, Unmatched Amt) are calculated with each reconciled transaction.

  • Auto-Match – the system attempts to match bank and system transactions based on reference and amount. Users can accept or clear auto-match results.

  • Manual Match – bank transactions can be manually matched to system transactions by selection (checkbox).

  • GL Postings are created for matched transactions containing variances.

  • Reconciled transactions can be reversed within the reconciled session.

• Process Statement Manually Bank Statement Reconciliation - Process Statement Manually:  This process allows for checking off systems transactions shown on a paper copy of the bank statement. This is the correct method to use when the bank does not send a loadable file containing bank statement data.

  • Manually enter the bank statement header.

  • Manually select (via checkbox) system transactions as reconciled; Manually add transactions.

  IMPORTANT  Rootstock offers Bank Integration feature that allow users to import their financial transactions directly into Rootstock using Plaid. This streamlines the Bank Reconciliation process by eliminating the need for the manual process of downloading bank statements, creating Bank Account Reconcile upload files, and importing them into the system.

Prerequisites

Financial System Admin >Bank Account  - see related articles below

• If using the Process Upload Statement Method:

  • Set the Bank Account:

    •  Reconciliation Method to Download.

    • A Bank Statement Mapping Tab will be displayed, and the various mappings/translation string fields will be mapped according to the values supplied by the bank.
      
        EXAMPLE  If the bank identifies Accounts Payable EFT Payments as Outgoing EFT in the interface files they send, then set the AP EFT Payment (General) field to Outgoing EFT. 
       

  • The first statement entered for the Bank Account using the process Upload Statement Method has special requirements - see Bank Statement Reconciliation - First Reconciliation.

• If using the Process Statement Manually Method:

  • Set the Bank Account Reconciliation Method to Manual Entry.

  NOTE  

• Variance postings will be posted to the Single Currency Payment Variance Account on AR Control if the Bank Account currency is the same as the company home currency.

• Variance postings will be posted to the Multicurrency Payment Variance Account on AR Control if the Bank Account currency is other than the company home currency.

SEE ALSO
 

Bank Account 
Bank Integration
Bank Statement Reconciliation - Setup Requirements
Bank Statement Reconciliation - First Reconciliation
Bank Statement Reconciliation - Bank Statement Upload
Bank Statement Reconciliation - Process Uploaded Statement
Bank Statement Reconciliation - Process Statement Manually