Bank Statement Reconciliation - Process Statement Manually

• The Bank Account must be set up (see Bank Account), including the various Translation String fields (see Bank Statement Reconciliation - Setup Requirements). The Bank Account’s Reconciliation Method must be set to Manual Entry.

• If the Bank Account’s currency is the same as the company's home currency, the Single Currency Payment Variance Account on the AR Control object must be populated. If the Bank Account’s currency is other than the company's home currency,  the Multicurrency Payment Variance Account on the AR Control object must be populated (see AR Control).

• The Bank Reconcile - Interest Income Acct on the AR Control object must be populated (see AR Control).

• The Bank Reconcile - CC Processing Fee Acct on the AR Control object must be populated (see AR Control).

• The Bank Reconcile - Interest Expense Acct on the AR Control object must be populated (see AR Control).

• If the statement to be entered is the first statement for the Bank Account to be entered in Rootstock, an initial bank statement for the Bank Account must have been entered and Finalized. See Bank Statement Reconciliation - First Reconciliation. Otherwise, the Opening Balance of the statement to be entered will be incorrect.

• If the statement to be entered is not the first statement for the Bank Account to be entered in Rootstock and the previous statement has not been Finalized, the new statement can be entered and reconciled, but it cannot be Finalized. This matters because General Ledger (GL) entries for variances and transactions originating on the statement (e.g., bank fees) are created when a statement is Finalized. Therefore, these entries cannot be posted until all prior statements have been Finalized. Unless fiscal periods for prior, un-posted bank statements have been held open, when these entries eventually are posted, they will post in later open periods.

Currency Screen Fields
 

All currency screen fields are displayed in bank account currency, except for Ending GL Balance Home, which is displayed in the company's home currency.  

Initial Screen
 

The screen that appears at the start of the process shows the Company and Account Number fields.
 

Company:  Displays the user’s current company.

Account Number:  The user selects the GL cash account assigned to the Bank Account for which a statement will be processed. If the user selects a Bank Account assigned the Download Reconciliation Method, the Bank Statement Reconciliation - Process Uploaded Statement method will be initiated instead of the Process Statement Manually reconciliation method.

Second Screen

The second screen offers users the choice of calling up a previously entered bank statement or entering a new one from scratch.

To Call Up an Existing Bank Statement. Select the desired statement from the drop-down list. It will load and take you to the Main Screen - Top Section.

To Enter a New Bank Statement from Scratch. Press the Enter New Bank Statement button. The Initialize Manual Statement window will display. This window consists of a display of previously entered statements for the Bank Account and two buttons:

• New, which displays the calculated starting values for the new statement and allows the user to enter the Statement Date and the Ending Balance. After entry, press Save to proceed to the Main Screen - Top Section.

• Close, which cancels the entry of a new bank statement.

The display of previously entered statements is important because, as was discussed in Prerequisites, the Opening Balance of the new statement will be the Ending Balance of the previous statement. It is possible to enter a new statement if the previous one has not yet been posted, but it cannot be posted until all prior statements are Finalized. 

Main Screen - Top Section

The top section of the main screen shows the Statement Header field and six buttons labeled Enter New Bank Statement, Update Statement Header, Add System Transaction, Query Unreconciled, Undo All, and Finalize.

• The Statement Header field: Initially, this shows a drop-down menu of existing statements. The user will either call up an existing statement or start a new one by pressing the Enter New Bank Statement button. 

• The Enter New Bank Statement button: See Second Screen->To Call Up an Existing Bank Statement.

• The Update Statement Header button: If pressed, the user can update the Statement Date and Ending Balance fields. These fields should be changed only if they were initially entered incorrectly.

• The Add System Transaction button: If pressed, the Maintain Statement window is displayed, and the user is given the opportunity to enter transactions of the following types that originated with the bank and not from the Rootstock system.

  • AP ACH/EFT Fees

  • AR ACH/EFT Payment Reported by Bank

  • Bank Fees/Service Charges

  • Bank Reports Credit Card Deposit

  • Credit Card Processing Fee

  • Interest Income

  • Interest Expense

  • All Other Adjustments

When entering these transactions, the user completes these fields:

• Bank Reference. The bank's identifying reference as shown on the bank statement.

• Bank Date. The transaction date as shown on the bank statement. It must be on or after the From Date and before or on the Statement Date. (The From Date is automatically set to the day after the Statement Date of the previous statement.)

• Tran Type. The Rootstock transaction type from the list above corresponds to the type shown on the bank statement.

• Bank Amount. The amount in bank account currency as shown on the statement:

  • For All Other Adjustments transactions, positive amounts increase (debit) the bank account balance, and negative amounts decrease (credit) it.

  • For all other types, the amount is entered as a positive number. The system knows whether to increase or decrease the bank account balance from the transaction type.

• GL Account. This drop-down field lists the GL Accounts if all the below conditions are satisfied:

  • The GL Account should be associated with the Company selected in Initial Screen.

  • The 'Type of Control Account' on the GL Account should be 'blank' or 'Not a Control Account'.

  • The 'AR Account Type' on the GL Account should be other than 'Accounts Receivable'.

  • The 'AP Account Type' on the GL Account should be other than 'Accounts Payable'.

  • The GL Account should not be referenced on any Bank Account.

  NOTE  For new transactions, when the 'Tran Type' is selected, the GL Account field defaults (user can override if needed) from AP/AR Control as mentioned below:
 

• The Query Unreconciled button: The Reconcile System Transaction section is refreshed if pressed.

• The Undo All button: If pressed, everything done since the Finalize button was last pressed is reversed.

• The Finalize button: If pressed, the statement status is set to Posted, and GL postings are made for variance transactions and for transactions originating on the statement (e.g., bank fees).

Main Screen - Statement Details Section
 

• All fields in the Statement Details Section are for display only - they cannot be modified by the user except by pressing the Update Statement Header button (see above).

• Company:  Displays the user’s current company.

• Bank Account Name:  Salesforce NAME field that uniquely identifies the selected bank account.

• Bank Currency:  Currency of the selected bank account.

• From date:  Day following Date of Last Statement. No Date per Bank in the set of bank statement lines can be earlier than the From date.

• Statement Date:  Date of this bank statement. No bank statement lines dated after the Statement Date will be accepted.

• Status:  One of five values:

  • In Progress: The header has been saved, but reconciliation is not complete.

  • Reconciled: The statement is fully reconciled.

  • Posted: A fully reconciled statement is now posted to the GL.

  • Posted with Errors: An unexpected error occurred during the Finalize step. The user should contact Rootstock.

  • Reversed: The previously Posted statement is reversed and reopened.

• Uncleared Deposits:  Uncleared Deposits at the start of reconciliation minus Deposits Cleared On This Statement.

• Uncleared Payments:  Uncleared Payments at the start of reconciliation minus Payments Cleared On This Statement.

• Uncleared Transfers:  Uncleared Transfers at the start of reconciliation minus Transfers Cleared On This Statement.

• Ending GL Balance Home:  Ending GL balance for the bank account in the company’s home currency, calculated as the prior month’s ending GL balance for the corresponding cash account plus & minus GL transactions between then and the Statement Date.

• Book Balance in Bank Curr:  Ending GL balance for the bank account in the bank account currency, calculated as Opening Balance plus & minus the system bank transactions (in the bank account currency) between the Date of Last Statement and the Statement Date.

• Opening Balance:  Ending Balance of the last bank statement for the Bank Account before this one.

• Current Transactions:  Value (in the bank account currency) that we must either reconcile to existing system transactions or add as new system transactions. It is set to Ending Balance minus Opening Balance.

• Ending Balance:  Ending statement balance in bank account currency, as reported by the bank.

• Reconciled Here:  Sum of Deposits Cleared On This Statement, Payments Cleared On This Statement, and Payments Cleared On This Statement. Though technically reconciled, system transactions added in the Bank Statement Reconciliation program are not included in this sum.

• Current and Unreconciled:  Value (in the bank account currency) of the system transactions we have not yet reconciled but should expect to reconcile before we finish. It is set to Current Transactions minus Reconciled Here.

Main Screen - Reconcile System Transactions Section

Reconcile Selected button: This button saves selected (checked) reconciled transactions. Transactions are reconciled by (1) checking the check box at the left edge of the displayed transaction and (2) optionally overriding the Reported Amount field (which defaults to the System Txn Amount). If the Reported Amount is overridden, a variance transaction is calculated and is posted when Finalize is pressed.
 

Fields:

• Reference:  Identifying reference for the system bank transaction. For deposits, it is a deposit identifier entered in cash receipts. For AP checks, it is the check number.

• System Txn Date:  Date of transaction.

• Transaction Type:  System transaction type.

• System Txn Amount:  System transaction amount stated in bank account currency.

• Reported Amount: The transaction amount reported by the bank. Defaults to System Txn Amount but may be overridden, in which case a variance transaction will be created when the statement is Finalized.

Main Screen - Reconciled Transactions Section

In this area, reconciled system and statement transactions are displayed together.

Button - Reverse Selected: This button, when pressed, (1) moves all selected transactions back to the Main Screen - Reconcile System Transactions Section, and (2), deletes any variance transactions that resulted from the reconciliation that is now being reversed.

Fields
 

• Stmt Tran Reference: See Reconcile System Transactions Section->Reference.

• Date per Bank: See Reconcile System Transactions Section->System Txn Date.

• Stmt Tran Type: See Reconcile System Transactions Section->Transaction Type.

• Reported Stmt Amount: See Reconcile System Transactions Section->Reported Amount.

• System Check#: The check # (if any) from the system transaction.

• System Txn Date: See Reconcile System Transactions Section->System Txn Date.

• System Tran Type: See Reconcile System Transactions Section->Transaction Type.

• System Txn Amount: See Reconcile System Transactions Section->System Txn Amount.

SEE ALSO
 

Bank Account
Bank Statement Reconciliation - Overview
Bank Statement Reconciliation - Setup Requirements
Bank Statement Reconciliation - First Reconciliation
Bank Statement Reconciliation - Bank Statement Upload
Bank Statement Reconciliation - Process Uploaded Statement