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Instructions for using the Bank Statement Reconciliation

What are the instructions for using the Bank Statement Reconciliation?

1. Security: The user must have rights to Reconcile payroll bank statement in order to run the Bank Statement Reconciliation for the payroll bank code.
2. Statement Date: Date on the bank's statement.
3. Opening Balance: Opening balance for the month on the bank's statement.

Check off all of the checks and deposits that are on the bank's statement reconciliation, noting the four possible exceptions below.

How the report should tie out:

Closing Balance = closing balance on the bank's statement
Closing Balance + Uncleared Balance = balance for the bank code account number on the General Ledger.

Six types of transactions may not flow through to the Bank Statement Reconciliation:

1. Journal Entries:  Have to be entered on the Miscellaneous tab. May also cause a Cash Journal Warning (see number 4).
2. Void payroll check adjustments:  The checks show up on the report, but the amount is VOID. The amount has to be filled in on the miscellaneous tab of the bank statement reconciliation.
3. Payroll checks: In Payroll Setup there is a field where the payroll Bank Code can be entered. If that is filled in, payroll checks will show up on the Bank Statement Reconciliation under the bank code chosen. If it is empty, the payroll checks will not show up on the Bank Statement Reconciliation. If this field is empty, the payroll credit will go to the account listed as the Salaries Payable account and an additional step must be made, a Cash Disbursement referencing this account, in order to have the payroll expense apply to a bank account.
4. Any Cash Disbursements, Cash Receipts, Journal Entries etc. that transfer from one bank account directly to another:  This can be checked by running a Cash Journal report. If there is a warning on the last page of the report, some transaction of this sort has been run.

Complete these steps to correct issues:

1. Look over the posting logs for that period.
2. Reverse the problem entry.
3. Read How do I transfer money from one checking account to another? in the Help.
4. Put the entry in correctly.

Note: 

• Checks and Cash Receipts entered in History Loading (Project Invoice and Receipt History and Accounts Payable Voucher History) will not appear on the Bank Statement Reconciliation.
• The accounts are accurate, add these transactions on the Miscellaneous Tab to get the Bank Statement Reconciliation to work out. (Adding information to the Miscellaneous tab will not change the general ledger account balances, the accounts receivable reports or the accounts payable reports).