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Bank reconciliation can be used to reconcile each bank account on your general ledger. Reconciling your bank account is tying your cash balances per your general ledger to the monthly statement received from your bank. Complete the following steps to reconcile your bank account:
Step 1. Bank Account Master Maintenance Setup
Before you can reconcile your bank statement, complete the one-time setup of the Bank Account Maintenance. (Should be already set up for use with check writing and deposits.)
Step 2. Start the Reconciliation Cycle
Each month, when you receive a bank statement, you can start a cycle. Enter the information from your bank statement on the screen, including the number and amount of checks and deposits cleared. See Starting the Reconciliation Cycle for more detailed information.
Step 3. Clear or Void the Checks
Next, you must tell the system which checks have cleared (or been voided). Use either Clear/Void Checks by Check Number Range, or Clear/Void Checks by Tagging from the Reconciliation Cycle Menu. Using your bank statement, mark the checks that have cleared the bank. See Clearing Checks. NOTE: Void checks in the sub-system that created the check.
Step 4. Reconcile Statement
This step starts with the amount from the bank statement and adds outstanding checks while subtracting outstanding deposits to arrive at the amount that should match the G/L for that date. If the amounts do not balance, you can print a listing to help track down errors. When this screen shows all amounts balancing, the statement cycle is automatically marked "Completed" and "In Balance" and you are ready to reconcile the next month's statement.
Step 5. Finding problems with Deposits and Checks
Deposits - This compares the deposits cleared on the bank statement with the deposits recorded in G/L. If the deposits are out of balance, check the last several deposits recorded in the G/L and compare them against the bank statement.
Checks - This step compares the amount of checks on the system to the amount on the statement. There are 2 parts to compare: The cleared section compares the dollar amount of checks cleared on the bank statement to the checks you marked cleared in the reconciliation file. If the items you marked match the amount cleared, this amount will be in balance.
Reconciliation Cycle
The reconciliation cycle consists of: