Reconcile Cash enables users to clear all types of transactions in their Cash Accounts – Checks, Deposits and Journal Entries are cleared through a single interface. The system displays the difference between the General Ledger and the Bank Statement as transactions are cleared.
On the first screen the user is prompted for the Statement Date, General Ledger Account Number and Statement Balance which is taken from the monthly Bank Statement. There are options to include Checks, Deposits and or Journal Entries. There is also an option to include transactions that have already been cleared. Depending on the format of the bank statement users may choose to clear all of the checks first and then come back and clear other types of transactions. The menu path is shown below.
Accounts Payable System
Check Routines & Reconciliation
Check Reconciliation
Reconcile Cash
Below is an example of the first screen. The system will retain the Statement Balance if the User exits and re-enters Reconcile Cash. Note where you can select which transactions you would like to work with, in the example below only Checks will be presented and we are not viewing transactions that have already been cleared.
On the next page the screen shows Checks that are available for clearing since we answered No to Deposits and Journal Entries. On the right side of the screen you have the options to clear/unclear the transactions individually or you could mark a group and clear all marked. Typically if you are clearing Checks you would click on Clear Line one at a time. As you clear a line the cleared date column will be populated.
After clearing the checks you will exit Reconcile Cash and re-enter where you can change the options on the screen below. This time we are going to answer No to Checks and Show Cleared. We will only view un-cleared Deposits and Journal Entries.
The Mark/Un-Mark options are useful if you need to combine mutliple lines together. For instance you enetered three Deposits in The BUSINESS EDGE but they went into the bank as one Deposit. As you Mark the lines the system shows a sub-total of Marked items in the center of the screen, this helps you to combine and clear the correct Deposits.
If you are not combining multiple entries you will simply clear each trasaction the same way checks were cleared.
If you find that there are charges on your Bank Statement that are not in The BUSINESS EDGE such as bank charges or interest, you can either enter them in the Bank Adjustment option on the right side of the screen or you can exit the reconciliation, enter them through the Journal Entry System and then come back an clear them. When entered through the Bank Adjustment on the screen above the transactions will be posted as of the Statement Date.
As transactions are cleared the system updates the Totals on the heading of the screen changing the Un-Cleared Amount and Difference. The Account is in balance once the difference is zero. The only difference between the Statement Balance and the GL Balance should be Un-cleared transactions.
Once the Difference is zero in Reconcile Cash, you are done. You may want to print a few reports as your backup. If you would like to print a list of outstanding Checks, the Outstanding Check Report is available in the Check Reconciliation Menu. You would typically answer No to Include Cleared Checks. Below is an example of this report when displayed on the screen.
Next you may want to print a copy of your Check Book for the Month. The G.L. Transaction Inquiry will show all transactions for the Date Range selected. You would answer Yes to Show One Line per Transaction and No to Show Transaction Detail. This will provide you with an easy to read format
