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Cash Management > Reconcile

The Cash Management > Reconcile module is where users reconcile monthly bank statements to their general ledger accounts.

Travis Lander avatar
Written by Travis Lander
Updated over 2 weeks ago

Overview

Reconciliation Statements in SoftLedger allow you to verify and track the balance between your ledger accounts and bank statements. This process ensures financial accuracy by identifying discrepancies between your internal records and external bank statements and allows you to track uncleared deposits and outstanding checks.

The following video gives you introduction to this module:

The Reconciliation Process

Prior to starting the reconciliation process, confirm all transactions for the period have been booked in the general ledger.

  • If using bank transactions, be sure that the Plaid connection is current or a Custom feed has been created, and all transactions for the period are booked/linked.

  • If using the ledger account within AP/AR, be sure Bills and Invoices are processed and paid to reflect payments using the ledger account for the period.

Once you have ensured all bank transactions have been booked for the month, you can begin your reconciliation by going to Cash Management > Reconcile.

Create a new reconciliation by clicking +New and adding required details

Statement Create
  • Location: Select the organizational location.

  • Ledger Account: Choose the account to reconcile.

  • Currency: Specify the currency (custom currencies not supported).

  • Balance: Input the bank statement balance.

  • Statement Date: Set the end date (e.g., YYYY-MM-DD). Reconciliation Statements must be done in chronological order.

  • Reference: Add a unique identifier (e.g., statement number).

Ensure the Statement Date is after the last closed statement for the same account/location/currency combination. Once all information is entered, click submit and you will be directed back to the home page.

The Reconciliation you just created will appear at the top of the list. Click on the linked reference you created in order to get started.


Statement Information

The Statement is broken into two parts: at the top, you'll see the summary tables with the information you put in to create the Statement, the progress of your reconciliation, and a comparison of your Cleared Balance to your Book Balance (General Ledger balance of the account as of the Statement Date). The bottom part of the Statement is the list of all journal lines for your account and reconciled/unreconciled status.

Statement Data

Statement Details

Field

Description

Statement Date

The end date of the statement, as entered by the user.

Last Statement Date

The end date of the previous statement (if one exists).

Ledger Account

The account being reconciled.

Location

The Location that owns the account.

Currency

The currency of the account being reconciled.

Status

Open or Closed.

Closed On

Timestamp when the statement was Closed (if applicable).

Balance Summary

Field

Description

Statement Balance

The balance entered by the user from the bank statement.

Cleared Balance

Equals Ending Cleared Balance

Variance

Difference between Statement Balance and Cleared Balance

Beginning Balance

The balance from the previous statement.

Deposits

Sum of reconciled debit amounts for this statement period.

Payments

Sum of reconciled credit amounts for this statement period.

Ending Cleared Balance

Beginning Balance + Deposits + Payments

Reconciliation Status

Field

Description

Booked Balance

General Ledger balance for this account as of the Statement Date.

Unreconciled Amount

Difference between Booked Balance and Cleared Balance.

Linked Bank Accounts

Displays a list of bank accounts linked to the statement’s ledger account. Clicking a bank account opens its Bank Feed in a new tab, filtered to the statement’s date range.

Reconciliation Table Features

The Reconciliation Table displays the journal lines from all transactions available for reconciliation based on the criteria of the Statement.

Marking a Line as Reconciled

Select one or more journal lines from the table and click the check mark at table top to mark the line(s) as reconciled. You are able to bulk reconcile and bulk unreconcile Journal Lines in this table.

For more information, watch the video at the beginning of this article: Reconciliation Statements Run Through

Note: You can also remove a reconciliation checkmark by selecting one or many journal lines and clicking the X icon to mark the line(s) as unreconciled.

Default Columns

  • Reconciled: Status indicator (reconciled lines display a checkmark).

  • Source: Bank (from Bank Transactions) or Journal (manual entry).

  • Reconciled Date: Date the item was reconciled.

  • Journal Number: Unique journal identifier.

  • Ledger: Associated ledger account.

  • Reference: Transaction reference.

  • Transaction Date: Date of the transaction.

  • Posted Date: Date posted to the ledger.

  • Status: Transaction status (Draft/Posted).

  • Debit: Debit amount.

  • Credit: Credit amount.

Additional Columns

Includes fields like Line ID, Description, Cost Center, Product, Customer, Vendor, and Custom fields (if enabled).

Default Sort

  • Posted Date (descending)

Sortable Fields

  • Posted Date, Reconcile Date, Journal Number, Ledger, Transaction Date, Debit, Credit, and more.

Filterable Fields

  • Cost Center, Credit, Debit, Description, Journal Number, Ledger, Reconciled status, and more.


Prepare Statements in Chronological Order

Statements must be prepared in chronological order to ensure beginning balances of your bank accounts are reflected correctly in each Statement.

In order to ensure your Reconciliations are done in the appropriate order, you will not be able to create statements with dates earlier than existing statements. SoftLedger will automatically set the last statement’s end date as the beginning date for the next statement.

Managing Statements

You can edit, lock and delete Statements on the main page. Remember not to delete Statements that precede any Reconciliation Statements you wish to keep.

Statement List


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