Bank Reconciliation
A document of adjusting entries. Each line is a debit and a credit for one amount, optionally tied to a payment or collection. Saving posts one journal entry per line. It does not match statement lines automatically and it marks nothing as cleared.
What it is for
When you compare the bank statement with the books, some items are on the statement only: charges, profit, a transfer nobody recorded. This screen posts them.
It looks like Bank Transactions and the lines can name a payment or collection the same way. The differences matter:
| Bank Transactions | Bank Reconciliation | |
|---|---|---|
| Which lines post | Lines with no origin, and lines cleared through a bridging account | Every line |
| Marks the payment or collection line as cleared | Yes, on the Posting Date | No |
| Reverse on the toolbar | Yes | No |
The rule people get wrong: a Posted reconciliation cannot be changed or undone from this screen. Once its Posting Status is Posted, Edit and Delete are greyed, and the screen has no Reverse. Keep it Park until you are sure.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Transaction | The document number | Given on Create |
| Posting Date | The date the journal entries are posted on | Required |
| Transaction Journal | The journal the entries are posted in | Required. Pick it before Create: it is locked afterwards |
| Journal, Journal Indicator | The journal's kind and indicator | Come with the Transaction Journal |
| Posting Status | Park or Posted | Fills from the journal's default posting status. The journal entries carry the same status |
| Currency | The currency of the lines | Starts as the company's local currency. Required |
| Exchange Rate | Rate to the local currency | 1 for the local currency, otherwise looked up on the Posting Date when you change the currency |
| Reference no | Your reference | Copied to the journal entry |
| Notes | Free text | Copied to the journal entry's header text |
| Reverse Date, Reverse Reason, Remarks | Reverse information | Not used, since the screen has no Reverse |
Lines
| Field | What it means | What to put |
|---|---|---|
| Line # | Line number | Automatic |
| Posting Date | The line's date | Takes the header Posting Date when the line is added |
| Bank Transaction Type | What kind of movement | From Bank Transaction Type. Required when Cash Bank Setting says so |
| Voucher No | The journal entry the line posted | Filled on Save |
| Origin Number, Origin Process | A payment or collection the line relates to | Optional. Same lookup as on Bank Transactions. When set, the amount is locked and only the bank side can be changed |
| Debit Account, Name | The account debited | Required |
| Transaction Amount | The amount | Totalled at the foot |
| Credit Account, Name | The account credited | Required |
| Instrument No, Instrument Date | Cheque or transfer reference | Optional |
| Line Text | Narration | Goes to both journal lines |
How to configure it
- The Bank Transaction Type rule and the per-company default values come from Cash Bank Setting.
- The screen allows Create, Edit and Delete. It has no Reverse.
Scenarios
- Bank charges found at month end. One line: Debit bank charges, Credit the bank account. Save with Posting Status Posted once checked.
- Profit credited by the bank. Debit the bank account, Credit profit on deposits.
What it is connected to
- Bank Transactions - the everyday clearing document.
- Transaction Journal - journal and posting status.
- Month-end close - the reconciliation is one of the month's closes.
- What posts.
If something looks wrong
- "Bank Transaction - Line ID: ... - Bank Transaction Type cannot be empty". The setting makes the type compulsory. Pick one.
- "Line ID: ... is duplicated with Line ID: ...". Two saved lines name the same payment or collection line.
- "... Posting Date ... cannot be less than Posting Date ... of ...". The line's date is before the date of the payment or collection it names.
- I posted a wrong reconciliation and cannot Edit, Delete or Reverse it. The screen offers no Reverse. Correct it with a new reconciliation line in the opposite direction.
- The cheque is still shown as not cleared. This screen does not clear cheques. Use Bank Transactions.