Reconcile the Check Register (AV 2015 and earlier)
When you receive your account statement from your bank you can use the Reconcile function to compare the Bank Statement (bank balance) with your checking account in AcctVantage (book balance) and update your records accordingly.
1. Open the Check Reconciliation window
2. Enter the Statement Date and Select the Account to Reconcile
3. Reconciliation Window
In the Reconciliation window you will see only transactions (e.g. Checks, Deposits and Journal Entries) that affect the selected bank account.
Note: This is different from the Check Register where you see transactions that affect all bank accounts.
4. Mark Transactions as Cleared.
Compare the items from your Bank Statement (checks/withdrawals/other debits and deposits/other credits) to the list on your Reconciliation screen.
- Select the transactions that have cleared the bank by clicking on them to highlight them.
- Pro tip: Make a tick mark (I like to use pencil) on the bank statement next to the transaction as you highlight it in AcctVantage. It helps to stay organized during the clearing process so you don't lose your place and accidentally clear transactions that have not cleared the bank.
- When you have highlighted the transactions that have cleared the bank go to the Action Menu and select Mark as Cleared.
- You will see an asterisk (*) appear in the Clear column and the Statement Date will populate in the Cleared On column (see next screenshot).
4.1. Transactions are Marked as Cleared.
The transactions with the asterisk (*) in the Clear column and a date in the Cleared On column have been Marked as Cleared.
5. Unmark Transactions as Cleared
If you make a mistake in marking transactions as Cleared, you will want to remove the Cleared status PRIOR TO UPDATING THE BALANCE.
- Highlight the transaction(s) that need to be Unmarked as Cleared.
- Open the Action Menu and select Unmark as Cleared.
- You will see the asterisk(*) disappear from the Clear column (see next screenshot.)
- You can only Unmark a transaction as Cleared if you have not yet clicked Update Balance. The Reconciliation must be in balance before you click Update Balance!
- Thus far, you have not reconciled anything. All we have done is to determine (i.e. Mark) which transactions we will be reconciling against the bank statement.
5.1. Transactions have been Unmarked.
You can now see that the asterisk (*) in the Clear column has been removed in addition to the Statement Date in the Cleared On column.
6. Reconcile the Account
After the appropriate transactions have been Marked as Cleared go to the Action Menu and select Calculate Balance. When you click Calculate Balance you will be presented with the Update Statement Balance window (see next screenshot), which will display:
- Previous Balance: This will be equal to the Ending Balance of last month's Bank Statement.
- Deposits (+): This will equal the total of deposits + other credits that you have Marked As Cleared.
- Withdrawals (-): This will equal the total of checks + withdrawals + other debits that you have Marked as Cleared.
Ending Balance (=): This needs to equal the Ending Balance on your Bank Statement before you click Update!
- If it does not Reconcile you should click Cancel to return to the list, which will allow you to investigate and correct the discrepancy by Marking/Unmarking additional transactions.
Note: You must correct ALL discrepancies between the Reconciliation window (book balance) and the Bank Statement before Reconciling the account (i.e. Updating the Balance)!
6.1. Update Statement Balance.
Click Update ONLY WHEN YOU ARE POSITIVE THAT YOUR ENDING BALANCES (bank vs. book) ARE IN AGREEMENT!
When you select Update:
- AcctVantage permanently Marks the selected items as Cleared in the system, stamps the records with the Statement Date, and records a new Ending Balance.
- This month's Ending Balance will appear as the Previous Balance for the next month's reconciliation.
- The Reconcile window will close immediately after AV processes these items.
WARNING: Once you have accepted the Ending Balance for a Bank Reconciliation DO NOT click Update to calculate the account balance more than once for that Statement Date!
- If you do, AcctVantage will process the Cleared items more than once, causing the calculated Ending Balance to be incorrect (which will make the beginning balance incorrect for the next month's reconciliation.)