Bank Reconciliation
When you receive, or download, your account statement from your bank you can use the Check Reconcile function to compare the bank statement (i.e. bank balance) with your checking account in AcctVantage (i.e. book balance) and update your records accordingly.
1. Open the Check Reconcile window and select the bank account to reconcile
Navigate to Accounts Payable ➤ Check Reconcile and select the account you wish to reconcile.
Only GL accounts designated with the Setup Type of A - Checking will be available for reconcile via this process.
To reconcile any other GL account, please go to General Ledger ➤ Reconcile.
2. Check Reconcile window
In the Check Reconcile window you will only see transactions that affect the selected bank account. These transactions can include checks, batch deposits and adjusting entries.
Note: This is different from the Check Register where you see all transactions that affect all bank accounts.
Account Info: This section is purely informational.
- GL Account Name & Code, Bank Name & Account: These values all come from the GL Account record in the Chart of Accounts.
- Posted Balance: This is the balance posted to the GL as of the last day of the current fiscal period. Typically this would be the last day of the current month. However, it could be different if your company is using fiscal periods that don't coincide with calendar months.
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Real-Time balance: This is the Last Reconciled Balance plus or minus any Unreconciled items in the Check Register.
- For example, an AR Receipt that has been posted, but not yet included in a batch deposit would result in the GL Balance being higher than the Real-Time Balance. Once the Batch Deposit is created, a Register entry is made and the Real-Time Balance is updated.
- Another example woud be a Quick Check that has been entered on the Register but not yet posted. This would cause the Real-Time and Posted balances to differ.
Reconcile To: Enter the Statement Date and Statement Balance as listed on your bank statement.
Previous Reconcile Sessions: Use the drop-down menu to see previous reconcile sessions. Use the Undo Last Reconcile button to delete the most recent reconciliation. Click the Info button to see info related to the reconcile session that you're viewing.
Statement: This section will display info from the previous reconcile session (Last Rec. Date & Balance), plus(minus) transactions cleared during the current session.
- Single Click to Clear: If you check this box, a single mouse click will clear (or unclear) individual transactions in the list.
- Clear Selected: If the Single Click to Clear box is unchecked, then you can highlight uncleared transactions that you want to clear and then click this button to clear them.
- Unclear Selected: If the Single Click to Clear box is unchecked, then you can highlight cleared transactions that you want to unclear and then click this button to unclear them.
- Import QFX: Use this feature to import cleared transactions from your bank. See below for more info.
- Reconcile: Click this button ONLY when you're ready to finalize the reconciliation.
- Done: If you're not finished with the reconciliation but you need to save your progress, then click this button.
3. Mark transactions as Cleared
3.1. Clear transactions manually
Compare the items from your Bank Statement (checks/withdrawals/other debits and deposits/other credits) to the list on your Check Reconcile screen.
- You must first enter the Statement Date and Statement Balance from your bank statement (or other source document if you're reconciling mid-month).
- Select the transactions that have cleared the bank by clicking on them to highlight. Hold down the Option key (Mac) or Control key (Windows) to select multiple transactions at once.
- Once you have highlighted items to clear, use the Clear Selected button to clear them. If you cleared any transactions in error, use the Unclear Selected button to unclear them.
- Optionally, check the Single-Click to Clear box and you'll be able to mark transactions with one mouse click.
- As items are marked as cleared, the values for Deposits, Withdrawals, Cleared Balance and Difference will be updated.
- "Clearing" transactions is NOT the same as "Reconciling" them. At this point you're only tagging transactions that will eventually be reconciled later.
- The Difference value represents the amount needed to reconcile to match your statement. If Difference is $0.00, then your cleared balance and statement balance agree.
3.2. Import QFX File to clear transactions
Many banks provide an option to download a QFX file for import into accounting systems. If your bank allows it, this can save considerable time in processing your reconciliation.
Follow this link to review the QFX import process.
3.3. Unmark transactions as Cleared
If you make a mistake in marking transactions as Cleared, you will want to remove the Cleared status prior to reconciling.
- Highlight the transaction(s) that need to be uncleared.
- Select the Unclear Selected button.
- All values for the session will be updated.
4. Save an in-progress reconcile session
You can save your progress with the current reconcile session by clicking the Done button. This will not finalize the reconciliation. You will be able to return to it and finalize the session later.
When you return to the Reconcile screen, the system will automatically load the current session in progress. In this manner, you may "clear" items throughout the month and then finalize the reconciliation once the statement arrives.
5. Reconcile and Update Statement Balance
When your Cleared Balance equals the Statement Balance and there is a Difference of $0.00, you are ready to finalize the reconcile session. To update the Last Reconciled Balance with the new Statement Balance, simply click on the Reconcile button.
5.1. Confirm the reconciliation
After you click the Reconcile button, you will get a prompt to confirm the reconciliation. Click Yes to save the session and set a new Last Reconciled Date & Balance.
5.2. Is the reconcile session out-of-balance?
If you attempt to reconcile a session that is not in balance, you will see the follow message. The system will allow you to finalize an out-of-balance reconcile session, however next month's session will also likely be out-of-balance. For this reason, it is NOT recommended to finalize the session until it is in-balance.
6. Reviewing completed reconcile sessions
6.1. View a previous reconcile session
If you have a need to review a previous Reconcile Session, use the drop-down menu in the Previous Reconcile Sessions area to select a prior session. Once selected, the system will load the items that were marked as cleared during the selected session. All displayed Statement info will reflect the data for the chosen session.
You can also see more info pertaining to the reconcile session by clicking the Info button.
6.2. View the Reconcile Info
Click the Info button next to the drop-down (the "i" icon) to view the Reconcile Info:
- Reconcile ID: The internal database ID for the session.
- Reconciled on Date: The date when the reconcile session was completed. This is NOT the same as the Statement Date.
- Reconciled by User: The user who completed the reconcile session.
7. Correcting or Deleting a Reconcile Session
If a mistake has been made while reconciling, you can easily make a correction by using the Undo Last Reconcile button.
In the Previous Reconcile Sessions area, use the drop-down menu to select the most recent session (you can only undo the most recent, but you CAN undo several sessions in sequence if you need to go back further than one session!). Once selected, the system will load the details of the session for review. If you wish to roll back that reconciliation, simply click the Undo Last Reconcile button (repeat for each session you want to undo). The system will reset the Last Rec. Date and Balance, Cleared Balance and Difference values. At this point, you can recreate your reconciliation as if it had never happened.
Reconcile Report
Click this link for more info on how to print a report for a reconcile session.