Idea Transcript
Bank Reconciliation Reconciling your monthly bank statement to the general ledger’s bank account is done utilizing the Check Reconciliation. While not required, building the deposits for your receipts to match deposits to the bank will simplify matching e-Quantum data to the bank statement.
BEFORE STARTING THE BANK RECONCILIATION FOR THE FIRST TIME If this is the first time you are using e-Quantum’s Bank Reconciliation you will need to configure your bank reconciliation adjustments, add/edit a reconciliation journal type and select it in A/P Configuration.
Bank Reconciliation Adjustment The bank reconciliation adjustments are created to add adjustment fields to the checkbook side of the bank reconciliation worksheet. These adjustment fields are used to post journals entries to the General Ledger when the reconciliation is complete. e-Quantum automatically uses the account associated to the account you are reconciling for the offsetting account. To create the adjustments go to G/L>G/L File Maintenance>Bank Accounts. Highlight the bank account, click Edit, and click on the Reconciliation tab. NOTE: These adjustments can also be added from within the Worksheet tab in the Bank Reconciliation screen.
Description: Enter a description, i.e.; Bank Fees. G/L Acct: Select the account number the adjustment will post to, i.e.; Bank Fees. Temporary Adjustment: Selecting this flags the adjustment as a “one time only” adjustment. This adjustment is removed when you drop the reconciled items.
Reconciliation Journal Type The reconciliation journal type is created to link the Adjustment #1, #2 and #3 fields, on the bank statement balance side of the bank reconciliation worksheet to a journal entry. These
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adjustment fields are used to post journals entries to the General Ledger when the reconciliation is complete. e-Quantum automatically uses the account associated to the account you are reconciling for the offsetting account. To add a new account or edit one you are not using go to G/L>G/L File Maintenance>Journal Types.
Add: Click here if you are adding a new journal type. Journal Type: Enter an ID. Description: Enter a description. Edit: Click here if you are changing a journal type. Description: Change the description. Adding the reconciliation journal type to A/P Configuration After creating the journal type it will need to be defined on the Configuration tab in A/P Configuration. To do this go to A/P>A/P File Maintenance>A/P Configuration, click on the Configuration tab. Enter the reconciliation journal type in the Recon. Jrnl field.
Documents needed for the Reconciliation NOTE: Keep a clean original of all documents for audit purposes. Bank Register: This report should be printed for the period and bank ID being reconciled. To print this report go to A/P>Reports>Bank Register Report. Be sure to use the following Range Selections.
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Bank: ID for the account being reconciled. Period/YR: Reconciliation period. Show Deposit Summary: Yes
General Ledger Report: This report should be printed for the period and general ledger account assigned to the bank account being reconciled. To print this report go to G/L>G/L Reports>General Ledger Report. Be sure to use the following Range Selections. Year: Reconciliation year. Period: Reconciliation period. G/L Account: G/L account assigned to that bank. Suppress Running Balance: No. NOTE: You will need multiple copies of the following: Previous month’s bank reconciliation worksheet. Original bank statement. Merchant Services statement for credit card deposits.
The Reconciliation Go to AP>Reconciliation>Check Reconciliation. This area contains 4 tabs; Checks lists the outstanding system (S), manual (M) and general ledger (G) checks; Deposits lists the outstanding deposits; Worksheet which is used to calculate the general ledger’s balance for the period being reconciled, outstanding check amount and any misc adjustments; and Notes which is used to enter any applicable remarks.
1. To begin enter the following information in the top area of the screen; Bank ID: Enter the bank account ID. Period: Select the period being reconciled. Checkbook Balance Date: This is an “as of date”. Enter today’s date. NOTE: Using today’s date brings in all transactions posted to the accounting/reconciliation period regardless of the transaction date. Page 3
2. On the Worksheet tab a. Checkbook Balance, as of: Click on the lightning bolt (or you can click on the Program menu and select the Calculate Bank Balance option).
Which Period: Select the accounting/reconciliation period. Calculate Balance: Clicking on this enters the ending balance of the general ledger account for the selected period and returns you to Worksheet tab. b. Bank Stmt Balance, as of: Enter the ending balance from your bank statement.
3. On the Checks tab a. Check the box for each check listed on the bank statement. This process is referred to as clearing the checks. You can also clear/unclear checks as a group by user either the Group Clear or Group Unclear buttons.
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b. View the other withdrawals section of your statement for wire transfers, auto payments and any other electronic deductions from your account. These transactions may have been entered into e-Quantum as a manual check, general ledger check or journal entry. NOTE: Posted journal entries do not appear on the Worksheet tab, but may have been entered manually as GL checks on the Checks tab. Journal entries are listed on the bank register report and are included in the Checkbook Balance on the Worksheet tab. Journal entry transactions appearing on the bank statement are checked off on the bank register report and/or the Checks tab. NOTE: Entries made in one of these fields will generate a journal entry in the General Ledger after the reconciliation is complete. c. Bank service charges, credit card fees and other deductions not yet entered into e-Quantum are entered in the Checkbook Balance section on the Worksheet tab in one of the reconciliation adjustment fields (these were entered in General Ledger’s Bank Accounts) or you can create a new adjustment by clicking on the blue plus button. To subtract from the bank account enter a – (minus sign) in front of the dollar amount to add to the bank account enter a positive number. d. If you need to create additional reconciliation adjustment fields click on the blue plus + button. This adds the Bank Reconciliation Adjustment to the list of adjustments unless Temporary adjustment is selected (one-time adjustment).
NOTE: Entries made in one of these fields DO NOT generate a journal entry in the General Ledger. They remain on the Worksheet tab until the account balances.
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4.
On the Deposits tab a. Check the box for each deposit listed on the bank statement. This process is referred to as Clearing the deposits. b. View the other credits on the bank statement for electronic deposits, wire transfers, etc.
Deposits or credits listed on the bank statement but not listed on either the Worksheet or the Bank Register report are added to the Checkbook Balance section of the Worksheet. If they are on the Bank Register in the following month enter them in one of the Non-GL adjustment fields with an explanation in the Notes section. If they are not in e-Quantum and need to be, they are added to the GL Adjustments section (make sure you use the appropriate option to ensure posting to the correct general ledger account).
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5. Account for ALL transactions listed on the bank statement. Transactions listed on the bank statement but not on the Worksheet or the Bank Register must be added to the Worksheet in the Checkbook Balance section.
6. Deposits that did not clear the bank display in the Deposits in Transit field (directly under the Bank Statement Balance field).
7. At this point both of the Adjusted Balance fields should equal. The Difference field changes from red (out of balance) to green (in balance) when the two fields match.
FINDING DIFFERENCES Verify that you have calculated the balance for the correct period and have used today’s date.
Verify that the bank’s ending balance was entered on the Worksheet. To Confirm a Check is causing the outage: Take the total of last month’s outstanding check from the prior month’s
reconciliation. Add the total amount of checks written in the reconciliation month (total of the credit column on the General Ledger report). Deduct the total of the cleared checks/withdrawals on the bank statement. This number should equal the outstanding checks listed on the Worksheet.
Possible issues if it doesn’t: A check not on the bank statement was cleared in e-Quantum. A check on the bank statement was not cleared in e-Quantum. A check or withdrawal on the bank statement wasn’t entered into e-Quantum or
onto the Reconciliation Worksheet. A check posted to a reconciliation period not list on the Worksheet. Verify that the Checkbook Balance Date (top of the screen) is the current date [today]. A check in e-Quantum is not the same amount as on the bank statement. A voided check. Mark the check as cleared only if the check is on the Worksheet a second time and classified as “Void” in the right column. Checks have been entered in A/P but have not been posted to the general ledger.
To Confirm a Deposit is causing the outage (same formula as used for checks): Take the total of last month’s outstanding deposits from the prior month’s
reconciliation. Add the total amount of deposits recorded this month. Deduct the total of the cleared deposits on the bank statement. This number should equal the outstanding deposits listed on the Worksheet.
Possible issues if it doesn’t: A deposit not on the bank statement was cleared on the Worksheet. A deposit on the bank statement wasn’t cleared on the Worksheet.
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A deposit or credit on the bank statement was never entered into e-Quantum or the Reconciliation Worksheet. A credit card deposit was partially posted to the bank. Use the merchant services credit card statement to verify deposits listed on the Worksheet and bank statement. A deposit amount entered into e-Quantum does not equal the bank statement amount. NOTE: The bank statement amount may be a credit card deposit less the merchant services charges. Receipts were entered into e-Quantum but not built into a deposit. Check the deposit summary on the Bank Register report. If the deposit number is None instead of an actual number follow one of the two options listed below. a. If the receipts are outstanding enter the amount in one of the adjustment fields under the Bank Statement Balance section of the Worksheet. b. If the deposit None is listed as a cleared deposit on the bank statement, check off the deposit on the bank statement. No adjustment to the Worksheet is necessary.
All transactions on the bank statement are accounted for but the Reconciliation is still out of balance: Verify that all transactions posted to the general ledger. Print the AR and AP Pre-post reports for the reconciliation period (A/R (A/P)>Period End>Pre-post report). Check the reports for any listed transactions that belong to the reconciliation period. Correct the transactions if needed. Post to the general ledger. On the Worksheet tab Click on the lightning bolt next to the Checkbook Balance, as of field. Select the accounting/reconciliation period. Click the Calculate Balance button to re-calculate the ending balance.
The Reconciliation is still out of balance:
Manually check off each transaction on clean copies of the bank statement, bank register report, previous reconciliation and merchant services statement. Compare results against the printed copy of the Worksheet for differences.
ONCE THE WORKSHEET BALANCES Review the Worksheet for adjustments that need to be entered as journal entries to the general ledger. For example; bank fees, any withdrawals/additions entered in the Checkbook Balance section of the Worksheet.
Building the Journal Entry The next step in the reconciliation process is to generate the journal entry. To do this, click on the Program menu and select the Build G/L Journal option. NOTE: If the worksheet is NOT in balance the system displays a warning giving you the opportunity to cancel/exit. If you are ready to continue, click Yes. The system will then display a warning window showing you the journal entry number it just created. Click Okay.
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Posting the Journal Entry After the journal entry has been generated it will need to be posted. To do so minimize the A/P Reconcile Checks screen, go to G/L and select the Edit/Post Journals Entries option. Highlight the batch, click Post. Verify that the posting period is correct. If it is click Post. If it is not click Cancel, edit the journal entry, correct the posting period, save and post. Go back into the reconciliation worksheet. Recalculate the Checkbook Balance field (lightning bolt to the right) making sure the correct period is selected. Zero out the journal entry fields in the Checkbook Balance section.
Reclosing the General Ledger Anytime you post to a prior general ledger period you MUST reclose the period you posted to and all subsequent periods up to the current period. Go to G/L>Period End>Period End Processing. Select the reconciliation period, click Continue. Repeat this process until the general ledger is in the current month.
Finalizing the Reconciliation Once the journal entry has been posted and the general ledger closed you can finalize the reconciliation. The 2 Adjusted Balance fields should equal and the Difference field should be green (red is out of balance). Print the Worksheet. OPTIONAL: Save an electronic copy of the Worksheet in a “Month Financials” folder. Using the Batch PDF program: Click Print, select Send, and select #1 Email a PDF. Click Okay, click Edit, select Send via email (PDF) and enter the email address. Click Go, click Begin. Using MAPI: Click Print, click Preview, and click on the Export button (envelope w/arrow). Format: select PDF. Destination: Microsoft Mail (MAPI). You may need to configure this option with your email account. Export Options/Page Range: All. Enter email address and subject, click Send. Export as a PDF: Click Print, click Preview, and click on the Export button (envelope w/arrow). Format: select PDF. Destination: Disc file. Click Page Range: All. Save In: Locate the folder you want to save into. File Name: Rename appropriately. Click Save, click Exit.
CLICK DROP TO CLEAR THE WORKSHEET.
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