11.03. Bank Statement

In SocrateCloud the bank statement is used follow transactions made through bank accounts and match them with payments and receipts. Bank statements can be entered manually or imported from online banking systems.

Bank Statements

The Bank Statement window, located in the Open Items menu, is used to enter bank statements. The following fields are available:

• Name, Description

• Bank Account - the bank account for which the bank statement was issued;

  • if the bank account IBAN is not valid, you will not be able to complete the bank statement (Document Status = "Invalid");

• Statement Date - the date on the bank statement

• Manual - indicates that the statement was manually entered;

  • Beginning balance - the initial account balance;

  • Statement Difference - the total amount on statement lines;

  • Ending Balance = Beginning Balance + Statement Difference;

  • Match Bank Statement button - is used to match statement lines with payments and receipts in SocrateCloud, based on a specific algorithm. Details in Open Items Setup;

  • Create Lines from button - is used to generate statement lines from payments or receipts;

Reference section - the information displayed in EFT Statement Reference and EFT Statement Date are system maintained and will be updated if the bank statement was obtained by electronic transfer. This functionality is not available for some banking systems.

Status section:

• Document Status - indicates the current status for the bank statement document: "Drafted", "Completed", "Voided";

• Approved - indicates that the document was approved. Details in Workflows;

• Document Action button:

  • "Complete" -> Document Status: "Completed"

    • after entering all the statement lines and matching them with payments, the bank statement can be completed;

    • will update the account balance;

  • "Void" -> Document Status: "Voided"

    • will cancel the bank statement and will delete any existing statement - payment associations;

    • will set all the bank statement line amounts to 0.

Bank Statement Lines

The Statement Line tab is used to manage bank statement lines. The following fields are available:

• Line No, Description

• Statement Line Date - the date on the bank statement line;

• Manual - indicates that the statement line was manually entered;

• Account Date - date used for the resulting accounting transactions when posting the the statement;

• Effective date - date used when processing the bank statement. Because this date is also used for currency exchange operations, for statements in foreign currency, this must be equal to the matching payment date;

Positive amount represent receipts and minus amounts represent payments. When entering an amount on the statement line, the system will automatically update the remaining values using the following rule:

• Statement amount = Transaction Amount + Charge Amount + Interest Amount;

• • Statement Amount - total amount on the bank statement line;

  • Payment - the matching payment or receipt. When selecting a payment:

    • this field is updated with the payment date and number and amount;

    • the Transaction Amount is updated with the payment amount;

  • Transaction Amount - the matching payment amount;

    • Starting with v14.11, bank statements with a transaction amount must have a matching payment in order to be processed;

  • Currency, Exchange Rate - applicable currency and exchange rate;

• Charge, Charge Amount - are used to match statement amounts with expense types;

  • if the charge amount is 0, any charge selected will be removed when completing the bank statement;

  • Interest Amount - is used to indicate the applicable bank charges;

• Reference No, Memo (system maintained) - completed on imported bank statements. Can be used when matching bank statements;

• Project, Activity, Campaign etc. - accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting;

• Create Payment button - is used to generate a matching payment based on the bank statement line:

  • Before generating the payment select the business partner or invoice in the Reference section;

  • if an invoice is selected, the payment will be allocated automatically;

• Match Bank Statement button - is used to match statement lines with payments and receipts, based on a specific algorithm. Details in Open Items Setup;

• Payment Allocation button - is used to allocate the matching payment with an invoice. Will open the Payment Allocation window, with the payment as a selection filter. Details in Allocations;

Reference section:

• Business Partner - business partner on the matching payment;

• Invoice - invoice allocated to the matching payment

• "EFT" fields (system maintained) - updated if the bank statement was obtained by electronic transfer. This functionality is not available for some banking systems.

The bank statement can be printed using the Print button on the toolbar. Starting with v15.09, The "BP Name" (business partner name) column is no available for the corresponding print format.

Accounting

When posting bank statements, the organization defined for the bank account selected in the bank statement will be used for accounting transactions . If you select an expense (tax) in the statement line, the organization on the bank statement will be used in the accounting transaction. External organizations need to be defined. The accounting transactions generated for a bank statement are described below:

• • Tax (Revenue)

    • Debit: Bank Asset

    • Credit: Charge Revenue

  • Tax (Expense)

    • Debit: Charge Expense

    • Credit: Bank Asset

  • Interest (Revenue)

    • Debit: Bank Asset

    • Credit: Bank Interest Revenue

  • Interest (Expense)

    • Debit: Bank Interest Expense

    • Credit: Bank Asset

  • Receipt

    • Debit: Bank Asset

    • Credit: Bank In Transit

  • Payment

    • Debit: Bank In Transit

    • Credit: Bank Asset

Rule: for the bank statements in a different currency than the principal one, it is mandatory that the Effective Date be the same as the payment/receipt date on the respective statement line. This is because the posting valuation is done at the currency specified for the Effective Date.

Notes

• After processing the bank statement, the amount in the bank account needs to be equal to that in the bank statement, given the fact that all values in the statement were entered. Furthermore, the balance of the Bank in transit account needs to be equal to the sum of the entered payments that have not been allocated to the statement.

• If the most commonly used payment method is check, then the majority of the payments have been registered in SocrateCloud through the Payment window, either directly, or as part of the order-sales process.

• If the most commonly used payment method is direct debit or credit, the first indication about the transaction can be the bank statement from the bank. In this case, SocrateCloud facilitates the registration of transactions in the Bank Statement window and the generation of Payments/Receipts from the bank statement.

• When the Payments and Receipts are generated in this way, the allocations will be numerous. This will ensure that the bank account balance is up-to-date.

• When you generate payments and receipts directly or through the sales/purchase process, you need not do the allocation as frequently. In any case, the situation of the available funds can be obtained by adding up the bank account and the bank in transit balances.

• For the transfer between bank accounts, create a tax that will refer to the account defined for the bank in transit funds. In the bank statement from which you have taken the funds, create a Statement Line for the created tax account and enter the transferred amount (with minus). In the bank statement for the bank account to which you have transferred the funds, create a Statement Line for the created tax account and enter the transferred amount (with plus).