Overview

A Bank Reconciliation is a process whereby the ledger entries on the bank account are compared to the entries on the bank statement received from the bank. This process helps ensure that all the ledger entries are accurate and that all the transactions are recorded. It will also highlight if any deposits are missing (not yet banked) and if there are uncleared cheques or payments.

These tutorials explain how to perform a Bank Reconciliation by comparing all the entries in BOS Professional to all the entries on the Bank Statement. They also explain how to resolve unreconciled entries.

Navigation: Main Menu > Accounting > Bank Reconciliation

How to Setup Entry Types for Reconciliations

1. Navigate to Main Menu > Setup > Accounting > Entry Types.

2. Double click an entry that posts to the bank.

3. Add a Reconciled Status as follows:

   • Group = Complete;

   • Editing = False;

   • Accounting = True (tick the checkbox);

   • Default = Reconcile 

4. Repeat Steps 2 and 3 for entries that post to a bank account.

Ledger Transactions are reconciled using the transaction's Status functionality.

The Reconcile button (checkmark icon) in the Ledger sets the Transaction to the default Reconciled status.

If the Status does not exist, an error is returned.

If the transaction has already been reconciled, an alert is displayed when clicking the Reconcile button.

The Reconcile button can be found in the Transaction View, Detailed Ledger View as well as on the Transaction Edit Form on the Button (bar) with a Done caption. 

How to Reconcile a Bank Account

1. Navigate to Bank Reconciliations.

2. Click New (button) to start a new reconciliation.

3. Select the Account = Bank Account you want to reconcile.

4. Select the Date = The last date on the Bank Statement.

5. Enter the Balance as per Bank Statement = The last bank balance that appears on the Bank Statement.

6. Compare the entries to the Bank Statement one by one. If they appear on the Bank Statement, click on the record and click Add (button). Repeat this step until all transactions are reconciled.

   • Note: The balances in the header will adjust as you select entries.

7. Enter any entries that appear on the bank statement but are not on the ledger.

8. Once the variance is zero, click Done (button).

9. Print the Bank Reconciliation for Audit purposes.

10. Investigate all the uncleared transactions (see below).

If the Entry Types are not set to a Reconciled Default Status, they cannot be reconciled in this module. Ensure that Entry Types (e.g. Customer Receipts, Supplier Payments) have a Default Status set to Reconciled (Main Menu > Settings & Defaults > Status)

How to Fix Entries Posted to the wrong Bank Account

1. If an entry was entered using the wrong Bank Account, you should be able to edit the entry and change the bank account:

   1. Navigate to the Main Menu > Accounting > Ledger.

      1. • Note: If you are busy with the bank recon, double click the entry and the Ledger will open on the right.

   2. Next to Filter select General Ledger Account.

   3. Next to Account select the Bank Account you are busy reconciling.

   4. Set the Date. 

   5. Click View (button).

   6. Navigate to the transaction and double click to open it.

   7. Change the Status of the transaction to Pending.

   8. If you are unable to edit the transaction click on (i) next to Menu (button) for the reason why the transaction is read-only.

      1. • For example, if you cannot edit the transaction because it was allocated, click Clear (button) at the top of the Allocation section.

   9. If the transaction becomes editable, you can change the bank account to the correct bank account.

      1. • Remember to re-allocate the transaction by clicking the boxes in the Outstanding section (if applicable).

   10. Click Done (button) to save the changes. 

2. If you are unable to edit the transaction, you can create a Journal Entry to transfer the amounts from one account to the other.

   1. Note: There is no VAT on this transaction because it is a transfer.

   2. If the transaction is an Expense or Supplier Payment:

      1. Navigate to the Ledger (Main Menu > Accounting > Ledger).

      2. From the dropdown list next to Entry Type, select General Journal.

      3. Select New (button).

      4. Select the Date and Period.

      5. Debit the wrong Bank Account and Credit the right Bank Account.

      6. Provide details of the incorrect entry in the description field.

      7. Click Done (button).

   3. If the transaction is Income or a Customer Receipt:

      1. Navigate to the Ledger (Main Menu > Accounting > Ledger).

      2. From the dropdown list next to Entry Type, select General Journal.

      3. Select New (button).

      4. Select the Date and Period.

      5. Credit the wrong Bank Account and Debit the right Bank Account.

      6. Provide details of the incorrect entry in the description field.

      7. Click Done (button).

How to Resolve Stale Cheques

1. Depending on the bank and the country, cheques can become stale if the date on the cheque is older than a certain period (usually 3 or 6 months).

2. If a cheque is still showing outstanding after a certain date, it should be reversed.

   • Note: The reversal will depend on the type of transaction and will include VAT if the original transaction includes VAT.

How to Resolve Entries with Mismatched Amounts

1. If the amount is entered incorrectly, you might be able to edit the transaction and change the amount:

   1. Navigate to Main Menu > Accounting > Ledger.

      1. • Note: If you are busy with the bank recon, double click the entry and the Ledger will open on the right.

   2. Next to Filter select General Ledger Account.

   3. Next to Account select the Bank Account you are busy reconciling.

   4. Set the Date. 

   5. Click View (button).

   6. Navigate to the transaction and double click it.

   7. Change the Status of the transaction to Pending.

   8. If you are unable to edit the transaction, click the (i) next to Menu (button) for the reason.

      1. • For example, if you cannot edit the transaction because it was allocated, click Clear (button) at the top of the Allocation section.

   9. If the transaction becomes editable, you can change the amount.

      1. • Remember to re-allocate the transaction by clicking the boxes in the Outstanding section (if applicable).

   10. Click Done (button) to save the changes. 

2. If you are unable to edit the transaction, you can adjust the entry in the following ways:

   1. If the amount on the bank statement is more than the amount that was entered, enter another identical transaction for the difference.

   2. If the amount on the bank statement is less than the amount that was entered, reverse a portion of the original transaction:

      1. Create a Ledger Transaction for a Supplier Overpayment.

      2. Create a Ledger Transaction for a Customer Overpayment.

      3. Create a General Expense but enter a negative amount.

         • Note: Remember to also include VAT if VAT was claimed on the original transaction.

How to Resolve Missing Customer Receipts

1. If a Customer Receipt shows on the Bank Statement, but not on the Customer Account, enter the Customer Receipt as you would normally enter it.

   1. • Note: Use Ledger > Customer Overpayment if there are no outstanding transactions.

2. If a Customer Receipt shows on the Customer Account but not on the Bank Statement, check:

   1. If the receipt appears on the Bank Statement a few days later. If so, no further action is needed.

   2. If the receipt does not appear on the Bank Statement at all, reverse the receipt (Ledger > Customer Refund) and follow up with the customer and the person who entered the receipt.

How to Resolve Missing Supplier Payments

1. If the Supplier Payment shows on the Bank Statement, but not on the Supplier Account, enter the Supplier Payment as you would normally enter it.

   1. 1. • Note: Use Ledger > Supplier Overpayment if there are no outstanding transactions.

2. If the Supplier Payment shows on the Supplier Account, but not on the Bank Statement:

   1. If a cheque was issued, no further action is needed as the supplier probably has not banked the cheque.

   2. If it was an electronic payment, it is possible that the transaction was not completed. Log in to your bank and check the payment history to see when the last payment was made to that supplier.

      1. If the payment was not made, reverse it in QuickEasy (Ledger > Supplier refund).

      2. If the payment was made, recheck the Bank Reconciliation.

How to Resolve Unentered Transactions

1. You resolve unentered transactions by entering them. 

   1. If you have closed off the previous month you will need to enter the transaction in the current month.

      • Note: A month can be considered closed if:

        • The transaction affects VAT and you have already submitted the VAT return for that month.

        • You have already drawn up and distributed management reports for that month.

        • You have an accounting system that formally closes a month.

   2. If the previous month is still open, you can enter the transaction using its correct date.

How to Print a Bank Reconciliation

1. Display a Bank Reconciliation.

2. Click Output (button) to display a dropdown list.

3. Click Print to print the report to the default printer or click Print (Show Dialogue) to select a printer, for example, a .pdf printer.

How to Display a Bank Reconciliation

1. Display a Bank Reconciliation.

2. Click Output (button) > Preview to display the reconciliation.

   • Note: You can click the printer (icon) to print the statement to a printer of your choice, including PDF.

How to Email a Bank Reconciliation

1. Display a Bank Reconciliation.

2. Click Output (button) > Email to email the Bank Reconciliation in PDF format. 

How to Email a List of Outstanding Items

1. Display a Bank Reconciliation.

2. Click Menu (button) > Email Excel - Outstanding to email a list of outstanding entries.

How to Email the Reconciled Entries

1. Display a Bank Reconciliation.

2. Click Menu (button) > Bank Statement to email a list of reconciled entries.