Reconciling Bank Statements in the Banking Module

Post date: Aug 13, 2020 5:17:7 PM

First step: From the main menu, go into the 'BK Bank Functions (1136)' menu, then choose 'BK Edit Statements (48)'.

If you are starting to edit a new statement, choose the bank form the drop down list on the right, and click 'Add New Statement':

The next screen will display a list of ALL the unreconciled transactions from the system.  Normally it will include any cash receipts coming in from the AR module, and any payments coming in from the AP module.  (IF you are not using the AP module, then payments can be IMPORTED into the bank reconciliation function to allow them to be listed on this screen.)

To begin reconciling a bank statement, enter the Statement date, the Adjusted Bank Balance, and the General Ledger Balance for the bank account you are reconciling.  These amounts will immediately appear among the 'Totals' at the bottom of the screen, and the other values there are then calculated as well.

To get the 'adjusted bank balance', start with the bank statement balance and ADD any payments that have already reached the bank, but might not yet be entered and posted into the SMCP system.  This might include a bank note, for example, that's already reflected in the bank statement, but not yet entered into SMCP or imported into the bank reconciliation. And SUBTRACT any deposits that may, for example, have gone directly to the bank, but have not yet been entered and posted in an Accounts Receivable cash batch.

For the 'General Ledger balance', enter the current balance of your bank GL account.  If you're using the SMCP GL module, you can see this on the Trial Balance, for example.

Listed below these fields, in the green area, you'll see all the transactions that have come into the system (from AR, AP, or through imports) since you last reconciled.  Check each one that appears in your bank statement as 'Cleared'.  As you mark transactions as 'cleared', the balances in the 'Totals' at the bottom will instantly be updated.

When you've 'cleared' all the transactions in the statement, the 'CALCULATED GL BALANCE' and the 'ENTERED GL BALANCE' in the purple 'Totals' section at the bottom should match.  When that's the case, you can 'Post' the statement.  Posting permanently saves the statement as it is, and doesn't allow any further editing.  When you receive your next month's bank statement, 'Add' a new bank statement and repeat the process.