Background: Bank Reconciliation
Use the Bank Reconciliation (NBC) program to set up a cash account for reconciliation, enter bank statement transactions, select checks and deposits to clear, and print the Bank Reconciliation Register and clear transactions. The Bank recon interfaced to GL? accounts payable system option (maintained in System Options Maintenance - XM) controls whether general ledger posting is automated.
See Road Map for work flow.
This topic has these subtopics:
Setup
Bank reconciliation is available if you selected the Bank reconciliation system active? option in System Options Maintenance - Accounts Payable Options. The system passes all payments processed with the AP Payment Register (NCR) program to the bank reconciliation program. The system removes a payment you reverse or void it in the AP Payment Reversal (NVC) program and print the register. When you select the Bank reconciliation system active? option, the system updates cash payments recorded in the Cash Receipts Entry (RCE) program to the bank reconciliation program.
To access payment records for reconciliation purposes, you must first set up a passbook number for a bank account and establish a starting balance (bank statement or GL account balance). You can enter the starting balance as a deposit when you click Transactions. You need to establish the passbook number only once; however, you can change it, if necessary.
After you have established the passbook number and statement date for a bank account, the bank reconciliation program displays the checks for that bank account. You can select individual checks and deposits or a range of numbers.
GL Interface
If you want bank reconciliation interfaced to the general ledger, select Bank recon interfaced to GL in System Options Maintenance - Accounts Payable Options.
This enables posting from the General Journal (GIP) register to the bank reconciliation system when:
Bank reconciliation is active and interfaced to GL
The account being used is marked as a Cash account (subtype C in GL Account Maintenance)
The account being used is one listed for reconciliation in the Bank Reconciliation (NBC) program
It also allows for the bank reconciliation system to post to the GL. When the following types of transactions are entered in the Bank Reconciliation (NBC) program, they are updated to GL when the register is run:
miscellaneous
service charge
interest
transfer
The G General Journal transaction type does not post to the GL. It is used for transactions that were already recorded in General Journal (GIP), as might be the case when you are setting up a new bank account in Bank Reconciliation (NBC).
Register
The Bank Reconciliation register performs these functions:
Removes selected checks and deposits from the Bank Reconciliation program.
Updates the Statement balance to the Starting balance fields in the Bank Reconciliation program.
Clears the Transactions total, Cleared checks, and Cleared deposits fields in the Bank Reconciliation program.
Posts and miscellaneous, service charge, interest and funds transfer transactions to GL, if interfaced. Transactions entered with the G General journal type are not posted.
The Bank Reconciliation register prints a statement of transactions and paid checks as a permanent record of each bank account. When the register prints correctly, you can clear the transactions and paid checks printed on the register.
The register includes this information:
Bank organization code and description
Bank account number and description
Passbook number
Starting balance
The register includes this information for each transaction:
Check, transaction, or deposit number
Transaction date
Transaction comments
Transaction amount
Ending balance