From the Write Up menu, select Bank Reconciliation.
See Bank Reconciliation Options at the end of this topic.
Following are explanations and instructions for the various sections of the screen:
Select the Bank Account that you will be reconciling from the drop down list of available accounts at the top of the screen. See Options at the end of this topic for information regarding which GL Accounts are available in the drop list. The screen will open with the last bank account you used in the Write Up/Checks screen selected.
The selections at the upper right of the screen control what type of items you will be working with. Notice that when Chks & Ded is selected, only checks and other deductions appear in the clearing grid in the lower right of the screen.
Bank - Enter the ending balance from the bank statement. The Variance is a calculated value showing the amount that still needs to be cleared. When the Variance for the Bank is 0.00 then all items have been cleared and the bank statement is in balance with the data in the client file.
Client - Enter the ending balance from the client's last check stub for the period. The Variance is a calculated value showing the difference between the balance on the client's last stub and what it should be. If the Bank Variance is 0.00 but the Client variance is not, then one of the following conditions exist:
The client has made calculation errors on the stubs. If this is the case, locate errors and record them in the Corr (Sh+F6) dialog.
If you have selected the option at the bottom left of the screen, Don't include other ded/add in corrections, then perhaps not all of the Deductions (Shift+F7) and/or Additions (Shift+F8) have been manually entered in the Corr (Sh+F6) dialog. If you have not selected the Don't include other ded/add in corrections option, then you must not include manual corrections in the Corr (Sh+F6) dialog.
The amount of adjustments for all items that have been corrected in the source journals (i.e., Write Up/Checks) may not have been recorded in the Corr (Sh+F6) dialog.
Book - Displays the ending balance in the bank account from the client file.
With the exception of the Corr (Sh+F6) button, all of these items are used in the Heads-Down Clearing Method described below. The Corr (Sh+F6) button will be used in both the Heads-Down Clearing Method and the Visual Clearing Method.
Click the Unresolved () button or tap the Down Arrow on your keyboard to move the information in the Number and Amount boxes (which you entered using the Heads-Down Clearing Method) into the Unresolved grid below. Unresolved is used to record items that are found on the bank statement but an exact match cannot be found in the Checks/Deductions or Deposit/Additions grid at the lower right. See Heads-Down Clearing Method below for instructions.
Corr (Sh+F6) - Click on this button or use the Shift + F6 keys on your keyboard to open the Corrections dialog screen. Record any corrections that are necessary to bring the client's check stub balance in balance with the reconciled balance.
Click the Drill-down (Sh+F11) button or press Shift+F11 to drill down to the source journal (i.e., Write-Up Checks, etc.) to adjust an item that has cleared the bank for a different amount than was found on the client's stubs. The Check or Page Number entered in the Number box is the transaction that will be open in the source journal.
Enter all Deductions that are found on the bank statement and that were not recorded on the client's stubs. These entries will automatically be added to and cleared in the Checks/Deductions clearing grid below.
If you have selected the Don't include other ded/add in corrections at the lower left of the screen, then you will need to record the total of all items in this grid, either in detail or in sum, in the Corr (Sh+F6) dialog for the Client Balance and Bank Reconciliation report to be correct.
If you have not selected the Don't include other ded/add in corrections at the lower left of the screen, then you do not record any of the amounts in this grid in the Corr (Sh+F6) dialog as the Client Balance and Bank Reconciliation report will automatically include these.
Enter all Additions that are found on the bank statement and that were not recorded on the client's stubs. These entries will automatically be added to and cleared in the clearing grid below.
If you have selected the Don't include other ded/add in corrections at the lower left of the screen, then you will need to record the total of all items in this grid, either in detail or in sum, in the Corr (Sh+F6) dialog for the Client Balance and Bank Reconciliation report to be correct.
If you have not selected the Don't include other ded/add in corrections at the lower left of the screen, then you do not record any of the amounts in this grid in the Corr (Sh+F6) dialog as the Client Balance and Bank Reconciliation report will automatically include these.
The Unresolved grid is used to place items found on the bank statement that cannot be located in the list of Outstanding Checks or Outstanding Deposits. This grid is used in the Heads-down clearing method.
The Heads-Down method of clearing checks is the recommended method for use by experienced bookkeepers with good ten keypad experience as it is more accurate and faster than the Visual method.
Enter the ending bank balance from the bank statement and the client's ending balance from the last stub for the period.
Click Chks & Ded (Shift+F4) at the top right of the screen.
Enter items from the bank statement in the Number and Amount fields (upper left of screen):
Enter the check number from the bank statement in the Number field for checks. Enter an asterisk (*) in the Number field for other items on the bank statement that do not have numbers.
Press the Enter key. If the number is found or if an asterisk was entered, the cursor will advance to the Amount field. If a number is entered which is not found in the list of outstanding items (lower right grid), the computer will beep and the cursor will not advance.
Enter the amount of the item from the bank statement in the Amount field and press Enter.
If a matching item was found in the list of outstanding items, the Clr box for the item will automatically be checked and the cursor will advance to the Number field with the number automatically incremented to the next number. If this is correct, press Enter and proceed with the amount for the next item. If it is not correct, type in the correct number and proceed.
If the matching item was
not found for the amount entered, the computer will beep and the cursor
will not advance.
Item found with different amount
If the item was a check with a number and the item was found but
cleared for a different amount, press Shift
+ F11 (or locate the item in the outstanding grid and double
click the row with your mouse). The journal in which the item was
recorded will be presented for you to change the amount to the proper
amount. When you have changed the amount click the Save
and Close icon at the top of the journal screen.
You then will be presented the Corrections
list with the item recorded. If the client had incorrectly recorded
the amount on the check stub, accept the correction (edit as desired).
If you had incorrectly recorded the amount in the journal, delete
the correction by changing the Amount
in the corrections grid to "0"
and backspacing out the description.
Item not found
If the item did not have a number (*) and a match could not be
readily located, press the Down Arrow
key (or click the Unresolved
button with your mouse) to place the item in the Unresolved
grid to be handled later.
Continue step 3 until all checks and deductions are cleared or recorded in the Unresolved grid.
Click Dep & Add (Shift+F5) at the top right of the screen and proceed through step 3 until all items are cleared or recorded in the Unresolved grid.
Resolve items in the Unresolved grid. Often,
unresolved items are the result of banks combining transactions (i.e.,
deposits) during the day.
Therefore, the client will have two or more deposits for one deposit
that the bank shows.
At the top right of the screen, select Chks & Ded to resolve checks and other deductions (or Dep & Add to resolve deposits and other additions).
You can quickly resolve these by clicking the checkbox in the ? columns of both Unresolved and outstanding items (lower right) grids next to likely matches. The Variance total at the bottom of the screen will show if a match was found or not. This could mean that the variance is 0.00 or it could be some amount where the % total equals the credit card discount for the deposit.
When a match is found, simply press Shift + F12 (or click the Clear button) and the checked items in the Unresolved grid will be removed, the ? checked items are cleared in the outstanding items grid. Any variance amount will be recorded in a row of either the Deductions or Additions grids (upper center and right). When there are variance amounts, enter the account that the new Deduction or Addition item will be posted to.
If a match cannot be found for an item in the Unresolved grid, click the ? box for the item and press Shift + F12 (or click the Clear button) to move the item to the appropriate Deductions or Additions grid. Enter the account the item is to be posted to and any other information required for the transaction.
When all items on the bank statement are cleared correctly, the Variance for the Bank (upper left of screen) will be 0.00 (zero).
If there are no addition errors on the client's bank stub, the Variance for the Client (upper left of screen) should be 0.00 (zero). If this is not the case, locate the discrepancies and press Shift + F6 or click the Corr (Sh+F6) button to record the corrections.
Enter the ending Bank balance from the bank statement and the Client ending balance from the last stub for the period.
Click Chks & Ded (Shift+F4) at the top right of the screen.
Visually compare items the check and deduction items on the bank statement to the items in the Checks/Deductions or Deposits/Additions grid at the lower right of the screen. Using your mouse, click the Clr box to clear or unclear an item.
If an item is found that has cleared but for a different amount than you see in the grid, then double-click anywhere on the line for that item to drill-down to the source journal (i.e., Write Up/Checks, etc.). Correct the item as necessary. When you have changed the amount, click the Save and Close icon at the top of the journal screen. You then will be presented the Corrections list with the item recorded. If the client had incorrectly recorded the amount on the check stub, accept the correction (edit as desired). If you had incorrectly recorded the amount in the journal, delete the correction by changing the Amount in the corrections grid to "0" and backspacing out the description.
Record any items that you find in the bank statement that were not recorded on the client's stubs in the appropriate Deductions or Additions grids above.
Repeat steps 3 through 5 until all checks and deductions have been handled.
Click Dep & Add (Shift+F5) at the upper right of the screen and repeat steps 3 through 5 until all deposits and additions have been handled.
When all items on the bank statement are cleared correctly, the Variance for the Bank (upper left of screen) will be 0.00 (zero).
If there are no addition errors on the client's bank stub, the Variance for the Client (upper left of screen) should be 0.00 (zero). If this is not the case, locate the discrepancies and press Shift + F6 or click the Corr (Sh+F6) button to record the corrections.
Range of Checks Clearing Method:
The range of checks clearing method is designed to clear a range of checks that have a check numbers. Check numbers that have alpha characters will not be included in the range.
1. Enter the letter r in the Number field and press Enter.
2. A dialog will appear where you enter the range of checks you want to clear. Press Enter to add another range of checks to clear. When done, click Clear or press Enter without entering a From number and then press the Space bar.
3. A checkmark will be placed in the Clr box for the check range(s) you entered.
To import a bank statement:
Log onto the customer's online banking account. If you reconcile the client's Credit Card statements in the Bank Reconciliation screen you can import the Credit Card Statements using the same format and steps as for Bank Statements.
Go to the Bank Statement area and select the desired bank statement.
Look for links to Download the statement. Every bank will present this somewhat differently so you will need to look around; however, most banks offer this feature.
Select the QIF,
or Quicken QIF format.
Again every bank will present this somewhat differently but most
banks offer this format.
Following are examples from three different banks:
Example 1:
Example 2:
Example 3:
Download the file to the desired path on your system.
Open the company file and select Write Up/Bank Reconciliation.
Select the desired Bank Account.
Click the Import
Bank Statement button.
Browse to the path for the QIF file you just downloaded.
Select Try to clear non-checks if you want the system to try to locate items that do not have a check number on the bank statement by amount and appropriate date. An appropriate date is where the item is dated earlier in the customer's file than the date on the bank statement.
Click OK.
All matching Checks and other items (depending upon your setting of the Option in step 10) will be cleared automatically. All non-matching items will be placed in the Unresolved grids for both Checks/Deductions and Deposits/Additions. Clear these items using the instructions in Heads-Down Clearing Method.
Include Cash Type Account
Yes - Includes all GL Accounts with a Type of Checking and Cash in the Bank Account drop list at the top of the screen.
No - Includes GL Accounts with a Type of Checking in the Bank Account drop list at the top of the screen but not accounts with the Type of Cash.
Include Accounts Payable Type Accounts
Yes - Adds all GL Accounts with a Classification of Current Asset and a Type of Accounts Payable in the Bank Account drop list at the top of the screen.
No - Does not any additional GL Accounts in the Bank Account drop list at the top of the screen other than the Cash and/or Checking Type as defined in the previous option.