User Guide: Bank Reconciliation Screen

Overview

Bank reconciliation screen provides a user-friendly interface to review and reconcile bank account transactions, ensuring that the records match the bank's records. Users can access the bank reconciliation screen from the top-left menu.

1. Filters

When the "Bank Reconciliation" button is clicked, users are presented with various filtering options to refine the data they want to view. These options include:

· Date Range: Users can specify a range of dates for the transactions they want to reconcile.

· Bank Account: Users can select the bank account they want to reconcile from given list

· Option to Choose Uncleared Documents: Users can opt to view only uncleared documents, which are transactions that have not yet been reconciled.

· Print: Print document for further use

2.Searching Data:

After entering the required filtering information and clicking the search icon, the system retrieves and displays data for inward and outward transactions. Opening balance for the particular bank is also shown.

Inward Transactions

Inward transactions refer to money coming into the bank account (e.g., deposits). The data for inward transactions is further categorized into cleared cheques, uncleared cheques and other transaction.

The information for cleared and uncleared cheque is presented in a tabular form consisting of following heads

· Document Date: The date when the transaction occurred.

· Document Code: Reference code for the transaction.

· Parties' Name: The name(s) of the parties involved in the transaction.

· Cheque Number: The cheque number associated with the transaction along with cheque date.

· Cleared Date: In case of cleared cheque cleared date is the date on which an uncleared cheque is cleared or reconciled. In uncleared cheque user has option to assign.

· Amount: The monetary value of the transaction.

Totals amount for cleared cheques, uncleared cheques and total amount of inward transaction is also presented after each category.

Outward Transaction

Outward transactions refer to money leaving the bank account, which can include payments to suppliers, withdrawals, and other types of expenses or transfers. Similar to inward transactions, outward transactions are further categorized into the following:

· Cleared Cheques: Transactions that have been reconciled and cleared.

· Uncleared Cheques: Transactions that have not yet been reconciled.

· Other Transactions: Any additional types of outward transactions that may not involve cheques.

Data Presentation:

The outward transaction data is presented in a table format, which include the following columns:

· Document Date: The date when the outward transaction occurred.

· Document Code: A unique identifier or reference code for the transaction.

· Supplier: The name or details of the supplier or recipient of the payment.

· Cheque Number: The cheque number associated with the transaction (if applicable).

· Cleared Date: The date on which a cheque or transaction is cleared, applicable for cleared cheques.

· Amount: The monetary value of the outward transaction.

Total Amounts:

The screen provides totals for different categories of outward transactions:

• Total Cleared Cheques: The sum of all outward transactions that have been cleared and reconciled.
• Total Uncleared Cheques: The sum of all outward transactions that are still pending reconciliation.
• Total Paid Amount: The sum of all outward transactions, whether cleared or uncleared.

Retain Option for Cleared Cheques

1.Assess:

On the right side of the screen, under cleared cheques, there is a "Retain" icon. Clicking this icon triggers the retention of detailed information related to a cleared cheque.

2.Pop-up Window:

When the "Retain" icon is clicked, a pop-up window appears, displaying information related to the cleared cheque. This pop-up window typically contains the following details:

• Cheque Date: The date on which the cheque was issued.
• Cheque Number: The unique identifier for the cheque.
• Cheque Amount: The monetary value of the cheque.

3.Table with Transaction Details:

Within the pop-up window, there is a table that provides additional transaction details. This table include columns such as:

• Date: The date of the transaction.
• Description: A description of the transaction, which include the parties' names involved. The timestamp indicating when the transaction occurred.
• Transaction amount: Amount of money involved in each transaction.
• Document amount: This could be the total amount associated with the document or transaction.
• Other Allocation Amount: Any additional allocations related to transaction.
• Balance Amount: The balance amount after each transaction.

4.Icons for Actions:

Towards the right side of the pop-up window, there are typically two icons that allow users to perform actions related to the cleared cheque:

• Close Icon: This icon allows users to close the pop-up window.
• Retain Document Icon: Clicking this icon is to confirm the retention of the document, which means that detailed information about the cleared cheque and its associated transactions will be saved for reference.

Assign Option for Uncleared Cheques

1.Assess:

Can be assessed from uncleared cheques in Bank reconciliation of the menu

2. Pop-up Content:

• Document Code: A unique identifier or reference code for the document or transaction.
• Cheque Date: The date when the cheque associated with the transaction was issued or processed.
• Cheque Number: The unique identification number assigned to the cheque.
• Cheque Amount: The monetary amount specified on the cheque.
• Balance Amount: The remaining balance amount that needs to be allocated.
• Additional Details: It provides information about how the payment was made, such as "Online Payment”, Indicates whether the payment was made in installments specific bank account related to the transaction. Additional information about the cheque, if available.

3.View Unallocated Bank Transactions:

Users have the option to either view unallocated bank transactions for a specific date or click on a "Show All" icon to view a detailed list of unallocated bank transactions. This provides flexibility in managing and allocating funds.

4. Unallocated Bank Transaction Table:

· Date: The date of each unallocated bank transaction.

· Description: A description that provides more information about each transaction.

· Transaction Amount: The monetary value of each unallocated bank transaction.

· Previously Allocated Amount: This may show any amount that was previously allocated to a transaction, helping users track changes.

· Balance Amount: The remaining balance amount for each unallocated transaction.

· Allocate Amount: Users can input the amount they want to allocate to each transaction in this column.

· Action: Users can choose to use a small checkbox to allocate the entire cheque amount to a specific transaction.

5. Allocate Amount:

Users can manually allocate amounts by entering values in the "To Allocate Amount" column or click on check box under action for each unallocated bank transaction. As amounts are allocated, the balance amount decreases accordingly.

6. Close and Assign Icons

· Close Icon: This icon likely allows users to exit the pop-up.

· Assign Icon: Clicking this icon confirms the user's intention to assign the allocated amounts to the uncleared cheque and saves the changes.

3.Book Summary

The "Book Summary" section at the bottom of the bank reconciliation screen provides a concise summary of key financial information related to the bank account being reconciled. It helps users quickly assess whether their accounting records align with the bank's records

· Opening Balance: This is the balance of the bank account at the beginning of the reconciliation period. It reflects the amount of money in the account before any of the transactions included in the reconciliation process occurred.

· Total Inward Transaction: This represents the sum of all inward transactions, which include deposits and any other money received into the bank account during the reconciliation period.

· Total Outward Transaction: This is the total of all outward transactions, including payments, withdrawals, and other deductions from the bank account during the reconciliation period.

· Closing Balance: The closing balance is the balance of the bank account at the end of the reconciliation period. It is calculated by adding the opening balance to the total inward transactions and subtracting the total outward transactions.

· Stated Bank Balance: This is the balance reported by the bank in its statement for the same period. It represents the bank's view of the account's balance, which may include transactions that haven't yet been recorded in your accounting system.

· Difference: The difference between the closing balance and the stated bank balance indicates the variance or discrepancy between your records and the bank's records. If these two balances match, the difference should be zero. However, if there are discrepancies, it may indicate errors or missing transactions that need further investigation and correction.