The Bank Reconciliation feature in Accounting Seed is a tool to verify that all transactions in your bank or credit card account are recorded in the general ledger as cash receipts, cash disbursements, and journal entry adjustments. This can be used for both bank and credit card reconciliations. You will need your statement for the date range selected in the new reconciliation screen to perform this exercise. In the reconciliation you are able to clear four types of transactions:
- Bank Deposit: a group of cash receipts
- Cash Receipt: a single cash receipt
- Cash Disbursement
- Journal Entry Lines
If you are using multi-currency, only the transactions in the bank reconciliation currency are available to select. When you create a new bank reconciliation you also create a currency.
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- Navigate to Accounting Home and under Banking, click Bank Reconciliation.
- Click New.
- Enter the following four fields of information from your statement:
- Note: If this is a bank reconciliation, beginning and ending balances should be positive, unless the account is overdrawn. If this is a credit card reconciliation, these should be negative numbers since the credit card is a liability. If the credit card account started with a balance and was completely paid off, then the beginning balance would be negative and the ending balance would be $0.
- Start Date
- End Date
- Currency if multi-currency is enabled
- Beginning Balance
- Ending Balance
- Accounting Seed supports foreign currency bank and credit card reconciliations. This step applies only to the clients who have multi-currency enabled in Accounting Seed and have foreign currency bank and credit card statements. Only Bank Deposits, Cash Receipts, Cash Disbursements, and Journal Entries of that currency will be available for the bank reconciliation.
Generate a PDF Report
- On the Bank Reconciliation page click the Create Reconciliation Report button.
- On the Bank Reconciliation Report page click the Create and Attach Reports button. Two PDF reports will be generated and automatically attached to the Bank Reconciliation in the Files related list:
- Bank Reconciliation Report Cleared
- Bank Reconciliation Report Uncleared
- Review the Uncleared Transactions report. This report will identify all deposits-in-transit and outstanding checks as of the Bank Reconciliation end date. You may then use this report to create a Bank to General Ledger reconciliation. Additionally, you can use this report to identify any old transactions created in Accounting Seed by error and never cleared in your bank/credit card account. These should be unposted and deleted.
- Typically there are no uncleared deposits or cash receipts
- Uncleared cash disbursements typically show checks to vendors that were issued, but not cashed yet.
Bank Reconciliation has been extended to support multi-currency.