Bank and Credit Card Reconciliation

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
 

Creating a Bank or Credit Card Reconciliation

Summary of Steps:

  1. Navigate to Accounting Home and under Banking, click Bank Reconciliations.
  2. Click the New Bank Reconciliation button.
  3. Enter the following four fields of information from your statement:
    • Start Date
    • End Date
    • Beginning Balance
    • Ending Balance
      • 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.
  4. Select the GL Account that represents the bank or credit card account in Accounting Seed.
  5. Select the Ledger where these transactions are recorded.
  6. Select the Currency in which these transactions are recorded.
    • Note: Effective with our Echinacea Release, 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.
  7. Click the Save button.
  8. Click the Clear/Unclear Transactions button which will take you to the Clear/Unclear transactions screen.
  9. In the lower right pane you will see all Bank Deposits, Cash Receipts, Cash Disbursements, and Journal Entry Lines in the selected date range that are not associated with another reconciliation along with a link to their individual source record. You are able to increase and decrease the date range to find more transactions.
  10. Select the transactions that have cleared in your statement. Enter the correct cleared date per the statement if different from the transaction date recorded in Accounting Seed.
  11. Click the Clear Selected button
  12. Selecting items from the Cleared Transaction list and clicking the Unclear Selected button will send these items back to the Uncleared Transactions list
  13. The reconciliation is complete when the total cleared deposits and disbursements match your statement and uncleared amount equals zero.
  14. Click the Create Reconciliation Report button to generate the PDF report.
    • Click the Create and Attach Reports button to attach the PDF report of the bank reconciliation.  
    • Note: Accounting Seed recommends as best practice that the completed bank reconciliation PDF be saved and attached to the Bank Reconciliation record prior to completing the next subsequent period reconciliation. The PDF report generated contains a list of the current uncleared transactions in the system at the time the report is generated.
  15. Review the Uncleared transactions section of the reconciliation report. Any transactions created in Accounting Seed by error and did not actually happen in your bank/credit card account should be unposted and deleted.

Reconciling a Bank Account Notes:

  • Typically there are no uncleared deposits or cash receipts
  • Uncleared cash disbursements typically show checks to vendors that were issued, but not cashed yet.
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8 Comments

  • 1
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    Jeanae Remala

    Please consider adding the Bank Reconciliation field to the Journal Entry header.  This would be helpful information, as "un-associating" with bank rec is required to unpost a GL entry to change a GL Variable on it that was entered incorrectly.  (I actually field the GL variable field should be editable without unposting the entry!).

    Thanks!

    Journal Entry Detail

  • 0
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    Ryan Faulkingham

    Hi Jeanae,

    This can be added to the JE line. If you are on the journal entry header screen, you will see the journal entry lines related list. If you edit this, you can add the bank rec field as a column. Will this work for you? 

    The reason that we don't have it on the header is because a JE can have multiple lines that are related to different bank recs. 

    Thank you,

    Ryan

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  • 0
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    Jeanae Remala

    We have approximately 40 corporate cards at this time, with the number increasing as we expand.  Does this require approach require separate General Ledger accounts for each credit card?  Also, our team is trained to enter their credit card expesnes in an "Expense Report" and attach the receipts.  Currently, you don't have any sort of similar process, correct?  Your system requires separate general ledger entries for each credit card receipt, correct?

  • 0
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    Rebecca Ralls

    Hi Jeanae,

    There is an expense report feature that you can use for managing corporate cards - I've done it with other clients. It works quite well. You can upload their statements into the expense report format, and then they can code their own expenses and attach receipts to the expense report record.  Once approved, the expense report can be turned into a payable to be paid.

    Each user that will be coding their own expenses has to have an Accounting Seed license.  

  • 0
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    richa

    Team,

    Is there a way for doing reconciliation in mass update? We know it's not a good idea for auditing purpose but we are curious if this could be done via excel sheet and then uploading it back.

  • 0
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    Ryan Faulkingham

    Hi Richa,

    Currently, this must be done in the system, but we are looking to allow for open API for this reason. 

    Thank you,

    Ryan

  • 0
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    richa

    Thanks Ryan, that will be really helpful.

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