Bank and Credit Card Reconciliation

Overview

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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Steps

1. Navigate to Accounting Home and under Banking, click Bank Reconciliation.
2. Click New.
3. 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
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. 
   • 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.
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. Select items from the Cleared Transaction list and click the Unclear Selected button to 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.

Generate a PDF Report

1. On the Bank Reconciliation page click the Create Reconciliation Report button. 
2. 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
3. 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.

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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Release Notes and Schedule

Bank Reconciliation has been extended to support multi-currency.