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 statement end date selected in the new reconciliation screen to perform this exercise. In the reconciliation you are able to clear four types of records:
- Bank Deposit: a group of Cash Receipts and/or Journal Entry Lines
- 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. Keep the following points in mind:
- If a Bank Reconciliation’s currency is equal to the Ledger’s currency, the source records that will be available to be reconciled can have any currency.
- If a Bank Reconciliation’s currency is not equal to the Ledger’s currency, the source records that will be available to be reconciled must equal the Bank Reconciliation’s currency.
Bank and Credit Card Reconciliation
- Navigate to Accounting Home and under Banking, click Bank Reconciliation.
- Click New.
- Enter the following four fields of information from your statement:
- Start Date
- You are able to clear up to 4000 transactions in one bank reconciliation. If your transactions exceed this amount, then use your Start Date and End Date to reduce the population size to meet this criteria. If this is not applicable to you, you should set your Start Date far enough in the past to make available all prior uncleared transactions in your bank reconciliation.
- End Date
- Beginning Balance
- Note: Unless this is the first bank reconciliation for the account, the beginning balance will auto-populate with the ending balance from the prior period’s bank reconciliation.
- 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.
- Select the GL Account that represents the bank or credit card account in Accounting Seed.
- Select the Ledger where these transactions are recorded.
- 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.
- Click the Save button.
- Click the Clear/Unclear Transactions button which will take you to the Clear/Unclear transactions screen.
- 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.
- 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.
- For faster processing, the Cleared Date field will auto-populate on Cash Disbursements, Cash Receipts, and Journal Entries matched or created in Bank Direct Connect and in Financial File Import. Additionally, the Cleared Date field will auto-populate on Bank Deposit records matched in Bank Direct Connect and in Financial File Import. Bank Reconciliation records that have the Cleared Date field populated will be auto-checked in the Bank Reconciliation’s Uncleared Transactions table to aid in reconciliation.
- Click the Clear Selected button. The items will move to the Clear Transactions lower left pane.
Note: In the event that you need to move a Cleared Transaction back to the Unclear Transaction status, simply select the item(s) and click the Unclear Selected button. This will move the item(s) back under the Uncleared Transactions.
- The reconciliation is complete when the total cleared deposits and disbursements match your statement and uncleared amount equals zero.
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 outstanding checks to vendors that were issued, but not cashed yet.
- For faster processing, the Cleared Date field will now auto-populate on Cash Disbursements, Cash Receipts, and Journal Entries matched or created in Bank Direct Connect and in Financial File Import. Additionally, the Cleared Date field will auto-populate on Bank Deposit records matched in Bank Direct Connect and in Financial File Import. Bank Reconciliation records that have the Cleared Date field populated will be auto-checked in the Bank Reconciliation’s Uncleared Transactions table to aid in reconciliation.