Bank Reconciliation

The Bank Reconciliation function enables you to reconcile your bank statement with the transactions in the GlobalWare general ledger cash accounts. To reconcile, first clear items that have appeared on the bank statement, then print the report and compare with the statement.

Note: If this is your first bank reconciliation, consider clearing older general ledger transactions by using the Bank Reconciliation Start Date area on the System tab of the System Control screen. For details, see System Tab.

To reconcile cash accounts:

1. On the A/R submenu, click Bank Reconciliation.

   Tip: You can increase the size of this screen by dragging an edge or corner to the desired size. This enables you to more efficiently view and work with data in the Items to Clear grid.

2. Complete the fields as follows:

   Field	Description
   Cash Acct	Select the cash account from the drop-down list.
   Branch	Select the branch from the drop-down list. Only the branches to which the employee has access display. If All is selected, all branches to which the user has access are considered. All is the default. You can also select multiple branches by pressing the CTRL key and clicking multiple branches. If ALL is selected, the Per Check book balance will be the sum of ALL branches for the Cash Acct selected. Note: Although you can select multiple branches, you can select only one chart. If your agency has multiple branches that use one checking account, the same chart must be used for that checking account.
   Recon From…To	Enter the month you want to reconcile.
   Per Bank	(Optional) Enter the balance as shown on the bank statement that you are reconciling.
   Per Checkbook	(Optional) Enter the balance of your manual checkbook as of the ending date.

3. Click SEARCH. The following items display:

• All open items through the specified end (To) date.

• All cleared items that have a post date on or before the end date and have a cleared date within the specified date range.

Clearing Items

There are three types of bank items: checks (sorted by check number), deposits (sorted by post date), and journal entries (all bank entries that are not checks or receipts, sorted by post date).

To view the different types of bank items, click the Checks, Deposits, and Journal Entries tabs in the Items to Clear grid area.

Deposits tab

The DT field on the Deposits tab displays the two-character code for the deposit type (type of cash payment received). This is the type of cash transaction used for the bank deposit receipt, such as PayPal or wire transfer. If you have set up deposit codes in GlobalWare, and if the grid lists a bank reconciliation record for a deposit that has a deposit type associated with it, a deposit type code appears in this field. To set up deposit codes, see Edit Deposit Codes. However, if a deposit has more than one deposit type associated with it (known as a mixed deposit), the DT field will not be populated. To show deposit type codes on this screen for a mixed deposit, use the Bank Deposit function to break up the deposit into multiple deposits so that each deposit has receipts that have the same deposit type. For details, see Creating Deposits and Working with Existing Deposits. Alternatively, you can change the deposit type code for a receipt in the Sub Sr (subsource) field in the Search Results grid on the GL Edit & Query screen. For details, see Editing and Deleting General Ledger Transactions.

Clearing items

To clear (close) an item, double-click the item or select it and press the Spacebar key. When you clear an item, the item is marked closed in the general ledger and the close date is set to the end date. Do the same to unclear (reopen) a previously cleared item.

Updates are made as soon as you double-click or use the Spacebar key. (If you click the exit () icon or press Alt+X, your changes are not discarded.)

Note: Cleared items have a slightly different definition, depending on where you are within Bank Reconciliation.

• Cleared items in the grid are items that are closed and those for which the close date is in the date range.
• The Total Cleared Items (total in the lower left corner) is the sum of all Cleared items.
• Cleared items on the report are items where the close date is in the date range.

If an item's close date is not in the date range, its amount is included in the Total Cleared Items amount, but the item is not in the grid and not on the report. For example, if you backdate a bank reconciliation, the Total Cleared Items amount will not equal the sum of cleared items in the grid. This is also likely to happen if you close in GL Edit & Query rather than Bank Reconciliation, then work on last month’s statement, because close date defaults to system date on which you close in GL Edit & Query.

Printing the Report

When you are finished clearing all checks, deposits, and journal entries for the month, click PRINT to generate the report.

If you run this report as part of your Trial Balance to reconcile to the bank statement for each of your bank accounts, look at the outstanding items at the end of the reconciliation. There should be no + items outstanding (deposits or plus adjustments, unless they are at the very end of the month you are reconciling). You should also dispose of all items older than one year (void them or adjust them off).

Report Example

Bank Reconciliation report example

Report Notes

• Branch: All* in the report header indicates that the user does not have access to all agency branches that this report considers only those branches to which they have access.
• Checks are sorted by check number; deposits and journal entries are sorted by post date.
• The Beginning Book Balance is the balance of chart(s) as of end of the last period.
• The Items Open at Beginning of Month contains items that have a post date before the entered From date.
• The Beginning Bank Balance is the beginning book balance plus items still open as of end of the last period.
• The Checks Cleared During Month lists checks that are cleared and those for which the close date is within the date range.
• The Deposits Cleared During Month lists deposits that have been cleared and those for which the close date is within the date range.
• The Adjustments Cleared During Month lists other items (for example, adjustments, journal entries) that have been cleared and those for which the close date is within the date range.
• The Items Still Outstanding contains items that are not cleared or those for which the close date is after the end date.
• The Ending Bank Balance is the beginning bank balance + cleared items. If the entered Bal Per Bank does not equal the Ending Bank Balance, a line prints under the Ending Bank Balance indicating what the amount should be ("Out of Bal, should be"). An additional line ("Difference") shows the difference between the ending bank balance and out of balance amounts. The difference is highlighted in red.
• The Ending Book Balance is the beginning book balance – previous open items + cleared items + still open items. If the entered Bal Per CkBk does not equal the Ending Book Balance, a line prints under the Ending Book Balance indicating what the amount should be ("Out of Bal, should be").