Bank reconciliation is the act of comparing your bank account with the bank statement, locating the differences, and adjusting or settling the differences to bring them into agreement or at least understanding and documenting the differences between the two.
Bank reconciliation should be performed on time each month. To maintain control over the cash balance, someone independent of cash receipts and disbursements should preferably do it. The independent reconciliation provides an opportunity for internal verification of bank receipts and payment transactions.
Bank reconciliation is performed for two reasons:
- To reconcile the closing bank balance as per the bank statement with the bank balance as per your records.
- To arrive at the correct bank balance for reporting in the balance sheet.
Prerequisites:
- You can carry out bank reconciliation for any account that is set up as a bank account in OnCloud.
- Respective journals (Payment/Receipt/General)should be posted.
Menu Path: Finance > Transactions > Bank Reconciliation
- For Bank Reconciliation, all the Journals should be Posted
Menu Path: Finance > Bank Reconciliation> Select the Bank Account
- Enter the Bank Statement Balance and the statement Date and Click on Next
- The current Balance shows the amount of both posted and unposted Journals
- Account Balance shows the amount of posted Journals
Select the Journals
NOTE : If there is still a difference between the Bank Statement and System amount, and you have missed posting some of the Journals in the System Save the Bank Reconciliation process
- Now you need to post the relevant Journals and resume the Bank Reconciliation process
- The Reconciliation process will resume from the previous saved process
- To tally the difference amount, you can repeat steps or add Adjustment entries
- User Should select “Save & Exit” till all entries reconciliation are completed successfully
Bank Reconciliation Report
Menu path: Finance > Reports > Bank Reconciliation
To know more, Click here.
