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Fastbase Accounting System - Online Manual

Bank Reconciliation

Document 103234/1

Entered Mon, 26 May 2003 15:22 by Peter Campbell
Updated Mon, 14 Aug 2006 14:55

Go to Processing -> Cash Book -> Bank Reconciliation

The bank reconciliation process is used to reconcile all bank accounts.

When you first go into this option you are shown a list of bank statements for the default bank account. Change the bank account at the top of the screen as required.

Select an existing bank statement to maintain or reconcile.
Click on the "New" button to enter a new bank statement page.

Before entering a bank statement you must ensure that all transactions have been entered that appear on the statement. This includes entering direct credits from customers as Customer Receipt. Enter all bank fees and interest using the General Ledger - Statement Journal or General Ledger - Cash Payment transactions.

It is very important when entering all banking transactions that the entered date is the date the transaction was done. If it isn't then you may not be able to find the transactions on the bank statement when trying to reconcile it.

If you are starting the bank reconciliation process for an existing bank account which has unpresented cheques, you will need to allow for this. See the note at the bottom of this page for more details.

When entering a bank statement you will be prompted to enter the following details:

Opening Date:
Enter the opening date for the first bank statement. This date automatically carries over from the closing date on subsequent bank statements so can only be entered on the very first bank statement.

Opening Balance:
Enter the opening balance. This can only be entered on the first bank statement.

Page No:
Enter the bank statement page number. When the bank statement page goes back to 1 (as it does for some banks) you will have to add 1000 to the page number (or 2000 and so on). This is because FastBase does not let you use the same page number more than once.

Closing Date:
Enter the closing date as printed on the bank statement.

Closing Balance:
Enter the closing balance. Remember to enter this as a negative figure if the balance is overdrawn (OD).

Oldest Transactions:
This date is used by FastBase to work out how far to go back when processing old transactions carried over (un-presented) from previous bank statements. The computer normally works this out correctly and should not be changed.

Once you have entered the above details and clicked on the "Continue" button the system will process all the necessary transactions before displaying a screen for selecting the bank statement items.

Select each item that appears on the bank statement. Once all items are selected the totals at the bottom of the screen (closing statement balance and selected closing balance) should be equal. Click on the "Reconcile" button to print a reconciliation report. If everything reconciles then the bank statement is flagged as reconciled.

If the bank statement does not reconcile it may be because some transactions have been back dated prior to the last reconciliation or changed. This should normally not be allowed to happen.


Document 103234/2

Updated Fri, 11 Aug 2006 11:47

Duplicate Entries

If an entry appears in the bank statement that has already been presented it may be because it has been entered into FastBase twice by mistake. The easiest way to check this is to do an Account Transaction Enquiry. Enter the correct date range and amount to search. Check each entry that appears to confirm.

If an entry has been entered twice you can delete the old entry only if it is still within the current/open period.

The best practise for removing a duplicate entry is to enter a General Ledger - Statement Journal for the same amount and analysing it to the same gl accounts. Ensure the tax (inclusive/exclusive/none) is set the same as on the original transaction.
When you redo the bank reconciliaton select both items to cancel each other out.

Missing Entries

First check that the transaction has been entered. Do an Account Transaction Enquiry. Enter the correct date range and amount to search.

Check the bank statement opening and closing dates are correct.

Check the transaction date, has it been dated after the bank statement closing date?

Unpresented Cheques

Document 103234/3

Updated Fri, 11 Aug 2006 11:48

If you are starting the bank reconciliation process for an existing bank account which has unpresented cheques, you will need to allow for this.

Create a GL Journal as follows for the total value of all outstanding unpresented cheques as at the first bank reconciliation date.

DR BANK ACCOUNT (to put the money back into the bank)

Each time an old (pre-FastBase) unpresented cheque is presented enter a GL Journal as follows:

CR BANK ACCOUNT (take the money out of the bank)

Make sure the journal is always dated the same date the cheque is presented otherwise the journal will not appear on the bank statement for selection.

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