Following are explanations and instructions for the various sections of the window, with screenshots of each section above the description:
Select the Bank Account to be reconciled from the drop-down list of available accounts at the top of the window. See the Options at the end of this topic for information regarding which GL Accounts are available in the drop-down list. The window will open with the bank account that was last used in Write Up>Checks selected.
The selections at the upper right of the window control what type of items will be displayed in the clearing grid in the lower right side of the window. When Chks & Ded is selected, only checks and other deductions appear in the clearing grid.
Bank—Enter the ending balance from the bank statement. The Variance is a calculated value showing the amount that still needs to be cleared. When the Variance for the Bank is 0.00, that means all items have been cleared and the bank statement is in balance with the data in the client file.
Client—Enter the ending balance from the client's last check stub for the period. The Variance is a calculated value showing the difference between the balance on the client's last stub and what it should be. If the Bank Variance is 0.00 but the Client variance is not, then one of the following conditions exist:
The client has made calculation errors on the stubs. If this is the case, locate the errors and record them in the Corr (Sh+F6) dialog box.
If the option Don't include other ded in corrections or Don't include other add in corrections is chosen, then perhaps not all of the Deductions (Shift+F7) or Additions (Shift+F8) have been manually entered in the Corr (Sh+F6) dialog box. If the Don't include other ded/add in corrections options have not been selected, do not include manual corrections in the Corr (Sh+F6) dialog box.
The amount of adjustments for all items that have been corrected in the source journals (i.e., Write Up>Checks) may not have been recorded in the Corr (Sh+F6) dialog box.
Book—Displays the ending balance in the bank account from the client file.
The Number and Amount fields are used in the Heads-Down Clearing Method described below. The Unresolved command and the Corr (Sh+F6) button will be used in both the Heads-Down Clearing Method and the Visual Clearing Method.
Click the Unresolved () button or press the down arrow to move the information in the Number and Amount boxes (which was entered using the Heads-Down Clearing Method) into the Unresolved grid below. Unresolved is used to record items that are found on the bank statement, but an exact match cannot be found in the Checks>Deductions or Deposit>Additions grid at the lower right. See Heads-Down Clearing Method below for instructions.
Corr (Sh+F6)—Click on this button or use the Shift + F6 keys to open the Corrections dialog box. Record any corrections that are necessary to bring the client's check stub balance in balance with the reconciled balance.
Enter all Deductions that are found on the bank statement and that were not recorded on the client's stubs. These entries will automatically be added to and cleared in the Checks>Deductions clearing grid below.
If Don't include other ded in corrections at the left of the window is selected, record the total of all items in this grid, either in detail or in sum, in the Corr (Sh+F6) dialog box for the Client Balance and Bank Reconciliation report to be correct.
If Don't include other ded in corrections is not selected, do not record any of the amounts in this grid in the Corr (Sh+F6) dialog box as the Client Balance and Bank Reconciliation report will automatically include these.
Enter all Additions that are found on the bank statement and that were not recorded on the client's stubs. These entries will automatically be added to and cleared in the clearing grid below. If Don't include other add in corrections at the left of the window is selected, record the total of all items in this grid, either in detail or in sum, in the Corr (Sh+F6) dialog box for the Client Balance and Bank Reconciliation report to be correct.
If Don't include other add in corrections is not selected, do not record any of the amounts in this grid in the Corr (Sh+F6) dialog box, as the Client Balance and Bank Reconciliation report will automatically include these.
The Unresolved grid is used to place items found on the bank statement that cannot be located in the list of Outstanding Checks or Outstanding Deposits. This grid is used in the Heads-down Clearing method.
Heads-Down Clearing Method
The Heads-Down method of clearing checks is the recommended method for experienced bookkeepers with good ten keypad experience. It is faster and more accurate than the Visual method.
Enter the ending bank balance from the bank statement and the client's ending balance from the last stub for the period.
Click Chks & Ded (Shift+F4) at the top right of the window.
Enter items from the bank statement in the Number and Amount fields (upper left of window):
Enter the check number from the bank statement in the Number field for checks. Enter an asterisk (*) in the Number field for other items on the bank statement that do not have numbers.
Press the Enter key. If the number is found or if an asterisk was entered, the cursor will advance to the Amount field. If a number is entered which is not found in the list of outstanding items (lower right grid), the computer will beep and the cursor will not advance.
Enter the amount of the item from the bank statement in the Amount field and press Enter.
If a matching item was found in the list of outstanding items, the Clr box for the item will automatically be checked and the cursor will advance to the Number field with the number automatically incremented to the next number. If this is correct, press Enter and proceed with the amount for the next item. If it is not correct, type in the correct number and proceed.
If the matching item was not found for the amount entered, the computer will beep and the cursor will not advance. Item found with different amount or Item not found
If the item was a check with a number and the item was found but cleared for a different amount, press the down arrow (or click the Unresolved button) to place the item in the Unresolved grid to be handled later.
If the item did not have a number (*) and a match could not be readily located, press the down arrow (or click the Unresolved button) to place the item in the Unresolved grid to be handled later.
If the item was a check with a number and the item was not found press the down arrow (or click the Unresolved button)to place the item in the Unresolved grid and enter the Amount in the Unresolved grid to be handled later.
Continue step 3 until all checks and deductions are cleared or recorded in the Unresolved grid.
Click Dep & Add (Shift+F5) at the top right of the window and proceed through step 3 until all items are cleared or recorded in the Unresolved grid.
Resolve items in the Unresolved grid. Often, unresolved items are the result of banks combining transactions (i.e., deposits) during the day. Therefore, the client will have two or more deposits for one deposit that the bank shows.
At the top right of the window, select Chks & Ded to resolve checks and other deductions (or Dep & Add to resolve deposits and other additions).
Resolve these by clicking the checkbox in the ? columns of both Unresolved and outstanding items (lower right) grids next to likely matches. The Variance total at the bottom of the window will show if a match was found or not. This could mean that the variance is 0.00, or it could be some amount where the % total equals the credit card discount for the deposit.
When a match is found, simply press Shift + F12 (or click the Clear button) and the checked items in the Unresolved grid will be removed, the ? checked items are cleared in the outstanding items grid. Any variance amount will be recorded in a row of either the Deductions or Additions grids (upper center and right). The new Deduction or Addition item will be posted to the same account the original item was posted to.
If a match cannot be found for an item in the Unresolved grid, click the ? box for the item and press Shift + F12 (or click the Clear button) to move the item to the appropriate Deductions or Additions grid. Enter the account the item is to be posted to and any other information required for the transaction.
When all items on the bank statement are cleared correctly, the Variance for the Bank (upper left of window) will be 0.00 (zero).
If there are no addition errors on the client's bank stub, the Variance for the Client (upper left of window) should be 0.00 (zero). If this is not the case, locate the discrepancies and press Shift + F6 or click the Corr (Sh+F6) button to record the corrections.
Visual Clearing Method
Enter the ending Bank balance from the bank statement and the Client ending balance from the last stub for the period.
Click Chks & Ded (Shift+F4) at the top right of the window.
Visually compare items the check and deduction items on the bank statement to the items in the Checks>Deductions or Deposits>Additions grid at the lower right of the window. Using the mouse, click the Clr box to clear or unclear an item.
If an item is found that has cleared but for a different amount than what is in the grid, double-click anywhere on the line for that item to drill-down to the source journal (i.e., Write Up>Checks, etc.). Correct the item as necessary. When the amount has been changed, click the Save and Close icon at the top of the journal window. The Corrections list will open with the item recorded. If the client had incorrectly recorded the amount on the check stub, accept the correction (edit as desired). If the difference is due to an input error, delete the correction by clicking Cancel on the corrections window.
Record any items on the bank statement that were not recorded on the client's stubs in the appropriate Deductions or Additions grids above.
Repeat steps 3–5 until all checks and deductions have been handled.
Click Dep & Add (Shift+F5) at the upper right of the window and repeat steps 3–5 until all deposits and additions have been handled.
When all items on the bank statement are cleared correctly, the Variance for the Bank (upper left of window) will be 0.00 (zero).
If there are no addition errors on the client's bank stub, the Variance for the Client (upper left of window) should be 0.00 (zero). If this is not the case, locate the discrepancies and press Shift + F6 or click the Corr (Sh+F6) button to record the corrections.
Range of Checks Clearing Method
The range of checks clearing method is designed to clear a range of checks that have a check numbers. Check numbers that have alpha characters will not be included in the range.
Enter the letter "r" in the Number field and press Enter.
A dialog box will open. Enter the range of checks to clear. Press Enter to add another range of checks to clear. When done, click Clear or press Enter without entering a From number and then press the spacebar.
A checkmark will be placed in the Clr box for the check range(s) entered.
To Import a Bank Statement
Log onto the customer's online banking account. If client's Credit Card Statements are reconciled in the Bank Reconciliation window the Credit Card Statements may be imported using the same format and steps as for Bank Statements.
Go to the Bank Statement area and select the desired bank statement.
Look for links to Download the statement. Every bank will present this somewhat differently so you will need to look around; however, most banks offer this feature.
Select the QIF, or Quicken QIF format. Again every bank will present this somewhat differently but most banks offer this format. Following are examples from three different banks:
Example 1: Example 2: Example 3:
Download the file to the desired path.
Open the company file and select Write Up>Bank Reconciliation.
Select the desired Bank Account.
Click the Import Bank Statement button.
Browse to the path for the downloaded QIF file.
Select Try to clear non-checks to have the system to try to locate items that do not have a check number on the bank statement by amount and appropriate date. An appropriate date is where the item is dated earlier in the customer's file than the date on the bank statement.
Click OK.
All matching Checks and other items (depending upon the selection of the Option in step 10) will be cleared automatically. All non-matching items will be placed in the Unresolved grids for both Checks>Deductions and Deposits>Additions. Clear these items using the instructions in Heads-Down Clearing Method.
Bank Reconciliation Options
Include Cash Type Account
Yes—Adds all GL Accounts with a Type of Cash in the Bank Account drop-down list at the top of the window.
No—does not include GL Accounts with a Type of Cash in the Bank Account drop-down list at the top of the window.
Include Accounts Payable Type Accounts
Yes—Adds all GL Accounts with a Type of Accounts Payable in the Bank Account drop-down list at the top of the window.
No—Does not include GL Accounts Type of Accounts Payable in the Bank Account drop-down list at the top of the window.
Include Credit Cards Payable Type Accounts
Yes—Adds all GL Accounts with a Type of Credit Cards Payable in the Bank Account drop-down list at the top of the window.
No—Does not include GL Accounts Type of Credit Cards Payable in the Bank Account drop-down list at the top of the window.
Suppress Blank Account Message
Yes—Does not display Please Enter account for this Transaction dialog box when the Unresolved Clear(Shift+F12) is used to add a transaction to the Deductions or Additions grid.
No—Displays Please Enter account for this Transaction dialog box when the Unresolved Clear(Shift+F12) is used to add a transaction to the Deductions or Additions grid.
Display Number>Amount Error
Yes—A Number or Amount not found dialog box will open when a matching record is not found. This option is useful for workstations that do not have sound.
No—No dialog box will open when a matching record is not found.
Ask Before Adding Contacts
Yes—When a name is entered in the Contact field that does not match the Lookup for any contact in the Contact Manager, a dialog box is presented asking if you want to add the contact. If you click No, the name in the Contact field will be cleared.
No—When a name is entered in the Contact field that does not match the Lookup for any contact in the Contact Manager, the program creates a new contact for the name automatically, without asking.
Bank Reconciliation Options - Reports tab
Click on the Insert button to insert a Reconcilation report on the window. Click on the Preview icon in the toolbar to preview the report.
icon in the toolbar to preview the report.
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