Reconciliation

This Reconciliation is designed to allow you to reconcile a checking Type account. Accounts which are Cash Type, Accounts Payable Type, or Credit Cards Payable Type may also be reconciled here depending on the options selected. See the Reconciliation Options at the end of this article.

• 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 General Ledger Accounts are available in the drop-down list. The window will open with the bank account that was last used in Activities>Quick Check selected.
• The Select grid type option controls what type of items will be displayed in the clearing grid on the right side of the window. When Checks & Ded is selected, only checks and other deductions appear in the clearing grid. When Dep & Add is selected, only deposits and other additions appear in the clearing grid.
• Total displays to total of all checks and deductions or deposits and additions in the grid on the right.
• Cleared displays the total of all checks and deductions or deposits and additions which have been selected as cleared this period.
• Outstanding displays the total of all checks and deductions or deposits and additions which have not been selected as cleared this period.
• The Number and Amount fields are used for the Heads-Down Clearing Method described below. 
• Bank Balance field.
• The Bank Variance is the difference between the bank statement balance and the reconciled balance in PBM.  When this amount is zero your account is in balance.
  
  

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 described below.

1. Enter the ending bank balance from the bank statement and the client's ending balance from the last stub for the period.
2. Click Checks & Ded in the Select grid type section.
3. 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. Press the Esc key and edit or enter the check.
4. Repeat step 3 until all checks and deductions are cleared.
5. Click Dep & Add in the Select grid type section and proceed through step 3 until all items are cleared.
6. When all items on the bank statement are cleared correctly, the Bank Variance will be 0.00 (zero).

Visual Clearing Method

1. Enter the ending Bank balance from the bank statement.
2. Click Checks & Ded in the Select grid type section.
3. 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.
4. 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., Activities>Quick Check, 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.
5. Continue step 3 until all checks and deductions are cleared.
6. Click Dep & Add in the Select grid type section and proceed through step 3 until all items are cleared.
7. When all items on the bank statement are cleared correctly, the Bank Variance will be 0.00 (zero).

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.

• 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.