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How to set up the bank reconciliation for the first time or after a reset

Created on  | Last modified on 

Summary

The steps below detail how to set up your bank reconciliation for the first time or after you have performed a reset of your bank reconciliation.

Resolution

Before you Begin:
  • For the initial setup, you can only reconcile the account in the current fiscal year.
  • If you must reconcile outside of the current fiscal year:
    • Do a manual bank reconciliation until the end of the previous fiscal year
    • Continue with the bank reconciliation setup

Step 1: Enabling Bank reconciliation

  1. In the Home window:
    • In Enhanced View: Select Company, then double-click Chart of Accounts.
    • In Classic View: double-click on Chart of Accounts.
  2. Double-click on your bank account.
  3. Select the Reconciliation & Deposits tab.
  4. Place a mark in Save Transactions for Account Reconciliation.
  5. Click on the Set Up button at the bottom of the page.
  6. Setup revenue accounts for the following:
    • Interest income
    • Exchange gain
    • Error-Gain
    • Adjustments
  7. You can also set up expense accounts for:
    • bank charges
    • NSF Fee
    • Interest Expense.
  8. You can rename the Interest Expenses to agree with the bank statement.
  9. Click OK.

Step 2: To set up Bank Reconciliation

  1. In the Home window:
    1. In Enhanced View, go to the Banking tab and click Reconcile Accounts.
    2. In Classic View, double-click on Reconciliation & Deposits.
  2. Choose the bank account you are reconciling.
  3. Enter the following from the report provided by your financial institution:
    • Statement Start Date
    • Statement End Date
    • Reconciliation Date
    • Statement Opening Balance
    • Statement End Balances
  4. Select Add Prior Outstanding button
  5. If you receive a prompt to save changes select YES when prompted to save changes.
  6. Click OK
  7. Set the Show Resolved Trans. On or After: date to the oldest outstanding transaction
  8. From the list of Resolved Transactions:
    • Select outstanding transactions dated before the statement beginning date.
    • Click Add to move to the Outstanding Transactions list.
  9. Select Insert Outstanding to add transactions that don’t appear in the list.
  10. When finished, click OK.
  11. Check if the discrepancy is zero before clearing transactions.
    • If not zero:
      • You may have missed adding outstanding transactions.
      • Added a wrong outstanding transaction on ‘Add prior outstanding window’.
      • The opening balance amount on bank reconciliation is incorrect.

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