Bank statement reconciliations

Steps to perform a bank statement reconciliation

  1. Set up a bank statement definition, (compulsory).
  2. Create automatic linking rules, (optional).
  3. Perform the bank statement reconciliation.

Setting up a bank statement definition

Watch this video to see how to set up a bank statement definition or follow the steps below it.

Navigate to the correct window

  1. Navigate to Ledger / Bank Reconciliation / Bank Statement Definition.

Enter the statement's general details

  1. Enter a name for the bank statement definition in the Definition Name text box.
  2. Check that the following message box appears: The definition does not exist - do you want to create it?
  3. Click the Yes button.
  4. Select which delimiter your bank statement uses to separate columns from the Column Delimiter dropdown list.
  5. Select the date format your bank statement uses from the Date Format dropdown list.
  6. Select the delimiter your bank statement uses for dates from the Delimiter dropdown list.
  7. Select the appropriate format of the year, month and day from the Year Format, Month Format and Day Format dropdown lists.
  8. Select the number of header lines your statement uses from the Header Lines dropdown list.
  9. Select the appropriate transaction order from the Transaction Order dropdown list.
  10. Select to either use the Statement Balance or the account balance from the Opening Balance dropdown list.
The following might assist you with some of the steps:

Creating the definition name:
A good idea is to name the definitions in accordance with the banks that the statement will come from, such as ABSA, or FNB.

Selecting the delimiter your statement uses:
You can choose between a comma, tab, semicolon, asterisk and other. If you choose the Other option, you have to specify what the delimiter is in the text box next to the dropdown list. If you do not know what delimiter your statement uses, open the file with Notepad. There you will clearly see what separates the content, most of the time it will be commas.

Header lines:
Header lines are lines that do not contain any transaction information.

Statement balance and account balance:
If you use the Statement Balance option, Fincon Accounting will use the statement’s opening balance to check whether your reconciliation balances (this is the recommended option). If you use the Account Balance option, Fincon Accounting will recalculate the closing balances as per the imported transactions, and won’t check if the reconciliation balances.

Enter the statement's column details

  1. Click on the Column tab.
  2. Select the column the date of the transaction is in from the Date dropdown list.
  3. Select the column the 1st reference is in from the Reference 1 dropdown list.
  4. Select the column the 2nd reference is in from the Reference 2 dropdown list.
  5. Select the column the amount of the transaction is in from the Amount dropdown list.
  6. Select the column the debit amount is in from the Debit Amount dropdown list.
  7. Select the column the credit amount is in from the Credit Amount dropdown list.
  8. Select the column the balance is in from the Balance dropdown list.
Why are there two reference options?

This is for situations where a statement has two reference columns. Both can then be selected to be combined in the import.

Test the import

  1. Click the Open File button.
  2. Select the appropriate statement and click the Open button.
  3. If all is set up correctly, the grid will show all the correct information in the correct columns.

Save the definition

  1. Click the Accept button.

Creating automatic linking rules

Watch this video to see how to create automatic linking rules or follow the steps below it.

Navigate to the correct window

  1. Navigate to Ledger / Bank Reconciliation / Bank Statement Definition.
  2. Call up the appropriate bank statement definition in the Definition Name text box.
  3. Click on the Key Words tab.

Enter the keyword/phrase details

  1. Select any line on the grid and press the Insert button on your keyboard.
  2. Enter the keyword or phrase that the automatic linking rule should look for, in the Keyword/Phrase text box.
  3. Select the appropriate transaction type from the Transaction Type dropdown list.
  4. Enter or select the appropriate account number in the Account Number text box.
  5. Select the appropriate predefined stop order from the Predefined Stop Order dropdown list, if any.
  6. Select the appropriate tax type and code from the Tax Type and Code dropdown lists if applicable.
  7. Enter the transaction reference in the Reference text box, or leave it blank to use the statement reference.
  8. Repeat for all keywords/phrases.
You can edit or delete a rule by following the same steps, and instead of pressing Insert, you can press Enter to edit a rule, and Delete to delete a rule.

Save the automatic linking rule

  1. Click the Accept button.

Performing a bank statement reconciliation

Watch this video to see how to perform a bank statement reconciliation or follow the steps below it.

Before getting started, it is imperative to know that you can only print the bank reconciliation whilst you are still in the window. Once you exit, you will not be able to print the reconciliation, we recommend that you print it before you exit. Fincon Accounting will ask you whether you want to exit before printing.

Navigate to the correct window

  1. Navigate to Ledger / Bank Reconciliation / Bank Statement Reconciliation.

Enter the reconciliation details

  1. Enter or select the appropriate bank ledger account in the Bank Account text box.
  2. Enter a reference for the reconciliation in the Reference text box.
  3. Select the period to which the reconciliation applies in the Recon Period text box.
  4. Enter the reconciliation date in the Recon Date text box.
  5. Select the appropriate bank statement definition from the Statement Definition dropdown list.

Upload the bank statement CSV file

  1. Click the Open File button.
  2. Select your bank statement CSV file and click the Open button.

Reconcile the bank statement entries

  1. Go through each line and use the Enter button (or the right mouse button), to bring up a list of the entry types that the line pertains to.
  2. Select the entry type by clicking on it.
  3. After all the lines have been completed, click the Accept button to process the reconciliation.
  4. The following message box will appear: The complete bank reconciliation has not been printed. Are you sure you want to Accept it without printing first? Click the No button if you would like to print it first and the Yes button if you would like to complete the reconciliation without printing. 

You can perform a bank statement reconciliation for the following entry types:

Receipts

  1. Press Enter on your keyboard or double-click the receipt entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Interest received 

  1. Enter or select the affected account in the Account Number text box.
  2. Enter a different reference in the Reference text box if you so wish.
  3. Click the Accept button to save the changes.

Reverse bank transfer 

  1. Press Enter on your keyboard or double-click the bank transfer entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Reverse cheque entry 

  1. Press Enter on your keyboard or double-click the cheque entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Deposit/Journal 

  1. Press Enter on your keyboard or double-click the bank deposit or journal entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Transfer

  1. Enter or select the affected account in the Account Number text box. 
  2. Select the tax type and code from the Tax Type and Code dropdown boxes if applicable.
  3. Change the tax amount in the Tax Amount text box if applicable.
  4. Change the reference in the Reference text box if you so wish.
  5. Click the Accept button to save the changes.

Bank transfer 

  1. Press Enter on your keyboard or double-click the bank transfer entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Cheque entry 

  1. Press Enter on your keyboard or double-click the cheque entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Stop order

  1. Enter or select the affected account in the Account Number text box. 
  2. Select the tax type and code from the Tax Type and Code dropdown boxes if applicable.
  3. Change the tax amount in the Tax Amount text box is applicable.
  4. Change the reference in the Reference text box if you so wish.
  5. Click the Accept button to save the changes.

Predefined stop order 

  1. Change the reference in the Reference text box if you so wish.
  2. Press Enter on your keyboard or double-click the stop order line that pertains to the bank statement line to select it.
  3. Click the Accept button to save the selection.

Bank charges 

  1. Enter or select the affected account in the Account Number text box. 
  2. Select the tax type and code from the Tax Type and Code dropdown boxes if applicable.
  3. Change the tax amount in the Tax Amount text box is applicable.
  4. Change the reference in the Reference text box if you so wish.
  5. Click the Accept button to save the changes.

Interest paid 

  1. Enter or select the affected account in the Account Number text box. 
  2. Select the tax type and code from the Tax Type and Code dropdown boxes if applicable.
  3. Change the tax amount in the Tax Amount text box is applicable.
  4. Change the reference in the Reference text box if you so wish.
  5. Click the Accept button to save the changes.

Reverse receipt 

  1. Press Enter on your keyboard or double-click the receipt entry line that pertains to the bank statement line.
  2. Click the Accept button to save the selection.

Can a bank reconciliation be reprinted?

A bank reconciliation can not be reprinted, so if you want to print the bank reconciliation, it is important to print it before you complete the process.

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