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Bank Reconciliations and Best Practices
Preliminary Tasks and Reports
Creating a Bank ID
To start a Bank Reconciliation within MCSJ, a Bank ID must be created to identify a GL cash line to be reconciled. To create a Bank ID, go to Finance>Revenue>Bank Maintenance. Bank ID: Enter a Bank ID that you will recognize going forward in picklists for where applicable, such as Bank Reconciliations, Cash Receipts Batches, and Payment Codes. Special Routine exists to change an existing Bank ID if needed. Description: (^) Description of the bank account that the GL cash line is tied to. Account Number: The actual bank account number with your Financial Institution. *NOTE: If you use the Billing/Collections module and have an applicable validator, the Description and Account Number fields can be used for check validations *
Bank Recon ID: A Bank Recon ID can be used for reconciliation purposes if you have multiple GL lines in the same (or different) fund that represent one physical bank account at a Financial Institution.
Check Register for Outstanding Checks
Before starting a Bank Reconciliation within MCSJ, you can run a Check Register for Outstanding Checks, as of the date you are going to be reconciling for. To pull up a Check Register, go to Finance>A/P>Check Processing>Check Register.
Bank Reconciliation Inquiry for Outstanding Transactions
A Bank Reconciliation Inquiry can be ran for all Outstanding Transactions as of the date you are about to begin a reconciliation for. To pull up a Bank Rec Inquiry, go to Finance>G/L>Bank Reconciliation>Bank Reconciliation Inquiry.
Processing Interest and Bank Fees (continued)
Bank Fees: Typically, Bank Fees are posted through an Expenditure (Budget) Batch which can be found by going to Finance>Expenditure(Budget)>Expenditure(Budget) Batch.
Starting/Completing your Bank Reconciliation
Bank Reconciliation
To start up your Bank Reconciliation, go to Finance>G/L>Bank Reconciliation>Bank Reconciliation.
The Display section of the Bank Reconciliation can be used to toggle the view between all, reconciled (selected), and unreconciled (de-selected) transactions. Show Disbursements/Cash Receipts/Other Transactions – Use these boxes to be able to toggle the types of transactions displayed on the screen.
Bank Reconciliation (continued)
Toolbar Buttons: Update: This assigns a reconciliation date, which defaults to the Statement Ending Date used on the main screen, to every reconciled (selected) transaction, and updates the entire reconciliation. If any unreconciled difference exists, MCSJ will ask if you are sure you want to reconcile with a difference. Once the update is complete, the Bank Reconciliation Report will print to screen for you to keep for your records. It is recommended to hit the “Print” button first to generate the Verification Listing beforehand, as the Update should be the last step in your process. Refresh: This will refresh the current Bank Reconciliation to include any transactions that may have been posted to the GL Line since the reconciliation was started. Save: This will save your work in your current reconciliation. It is recommended to save frequently if working on a large reconciliation. The Save button also allows you to save the current progress of a reconciliation and pick up at a later time. Drill: Using the Drill button will drill down into the G/L Posting Reference of whatever transaction line is selected. The same can be achieved by simply double-clicking on the line as well. Print: This will print the Bank Reconciliation Verification Listing. It is recommended to print this prior to updating the reconciliation. Reconciling Transactions: To reconcile a transaction, the box to the far left of the transaction line must be checked. If a transaction is to remain outstanding and did not clear on your bank statement, leave it unchecked and it will remain outstanding for your next month’s reconciliation. Helpful Hints: You can reconcile a range of transactions by selecting the first transaction, holding the ‘Shift” key on your keyboard, and selecting the last transaction. This will select all lines between the range of the two transactions and will
Book Balance: The Balance of the G/L Account in MCSJ as of the Statement Ending Date. Unreconciled Difference: Adjusted Bank Balance – Book Balance. Unreconciling a Transaction: If a transaction was reconciled by mistake and the reconciliation was already updated, you can re-enter the Bank Reconciliation that was updated using the same Statement Ending Date and Statement Ending Balance. Once the reconciliation is generated, you can uncheck the transaction that was previously reconciled, save, verify and re-update the reconciliation. Other helpful routines and Information
A/P Check Reconciliation
Within MCSJ, the Check Reconciliation and Bank Reconciliation talk to each other. If you go through an A/P Check Reconciliation and update it prior to starting your Bank Reconciliation, all reconciled checks will already pull into your Bank Reconciliation with a check mark selected. This routine can be found by going to Finance>A/P>Check Processing>Check Reconciliation.
Unreconciling a Transaction
Unreconciling a Transaction using Bank Reconciliation: If a transaction was reconciled by mistake and the reconciliation was already updated, you can re-enter the Bank Reconciliation that was updated using the same Statement Ending Date and Statement Ending Balance. Once the reconciliation is generated, you can uncheck the transaction that was previously reconciled, save, verify and re-update the reconciliation. Unreconciling a Transaction using A/P Check Reconciliation: If a check was reconciled by mistake, you have the option to unreconcile it using either the Bank Reconciliation or the A/P Check Reconciliation. To unreconcile a check using the Check Reconciliation, you would select the Checking Account in which the check was drawn on, and the reconciliation date used originally. Instead of using the “Auto Create Batch”, you would select ‘Batch Entry’ instead and hit ‘Next’. You will then be able to ‘Add’ in the check number that was mistakenly reconciled, and it will pull into the Batch Entry with a check mark showing. To unreconcile this transaction, you would simply uncheck the box, save the batch, verify the batch and update.
