Bank Reconciliation

Purpose

The purpose of the Bank Reconciliation module is to ensure that the organization's internal accounting records (Book Balance) match the actual records provided by the financial institution (Bank Balance). By reconciling these records, users can identify discrepancies, account for outstanding checks or deposits, track bank fees or interest, and maintain an accurate, audit-ready financial statement.

Step 1: Enabling User Access

Before performing a bank reconciliation, ensure the appropriate user account has the necessary module permissions.

1. Navigate to System Settings on the sidebar menu.
2. Click Users from the dropdown options.
3. Locate and select the specific user profile you wish to update from the user list.
4. Scroll down to the Navigation section.
5. Locate the Adjustments category and tick the checkbox for Bank Reconciliation.
6. Save your changes. The user will now see the Bank Reconciliation option on their sidebar.

Step 2: Setting Up the Chart of Accounts

Configure your bank ledger accounts to support sub-ledger bank statement records.

1. On the sidebar menu, click Configurations and select Chart of Accounts.
2. Open your specific Cash in Bank accounts one by one.
3. Locate the Special Account Type field and select Bank Account from the dropdown menu.
4. Fill out all required banking configuration fields (marked with a red asterisk ).
5. Click Save to apply the configuration.

Step 3: Accessing the Bank Reconciliation Module

1. Go to the sidebar menu, expand Adjustments, and select Bank Reconciliation.
2. A dashboard listing all linked bank accounts will appear. Click on the specific bank account you intend to reconcile (e.g., Bank of the Philippine Islands).
3. Review the Bank Reconciliation Summary section, which dynamically displays:
   • Book Balance: The current balance according to your general ledger.
   • Bank Balance: The ending balance stated by the bank.
   • Outstanding Payments / Receipts: Book entries not yet cleared by the bank.
   • Unreconciled Statement Lines: Uploaded bank records awaiting matching.

Step 4: Adding and Uploading Bank Transactions

Click the Add Bank Transactions (or Add Reconciliation) button at the top-right corner of the window. You can input your bank statement lines using one of two methods:

Method A: Manual Entry

1. Input a Bank Description to identify the statement period (e.g., "UB Bank Statement – October 1 to 31, 2025").
2. For each transaction line, encode the following from your bank statement:
   • Date: The exact transaction date.
   • Payee: The recipient or issuer of the payment.
   • Description / Doc. Ref. / Check Number: Relevant identifiers for tracking.
   • Amount: Input outflows into the Debit column and inflows into the Credit column.
3. Click Add Record to insert additional lines.
4. Once completed, click Save and Reconcile.

Method B: Batch Import

1. Click the Import button at the top-right corner and select Download Template to get the standard CSV layout.
2. Open the CSV file and populate it with your bank statement details.

   ⚠️ Important Data Rule: Both debit and credit columns are required fields. For outflows, enter 0 in the Credit column. For inflows, enter 0 in the Debit column. Do not leave them blank.

3. Save the completed CSV file.
4. Back in the system, click Choose File, select your file, and click Import.
5. Click Save and Reconcile to process the batch lines.

Step 5: Matching and Reconciling Transactions

Once transactions are saved, the system directs you to a side-by-side transaction workspace.

1. The Left Table contains your uploaded bank statement lines. The Right Table displays corresponding book transactions.
2. Click Look for a Match next to an unreconciled bank line. The system automatically scans for matches using amount, date, payee, and reference numbers.
3. Review the suggested system results:
   • If correct, click Match This to clear and reconcile the line.
   • If a match isn't automatically found, click Show Transactions or use the integrated Search Bar to find the entry manually.
4. Repeat this validation process until every item has been matched.

Step 6: Reviewing Final Summary Status

After matching your entries, verify the updated dashboard metrics:

• Ensure that Unreconciled Statement Lines drops to 0.00.
• Confirm that the Statement Balance Calculated aligns cleanly with your confirmed bank parameters to close out the reporting period successfully.