After entering the amounts from the statement, proceed to the Reconcile Checks menu option. The first part of this screen, cleared checks, shows the number and total of the checks you entered from the bank statement, and the number and total of the checks that are marked cleared on the reconciliation file. These numbers should match. If they do, they will be noted *** in balance***. If the two amounts do not match, the out-of-balance amount will be displayed.

Cleared Checks

This section is comparing what you entered from your statement and the Check History.

•Per Bank Statement – pulling from the Start Cycle screen.

•Bank Drafts per General Ledger – entries coded to the “draft” journal per your Bank Account Maintenance setup.

•Per Bank Reconciliation File – items from your Check History.

If “Per Bank Statement” equals the “Bank Drafts per GL” plus “Bank Reconciliation File”, then you will get the message *** in balance***.

If these do not balance, then we will want to use the Cleared List button at the bottom of the screen. This will produce a report that will have 3 possible sections. NOTE: each of these sections will ALWAYS start on a new page. So, if you run your report and you don’t see what you’re looking for on the first page, look to see if you have more pages.

•Section 1 will be the check numbers that were cleared through our Cleared Checks section (excluding E-Checks).

•Section 2 is Bank Drafts in G/L that were coded to your draft journal (Journal 82 in our example).

•Section 3 will be your E-checks (drafts through A/P). Check all these items against your statement.

NOTE: Another issue could be not voiding an EFTPS Payment when voiding a Payroll Check. Forgetting to void an EFTPS payment when a payroll check is voided (if the EFTPS payment is setup to be automatically created) is another common reason that bank reconciliations can be out of balance.

Written Checks

This section shows how many checks the General Ledger shows to have been written, and how many the Bank Reconciliation file has recorded. Again, these should match. If they do not, click on the Written List report. This will have one section that will show what is in the General Ledger but not in Check History. The other section will show what is in Check History but not in General Ledger. At this point, the best way to reconcile this is to look at the Ledger Listing and the Check Register. What is the difference? Some things to check…

Items are in General Ledger, but not in Check History

•Was a check deleted from the check history?

•Was a Journal Entry made in the General Ledger that uses a journal that requires a check history (70 or 71)? If so, change the journal to something else.

•Was a Journal Entry made to manually void or correct an AP check? If so, this correction needs to be done through the AP module so the check will be affected also.

Items are in Check History but not in the General Ledger

•Are there any unposted entries in General Ledger/#10 Entries? Sometimes if there are errors when posting in another module, the entries will default to this location.

•Are there any unposted entries in Accounts Payable/#20 Handwritten Checks? When an entry is created in this screen, a placeholder is kept in Check History. However, if the entry is not posted, there will no corresponding entry in General Ledger.

•Is the Payroll or Revenue cycle set to go into cash as a lump sum? (You will learn about this later in training). If so, you will need to go back to the original cycle reports to tie the individual checks to the lump sum.

This is not a comprehensive list, rather, a good place to start.