Cash Clearing Reconciliation Confusion

I find that reconciling this account is very confusing at each month end.

What is the logic behind the reconciliation?

In a perfect world the account is supposed to clear out with a zero balance, but I always seem to have a balance. What do I need to look for to help me reconcile these unbalanced items? What transactions can cause these disceprancies? What ahve I forgotten to account for?

 

Please help. Thanks.Liz

 

 

 

  •  HI Liz,

    Hope the below information helps:

     Invalid amount in DISCREPANCY:  If you manually calculate the difference between the END STATEMENT - OPENING BALANCE and it does not equal the resolved amount but all items are selected - RESET.

      - the above could be caused by making adjustments to transactions in prior months that have already been reconciled.

    IF THEY DO EQUAL and there is still a discrepancy, the value is valid and the issue is with the data . If this is the case, then you can run account transaction reports and manually compare them to the bank statements.

     

    Not all amounts will be 0 - you may still have outstanding items.  But if you are showing an unresolved, the below is for that:

     

    Invalid amount in UNRESOLVED:  Outstanding + end balance = GL report end balance (for that time period). If BALANCED then RESET the bank rec as it is corrupt. If amounts are not the same, then there could be incorrect entries, such as:

        *Wrong statement end balance

        *transaction cleared or not cleared in previous reconcile

        * Transactions posted to wrong month