Bank reconciliation

Sage 50 Accounting - Canadian Edition

Sage 50 Accounting - Canadian Edition
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Bank reconciliation

  • My bank recs on Simply are months behind and causing me great frustration. Instructions on this forum have been very helpful. My latest problem is that I have started all over (again) and there are double and sometimes triple entries on the screen for every item. I've tried changing the date, closing and reopening all windows, even closing down Simply, but still the multiple entries are there. It looks like a programming issue but in the meantime I can't carry on with the recs. I finally decided to restore from backup and that got rid of it but it means redoing today's work (haven't done much fortunately). Any advice?

  •  You may need to reset the bank reconciliation if:

    • The bank reconciliation table contains some bad data and Simply Accounting is reading the incorrect numbers
    • You want to change the Statement Start Date and/or the Statement Opening Balance, but Simply is not allowing you.

    Note:  Please make a BACKUP of your data before proceeding, and do not overwrite any of the other backups. The Account Reconciliation feature involves detailed procedures listed below that must be followed step-by-step:

    Part A - Clearing old reconciliation information:

    1. Print the Account Reconciliation Detail Report for the last month that was successfully reconciled:

      a.      Go to Reports, Banking, and click on Account Reconciliation Report
      b.      Use Report type: Detail
      c.      Select the proper bank account
      d.      Start date and Finish date: The day before your current statement start date. For example, if you were trying to reconcile the month of July 2006, you should use June 30, 2006 as the start and finish dates
      e.     
      Sorted by: Statement End date
    2. Reset the bank reconciliation:

      a.      From the home window, double-click on Chart of Accounts. (If it's in "Enhanced View", "Chart of Accounts" icon is under "Company" tab from left pane.)
      b.      Double-click on your bank account.
      c.      Go to the Reconciliation & Deposits tab.
      d.      Unmark the box beside
      Save Transactions for Account Reconciliation
      e.     
      Close the ledger to save the changes.
      f.       Click on OK to remove all reconciliation information.

    Part B – Setting up the Bank Reconciliation:

    1. Prepare the bank account for the bank reconciliation:

      a.      In the home window, double-click on Accounts, and double-click on your bank account
      b.      Go to the Reconciliation & Deposits tab
      c.      Put a checkmark in the box beside Save Transactions for Account Reconciliation.
      d.      The Set Up button will appear on the bottom of the page.  You can click on it and setup revenue accounts for Interest income, Exchange gain, Error-Gain, and Adjustments.  You can also set up expense accounts for bank charges, NSF Fee, and Interest Expense.
      e.      Close the bank account with the X in the corner.

      f.        Close the accounts window with the X in the corner
    2. Start the account reconciliation:

      a.      From the home window, double-click on the Account Reconciliation journal and choose the bank account for which you want to set up reconciliation.
      b.     
      Enter the Statement Start DateStatement End Date and Reconciliation Date; and the Statement Opening Balance and Statement End Balances from the report provided from your financial institution.
    3. In addition, you will have to list those transactions that were outstanding prior to your statement start date:

      a.      Click the Add Prior Outstanding button
      b.      The system will prompt you to answer Do you want to save changes?  Click Yes to this.
      c.      If you have no outstanding transactions prior to the Statement Start Date, click the OK button.
      d.      Select those transactions from the list of Resolved Transactions that are dated before the statement beginning date
      e.     
      If a transaction that was outstanding as of the Statement Start Date doesn’t appear in the list of Resolved Transactions, you can click on Insert Outstanding, and insert it manually.

      Tip:  Often the easiest way to select outstanding transactions is to click on the Add All button, and then remove any transactions that have cleared your account by clicking on them and then clicking Remove.

      f.        When you have finished selecting outstanding transactions, click OK.

    You are now ready to start reconciling your bank statement. Make sure your unresolved and discrepancy amounts are zero before you are ready to post.

  •  I have followed these clear and helpful instructions each time I've started over. My problem is the double and triple entries of each item - pretty sure it's a programming thing.

  • I have another problem. An amount of $8.77 appears on the Simply rec window, I check it off because it has cleared the bank. Yet, an unresolved amount of $8.77 shows up. The payable ledger is correct.

  •  Hi, I can commiserate with your frustrations, until I realized what was causing them these drove me crazy also.  The double and triple entries are usually caused by correcting a posting.  Make sure you have "show corrections" checked, click on the top icon that says to clear all items, make sure your opening and closing balances are accurate and so are your dates, then just uncheck all outstanding items.  This is the easiest and fastest method of getting through the maze SA creates in order to preserve an accurate audit trail.   BREATHE!! It's ok, this too shall pass.  

    I hope this will work for you, if not, come back to the forum and we'll try again.  In the meantime, don't worry it has happened to a lot of us. 

  • Almost magic.
    First part of my thinking:
    I did as you said by checking all and then just unchecking what hasn't cleared. Unfortunately, I'm still out the $8.77. However, if I uncheck a reversing entry of $8.77 for which there is "no data to report," everything balances.

    Second part of my thinking:
    I think unchecking something that doesn't exist would be fine, right?
    If so, it IS magic.
    Karen

  •  Hi, what triggered the $8.77?  If it is something that shouldn't be there, just go in and reverse it or delete it and then you should reconcile perfectly.   :)

  •  The $8.77 is an actual bill. I incorrectly credited the owner's pocket instead of the bank first time around. So the reversing entry is to credit the bank. The $8.77 is entered in Simply as a payment coming from the bank and it has cleared the bank. The problem seems to be extra entries in the Simply reconciliation window.

    In the General Journal, there are just 2 entries:
    Debit to Owner  Credit to A/P
    then
    Debit to A/P    Credit to Bank

    Can I uncheck the reversed entry that has no data to report? If I uncheck it, my resolved and discrepancy amounts are zero but the resolved and outstanding amounts change. If I check it, my unresolved goes to -$8.77

    It's a puzzle to me.

  •  Ok, I'm going to try and follow the chain of events, correct me if I'm wrong please.

    #1 - Cr - Owner 8.77     Dr A/P [paying the vendor's invoice]

    #2 - Dr - Owner 8.77    Cr  A/Payable reversing the payment

    #3 - Dr - A/P  8.77     Cr    Bank [pay invoice correctly]

    So when you check the box to show all corrections what entries are you seeing in your bank rec?  Did you try to delete the payment from the owner or did you just do a journal entry to move it to the bank?   Did all of these transactions take place in the same month? Or did the 8.77 clear the bank last month and you're trying to fix it now? Sorry, I am a little confused. Can you show me exactly what you did in the sequence complete with dates.  Or, you can just uncheck it, but then you will have an outstanding [unresolved] amount forever of 8.77.

  •  All the transactions took place in the same month.

    When showing all corrections:
    Source, Date, Comment:Reversing J#. Correction J#.  8.77 in deposits
    Source, Date, Comment:Nameless Diner   8.77 withdrawal

    The series of events as I recall it:
    I entered the invoice of $8.77 on Jan 7 to "Pay Later."  Debit to "Due to Principals" credit to A/P
    Posted it

    It was a while ago but I think I posted the payment By: Cash   From: Due to Principals

    When I realized the source was the bank, I went into the payments journal (via GJ), CTL A to adjust, and changed it from

    By: Cash     From: Due to Principles

    to
    By: Cash    From: Bank.

    If I end up with an unresolved amount, Simply will post it to some income account and the accountant can take it from there. But, I'd like to know where I went wrong.

    Thanks.

  •  Just wanted to say a proper thank you for your help. It has saved me more hours of frustration.

    Karen

  •  Hi there,

    I am also having a problem in bank reconciliation. I have unsolved amount of -$40,722.83. As i think i made lots of changes in previous month bank statement after posting the bank rec. But when i check in the previous posted entries from the bank rec. window, it still off by about $5000. I don't know what should i do. should i create a new bank rec and start for nex month bank rec. or is there any other way to resolve it.

    Also how can i find out if the previous month posted was accurate.

    Any help would be appreciated, thanks

  • hi, I have the same issue with my bank reconciliation.  there's an item already reversed but still included on the outstanding cheques. what is the way to correct this. please reply.

  • Hi Lele,

    You can reset the bank rec and start like your first bank rec so you can add prior outstanding item again. 

    Remeber to make a backup before you reset the bank rec.

    You can follow the link below to get the steps to reset your bank rec:

    How do I reset the bank reconciliation?

    Hope this helps