A/P Reconcile Bank Statement Using Multiple Checking Accounts

At the end of every month follow these procedures to balance the system checkbook against the bank statement. Please see the document “Check Account Master” for term explanations and how transactions are automatically entered. The document “Check Account - Transition to Computer Using Multiple Checking Accounts” should be followed before using this document. Another helpful document is “Checkbook Out of Balance”.

Multiple checking account scenario:

Checking account #1: All of the checks are paid out of this checking account. The checks that come in the mail are deposited into this checking account.

Checking account #2: The checks and cash that come in over the counter are deposited into this checking account.

Checking account #3: The credit cards are automatically deposited into this account.

Everywhere in the system the division is a warehouse, location or an FM. For this scenario, in Task #20 Check Account ONLY, the division is the checking account #.

Print a check file FOR EACH CHECKING ACCOUNT separately from the first day of the month until the last day of the month being reconciled.
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Print Selected Check Records (Sub-task 4)
      - The first screen that appears is the printer information screen. Select a printer. The system then prompts:
        
        Please enter - starting TRX #: - ending TRX #: Press ENTER for All
        
        starting date: Use 01/01/70 as the starting date, for example, to be sure everything is printed on the report.
        
        ending date: Type in the last day of the month just balanced on the manual checking account system.
        
        Division #:01
      - Then print it again for Division 02, then again for division 03.
On the bank statements circle, in red pen, any service charges, NSF checks charged back to the account, deposit ticket charges--anything that would not have been vouchered in A/P. Also anything that has not already been manually entered.
Enter new check records
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Enter New Check Record (Sub-task 1)
      - Enter the items that are circled in red pen on the bank statements using the appropriate code and division #.  Enter in all of them for division 01, then division 02 & then division 03.
        
        Trx #: Use the appropriate code. (C/C Charge, Misc. Charge,  Bad Ck/CC NSF,  Coll/Ck/CC NSF, Lost ck, Electronic Funds Transfer.)
        
        Date: Type in the date that the bank uses.
        
        Appl Area: This is a 3-character notation. It is user-defined, alphanumeric field.
        
        Written to:
        
        This is the vendor # for A/P checks.
        
        This is the employee # for P/R checks.
        
        Clearance date: Type in the last day of the month that is being balanced.
        
        Trx amount: Type in the amount of the transaction, no decimals.
        
        Batch #: Press the ENTER key for the transaction….nothing needs to be entered. This field is filled in automatically during Voucher Entry & Editing or Voucher payment preparation.
        
        Division #: Enter in the Division number.  Remember: in this scenario the division # is the checking account #.
Take each checking account report and Check off the deposits that are also on the bank statement. Make sure that ALL the deposits on the bank statement are checked off. Make sure they are for the same amount.
Clear the deposits.
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Change Existing Check Record (Sub-task 2)
      - The system prompts:
        
        "Are you putting in clearance dates? (Y/N):" defaults to N for NO. Type in Y for YES.
        
        “Please enter division #:” Type in the division #/checking account # that you are reconciling.
        
        "Please enter clearance date:" Type in the last day of the month being balanced.
      - At the bottom of the screen, the following message appears:
        
        “To clear deposits (TRX=0), do not enter a deposit date, just press ENTER. The system will then scroll the deposits for you to match with your bank receipts. The same for EFT's (TRX=8).”
        
        “For checks, enter the check number.”
        
        “TRX's 6 & 7 amounts must be reset after reconciling.”
        
        “To clear checks within a selectable range of dates/check #'s, press TAB.”
        
        When the cursor is at "Any change?______" Press the ENTER key, and the cursor will then go to TRX #.
        
        Press ENTER at TRX #, and a zero will appear for deposit. The cursor will go to TRX date.
        
        Press ENTER at TRX date, and the oldest deposit will be brought up for that division # /checking account #.
      - The system will then prompt:
        
        "Clearance date xx/xx/xx" (The clearance date entered before will appear.)
        
        "Clearing deposit" message also appears.
      - The systems then prompts:
        
        "Clear this transaction? (Y/N):” The default is Y for YES, press the ENTER key.
        
        Y for “Yes, clear this transaction”. (The record WILL be cleared). If you do not want to clear this deposit, then type N for “No, do not clear this transaction” (The record WILL NOT be cleared).
      - After that deposit is dealt with, the cursor will go back up to TRX #. If the ENTER key is pressed, then the next deposit will be brought up automatically. You can scroll through all of the deposits, each time saying Y or N to clear the transaction.
Clear Cancelled Checks:
Check off the checks on the computer report that are also on the bank statement. Make sure that ALL the checks on the bank statement are checked off. Make sure they are for the same amount. Now put a clearance date on these checks.
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Change Existing Check Record (Sub-task 2)
      - If still in sub-task 2 you will not be asked “Are you putting in clearance dates?”. If you went out of sub-task 2 and are prompted with the question again, answer Y.
      - The system prompts:
        
        "Are you putting in clearance dates? (Y/N):" defaults to N for NO. Type in Y for YES.
        
        “Please enter division #:” Type in the division #/checking account # that you are reconciling.
        
        "Please enter clearance date:" Type in the last day of the month being balanced.
      - At the bottom of the screen, the following message appears:
        
        “To clear deposits (TRX=0), do not enter a deposit date, just press ENTER.  The system will then scroll the deposits for you to match with your bank receipts.  The same for EFT's (TRX=8).”
        
        “For checks, enter the check number.”
        
        “TRX's 6 & 7 amounts must be reset after reconciling.”
        
        “To clear checks within a selectable range of dates/check #'s, press TAB.”
        
        After typing in the clearance date, when the cursor is at “Any change?”,  press the TAB key.  The system will prompt –
        
        “Please enter range type desired:    D=date range,      N=check number range”
        
        If D=date range is selected the system will prompt:
        
        “Please enter –      starting date:    -     ending date:”
        
        If ALL of the checks from 12/01/xx through 12/15/xx are to be clearing, enter the dates.  The system will clear the checks and then exit Task #20 - Check Account.
        
        If N=check number range is selected the system will prompt:
        
        “Please enter – starting check number:   -    ending check number:”
        
        It will clear ALL of the checks in the range provided regardless of the check date.  The system will clear the checks and then exit Task #20 - Check Account.
      - Checks do not have to be put into numerical order.
      - The system prompts: TRX #: Type in the check #.
        
        The check will appear on the screen.
        
        DO NOT scroll through the checks
        
        Type in each check #.
Print check records
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Print Selected Check Record (Sub-task 4)
      - Choose a printer (or PRE to preview on the screen), then answer system prompts as follows:
        
        Please enter - starting TRX #-ending TRX#: Press ENTER for ALL.
        
        Starting date: Type in the first day of the month that is being balanced.
        
        Ending date: Type in the last day of the month that is being balanced
        
        Division #: Type in the division #/checking account #, being balancing.
        
        With the above scenario you will have 3 different computer reports.
Read the report:
- A. The "NEW BANK BALANCE" amount on the report MUST equal the ending bank statement balance. . If it does not equal the bank statement ending balance, STOP, do not proceed further. Something was cleared incorrectly, or not cleared at all. See document “Checkbook Out of Balance”.
- B. The "OUT OF BALANCE" amount MUST be zero. If it does not equal zero STOP, do not proceed further. Refer to the document titled: “Checkbook Out of Balance” in the AP section.
- BOTH OF THESE CONDITIONS (A & B) MUST BE MET BEFORE CONTINUING!
- Take the “New Bank Balance” and ADD in the “Uncleared Deposits”, SUBTRACT the “Uncleared Checks”. This figure should match the "CHECKBOOK BALANCE" on the report. Note: The “CHECKBOOK BALANCE” will be the newtrx type #6 in step10 below.
- Save this report. Two reports may be printed. One may be kept with the cancelled checks, the other put in a permanent binder. They should be labeled boldly with red pen , for example: “September 20xx Bank Statement Balance – Comerica #1”.
Erase records:
- NOTE: The checking account MUST be balanced with the bank statement before ANY records are erased! Also the "OUT OF BALANCE” MUST be zero.
  - Accounts Payable (Module 3)
    - Check Account (Task 20)
      - Erase Selected Check Records (Sub-task 5)
        
        Answer system prompts as follows:
        
        “Are you sure you want to erase old records?” (YES/NO): YES
        
        Choose a printer, then continue with system prompts:
        
        “Please enter - purge cutoff date: Enter the last day of the month just balanced.”
        
        “Do you want to purge uncleared records?” Answer N for NO. The only records to be purged are the ones that have just cleared.”
        
        “Please enter division #” Type in the division #/Checking account # just balanced.
        
        A purge report will be printed. This report may be saved along with the checking account reports above.
Change the trx type #6 Checkbook and #7 Bank Balance in the computer. NOTE: NEVER change either one of these unless you have balanced. This will be done for each Division #/checking account #. In the scenario above where you have 3 different checking accounts, you will have 3 type 6’s and 3 type 7’s.
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Change Existing Check Records (Sub-task 2)
      - Answer system prompts as follows:
        
        "Are you putting in clearance dates? (Y/N):" Defaults to N for NO.
      - The cursor will be at TRX #. Enter 6 (Your checkbook balance).
      - The cursor will be at TRX date. Press the ENTER key. The checkbook balance from the previous month should appear on the screen.
      - Change field #2 (TRX date) to the first day of the new month.
      - Change field #6 (Amount) to the amount of the new checkbook balance. Look for the “CHECKBOOK BAL:” figure on the report printed in Step 7. The report should have been read and balanced in Step 8.
        
        Note: Each type 6 should match the General Ledger account balance for its matching account.
      - When the cursor is at TRX # again, enter 7 (Bank's checkbook balance).
      - The cursor should go to TRX date. Press the ENTER key. The bank balance from the previous month should appear on the screen.
      - Change field #2 (TRX date) to the first day of the new month.
      - Change field #6 (TRX amount) to the amount of the new bank statement balance. Look for the “NEW BANK BALANCE:” figure on the report printed in Step 7. This report was read and balanced in Step 8.
Print selected check records:
- Accounts Payable (Module 3)
  - Check Account (Task 20)
    - Print Selected Check Records (Sub-task 4)
      - After choosing a printer, answer system prompts as follows:
        
        Please enter - starting TRX # - ending TRX#: Press ENTER for ALL
        
        Starting date: Type in the first day of the new month.
        
        Ending date: Type in the last day of the new month.
        
        Division #: Type one report for each division #/checking account #.

These steps provide an up-to-date checkbook balance. Make sure the “OUT OF BALANCE:” amount is zero. If it is not zero, the amount entered in trx type #6 or #7 may have been wrong. See the document “Checkbook Out of Balance”.

If the NEW BANK BALANCE does NOT EQUAL the BANK STATEMENT:

Make sure the report was run for the correct date range.
- Starting date: Should always be the same date as the last bank and checkbook balances in the computer.
- Ending date: The last day of the month being balanced.
- EXAMPLE: If January is being balanced, and the checkbook and bank balances in the computer are dated 01/01/xx, the beginning date of the report should be 01/01/xx.
Look for a transaction that equals the amount you are off.
Check all the miscellaneous charges and additions. Make sure they are all dated correctly, for the correct amount and cleared correctly.
Check the "ACCOUNT REDUCTION". This should equal the "debits" on the bank statement. The debits on the bank statement are the checks and charges.
- If the "ACCOUNT REDUCTION" is less than the "debits" on the bank statement, then there is a check or charge that was not cleared.
- If the "ACCOUNT REDUCTION" is more than the "debits" on the bank statement, then a check or charge was cleared that should not have been cleared.
Check the "ADDED TO ACCOUNT". This should equal the "credits" on the bank statement. The credits on the bank statement are the deposits.
- If the "ADDED TO ACCOUNT" is less than the "credits" on the bank statement, then there is a deposit that was not cleared.
- If the "ADDED TO ACCOUNT" is more than the "credits" on the bank statement, then a deposit was cleared that should not have been cleared.

NOTE: Most of the time you have to actually take the computer printout and put it next to the bank statement and very carefully check off each transaction. Make sure each transaction on the bank statement is cleared on the computer printout and make sure it is for the correct amount.