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| = INTRODUCTION TO THE BANK RECONCILIATION WITH SOLACE ACCOUNTING =
| | #REDIRECT [[Accounting#11. Bank Reconciliation]] |
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| Solace accounting gives the ability to match your transactions captured through the cashbook journals and your bank statement. You will notice the bank statement has more added transactions like bank cost and interest paid and interest received that you did not know at the time you captured your cashbook. In the same way debit orders and electronic payments as well as money paid directly to your account by other parties. These need to be captured in the cash book journal to conclude the reconciliation.
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| There are many reasons for why you should carry out this bank reconciliation process.
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| This will help to see that all transaction which went through the bank are the same as those going through your solace accounting program.
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| Also, it will help to see that all transactions recorded through solace accounting are the same as those recorded through your bank.
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| It checks to see that indeed your bank statement is in fact correct.
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| In simple, the bank reconciliation is used to compare your recorded transactions through solace accounting to those recorded and printed on your bank statement. This will help to see if there are any differences between these two sets of records. The ending balance of transaction recorded with solace accounting is called '''the book balance''', displayed on the report as '''balance according so solace''' while the '''bank’s''' version is called '''the bank balance.'''
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| For this tutorial, we have received 2 receipts from customers, and issued 2 cheques to suppliers. These transactions are now in our cashbook then we receive this bank statement
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| = BANK RECONCILIATION IN SOLACE ACCOUNTING =
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| To do the Bank Reconciliation
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| From the main screen click on '''Cashbook '''menu button
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| Under Process in the navigator double click on '''Bank Reconciliation. '''The bank reconciliation screen will be displayed as follows.
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| Click on the black button of bank Account box to select the cashbook account and press enter.
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| Click also to select the period in the next box and press enter.
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| In statement Balance box, enter the closing balance as on the Statement received from the bank and press enter.
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| If the Statement doesn’t include transaction up to the end of the selected period then change the ending period in the detached date selector. Press enter or click inside the central white space to load all unreconciled transactions.
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| Notice on this screen that all unposted transaction – still in opened batches – are displayed with amount in bold.
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| The top info panel displays:
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| '''Receipts Total''': This is total of all unreconciled transaction in the list.
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| '''Payments Total''': This is the total of all the unreconciled transaction in the list
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| '''Reconciled Total''': This is total of all reconciled transaction added with all currently unreconciled. When reconciling this total will be reduced and match the '''Transaction Total''' when all transactions are reconciled.
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| '''Transaction Total''': The current posted transactions or the current ledger account transaction recorded by Solace Accounting.
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| '''Difference''': This is the indicator showing the reconciliation comparison. It is the difference between the '''Reconciled''' and the '''Transaction Total''' this value will be 0 when all transaction are completely reconciled.
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| The reconciliation report can be printed directly from this screen to report details of reconciliation.
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| To reconcile items
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| Using the search function.
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| At the bottom, select how you want to find your transactions on the statement. By reference is the default choice. Let select by amount and press enter. The columns order will change accordingly and display the amounts columns first and the second box will change from '''Find Reference '''to '''Find Amount.'''
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| If using refence then In the '''Find Reference''' box type in the reference from the bank statement. If the reference is found then the correct amount will be automatically filled in the '''Amount to reconcile''' box. Press “enter”.
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| As we are using search by amount, let type in 1500 and press enter. The system will seek for the amount and display the result in the last box. Press enter to reconcile the transaction.
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| If the amount is correct then press enter to reconcile the transaction is not enter the correct amount. If the amount entered is found the transaction will be set as reconciled not then the search will clear for the next search. Press enter to do next search.
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| Using the mouse and scrolling.
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| You can use the mouse and scroll in the list. When the correct transaction line is found, click in the checkbox to set the transaction as reconciled or from the keyboard, press the Space Bar to same effect.
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| When all reconciled transactions were identified and ticked, press the button '''Process''' to commit your work to solace. If not committed, the work will be cancelled.
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| {| class="wikitable"
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| |-
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| ! Note: When clicking on show report in the middle of the work, the current work will be committed before reporting. In the same way, the Refresh button will commit current work and reload the transaction list. Use this to allow new transaction to be added to the list while working on the reconciliation.
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| |}
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| The difference after all transactions has been reconciled is -10 172.00 which is the opening balance -10 250.00 bank credit plus the Bank charges 78.00 the calculation is -10 172.00 + 78.00 = -10 172.00
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| Only after receiving the bank statement that you will know what your bank charges are from the bank. The bank charges that need to be paid must be entered using “Payment Cashbook” as debits and your interest received must be entered in your “Receipt cashbook”.
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| Here is the cashbook including the entry for the bank charges.
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| Close the cashbook and re-open the recon screen, just click in the white space as all parameters are saved then tick the bank charges.
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| The difference is now exactly the opening balance that need to be entered using general journal opening balance.
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| {| class="wikitable"
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| |-
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| ! Note: Entering Opening balances is the first think that one must do before starting to use the system.
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| |}
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| Refer to module E “Using journal” in section “ENTERING OPENING BALANCES” to enter the opening balance for the bank account 810000. Process and post then reprint the recon report. The difference is now Zero and reconciliation is completed.
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| The ledger transaction report will show the details after posting the cashbook.
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| = WHERE FROM HERE =
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| More details on journal process can be found in specially module E or on the wiki page accessible from the main screen in solace Accounting.
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