Bank Reconciliation

This feature, or some fields and options described, might not be available depending on your settings, security rights, or platform package.

Bank Reconciliation

Among the most important statistics available to your agency are your bank account balances. To make sure the numbers you rely on are correct, you likely reconcile the bank statement to your records each month. The Bank Reconciliation feature provides an automated means of tracking bank activity and allowing you to flag cleared transactions as reported by your bank. You also have the ability to enter interest and bank charge adjustments as part of the reconciliation process.

Accessing the Bank Reconciliation Form

Access Bank Reconciliation from an individual bank within the Bank Center.

Creating a New Bank Reconciliation Statement

Open the Bank Center.
Find and open the bank account to be reconciled.
Click Actions > New Bank Reconciliation. The Bank Reconciliation form opens.

If an unposted bank reconciliation already exists for this bank account, the following message displays. Click OK to close the message.:

Opening an Existing Bank Reconciliation Statement

Click the Statements tab in the Bank Center, and locate the existing bank reconciliation. The Status of this bank reconciliation is Unposted.

The Ending Statement Date translates to the Date link under the Statements tab in the Bank Center.

If you cannot find the Unposted statement you want to work on, select a Date Range in the View Options that includes the Ending Statement Date of this statement.

Click the desired statement date link. The bank reconciliation opens.

Reconciling a Statement

Bank Statement Information

In this section you enter information based on the bank statement received from your bank.

Fields...	What is this...
Statement Description	Type in any description you like. This is not a required field. If left blank, the system enters the Ending Statement Date plus 'Bank Reconciliation'. Example: "4/30/03 Bank Reconciliation".
Beginning Statement Date	This field defaults to the previous Ending Statement Date plus one day. It is available to be changed.
Ending Statement Date	Enter the statement ending date as shown on your bank statement. This is a required field. The Ending Statement Date translates to the Date link under the Statements tab in the Bank Center. If you cannot find an in-progress statement that you want to work on, select a Date Range in the View Options that includes the Ending Statement Date of this statement.
GL Balancing Date	This field is important as it controls the items that display in the Open Items to Clear list. All open items as of the GL Balancing Date appear. The date defaults as the Ending Statement Date but can be changed. The GL Bank Account Balance found in the Reconcile Bank Statement and GL Bank Account section, also pulls as of this date. The most common reason for changing this date is to clear an item on the bank statement that was posted with a date outside the bank statement period. You do not need to alter the beginning or ending statement dates.
Beginning Statement Balance	If at least one bank reconciliation is posted, this field defaults to the closing balance of the previous statement. If this is the first reconciliation, enter the beginning statement balance from the published bank statement.
Ending Statement Balance	Type in the ending statement balance as shown on the published bank statement.
Build Statement	Click this button to build the statement. If you change any items in the Bank Statement Information section during the reconciliation process, you must click the Build Statement button again for the changes to be applied.

Reconcile Bank Statement and GL Bank Account

A number of the values are calculated as part of the build statement process.

Group...

What is this?

Bank Statement Balance

Field	Source
Beginning Statement Balance	The amount entered in the Beginning Statement Balance field in the Bank Statement Information section. This amount is updated when you change the corresponding amount in the Bank Statement Information section.
Cleared Items	The total of all Cleared Items in the Open Items to Clear section. This field is automatically updated whenever you add or remove an item from the Cleared Items grid.
Service Charge	The amount entered in the Service Charge section. This field is automatically updated any time the amount is changed in the Service Charge section.
Interest Earned	The amount entered in the Interest Earned section. This field is automatically updated whenever you change the amount in the Interest Earned section.
Total	A calculation of the total of: Beginning Statement Balance Plus/minus cleared items depending on whether the amount is a (+)/(-) The cleared items total can be a positive or a negative number depending on whether total deposits are greater or less than the checks. Minus service charges. Plus interest earned.
Ending Statement Balance	The Ending Statement Balance amount entered in the Bank Statement Information section. This field is updated whenever the Ending Statement Balance field is changed in the Bank Statement Information section.
Difference	Calculates the Total minus the Ending Statement Balance and displays the result. The reconciliation cannot post unless this amount equals zero (0.00).

GL Bank Account Balance

Field	Source
Ending Statement Balance	The Ending Statement Balance amount entered in the Bank Statement Information section. This field is updated whenever the field is changed in the Bank Statement Information section.
Open Items Through GL Bal Date	The total of the Open Items listed in the Open Items to Clear section. This total updates as items are moved from Open to Cleared.
Service Charge	The amount entered in the Service Charge section. This field is automatically updated whenever the amount is changed in the Service Charge section.
Interest Earned	The amount entered in the Interest Earned section. This field is automatically updated whenever the amount in the Interest Earned section is changed.
Total	A calculation of the total of: Ending Statement Balance Plus/minus all open items depending on whether the amount is a (+)/(-) The open items total can be a positive or a negative number depending on whether total deposits are greater than or less than the total checks. Minus service charges Plus interest earned
GL Bank Account Balance	The balance for the selected bank account as of the GL Balancing Date entered in the Bank Statement Information section. If you are viewing a posted bank reconciliation, this field agrees with the GL bank balance as of the reconciliation posting date.
Difference	Calculates the Total minus the GL Bank Account Balance and displays the difference. The reconciliation cannot post unless this amount equals zero (0.00).

Service Charge

Use this section to enter the service charge reported on the bank statement.

Field	What is this?
GL Date	Enter the date you want this amount to post to the general ledger. The GL Date field defaults to the Statement Ending Date but can be changed.
GL Number	Select the general ledger number where you want to post the service charge. The list includes expense detail accounts in the 60000 number range.
Charge Amount	Enter the total amount of the service charge in the Charge Amount field.

If you enter service charges through the Bank Adjustments form with a date that falls within the bank statement date range, the charge appears as a journal entry to be cleared.

Business Unit Allocation

To split the service charge across the division's business units click New.

Field/Group

What is this?

Business Unit

Group/Field	What is this?
Division	The Division associated with this Bank Account. View Onlyand cannot be changed.
Branch	A list of the Branches set up for your agency and associated with this division.
Dept(artment)	A list of the Departments set up for your agency and associated with this division and the selected branch.
Group	A list of the Groups set up for your agency and associated with this division, branch, and department.

Amount

The amount pre-fills based on the Charge Amountyou entered.

Do the following to split the service charge across multiple business units:

Select the Branch, Department, Group combination.
Change the amount to the allocation for the first business unit combination.
Click Add.
The Allocation amount on the section header updates with the allocated amount.
Click Newand repeat steps 1 through 3, until all of the service charge has been allocated.

Interest Earned

Use this section to enter the interest reported on the bank statement.

Field	What is this?
GL Date	Enter the date you want this amount to post to the general ledger. The GL Date field defaults to the Statement Ending Date but can be changed.
GL Number	Select the general ledger number where you want to post the interest. The list includes expense detail accounts in the 40000 number range.
Interest Amount	Enter the total amount of the interest earned in the Interest Amount field.

If you enter interest earned through the Bank Adjustments form with a date that falls within the bank statement date range, the interest appears as a journal entry to be cleared.

Business Unit Allocation

To split the interest earned across the division's business units click New.

Field/Group

What is this?

Business Unit

Group/Field	What is this?
Division	The Division associated with this Bank Account. View Onlyand cannot be changed.
Branch	A list of the Branches set up for your agency and associated with this division.
Dept(artment)	A list of the Departments set up for your agency and associated with this division and the selected branch.
Group	A list of the Groups set up for your agency and associated with this division, branch, and department.

Amount

The amount pre-fills based on the Interest Amountyou entered.

Do the following to split the interested earned across multiple business units:

Select the Branch, Department, Group combination.
Change the amount to the allocation for the first business unit combination.
Click Add.
The Allocation amount on the section header updates with the allocated amount.
Click Newand repeat steps 1 through 3, until all of the interest has been allocated.

Open Items to Clear

Field/Group

What is this?

Open Items

Items that have never appeared on a posted Bank Reconciliation Statement for this bank account through the GL Balancing Date entered in the Bank Information section.

The Open Items Grid

You can sort the items in the grid by clicking the header row you want to use for the sort.

Column	What is this?
Date	The date the item posted to the general ledger.
Tran	The type of transaction.
#	This number varies based on the type of transaction. Check number for checks and Reference number for deposits and journal entries.
Payee/Description	If the item is a check, then the Payee Name appears here. For other transaction the Description entered for the item appears in this field.
Amount	The total amount of the individual transaction.

Cleared Items

Items you have selected from the Open Items list and doubled-click or click Add to move it to the Cleared Items list.

The Cleared Items Grid

You can sort the items in the grid by clicking the header row you want to use for the sort.

Column	What is this?
Date	The date the item posted to the general ledger.
Tran	The type of transaction.
#	This number varies based on the type of transaction. Check number for checks and Reference number for deposits and journal entries.
Payee/Description	If the item is a check, then the Payee Name appears here. For other transaction the Description entered for the item appears in this field.
Amount	The total amount of the individual transaction.

Adjust

Use to open a Journal Entry form where you can adjust the original transaction. The adjusting journal entry you create using this link will post when you post the Bank Reconciliation Statement.

Select an item from the Open Items list and click this button to move it to the Cleared Items list.

You can also double-click the item to move it from the Open to Cleared Items list.

Select an item from the Cleared Items list and click this button to move it back to the Open Items list.

You can also double-click the item to move it from the Cleared to Open Items list.

Click to move all items in the Open Items list to the Cleared Items list.

Click to move all items in the Cleared Items list to the Open Items list.

All Open Items

Group/Field	What is this?
Deposits	View only. The count and amount of the deposits appearing in the Open Items list.
Checks	View only. The count and amount of the checks appearing in the Open Items list.
Journal Entries	View only. The count and amount of the journal entries appearing in the Open Items list.
(Total)	View only. Total amount of Deposits, Checks, and Journal Entries appearing in the Open Items list.

Show

Field	What is this?
All	Select this option to see all Open Itemsavailable based on the general ledger date selected.
EFT	Select this option to see only Electronic Funds Transfers in the Open Items available based on the general ledger date selected.
Checks	Select this option to see only Checks in the Open Items available based on the general ledger date selected.
Deposits	Select this option to see only Deposits in the Open Items available based on the general ledger date selected.
JE	Select this option to see only Journal Entries in the Open Items available based on the general ledger date selected.

Cleared Items

Group/Field	What is this?
Deposits	View only. The count and amount of the deposits appearing in the Cleared Items list.
Checks	View only. The count and amount of the checks appearing in the Cleared Items list.
Journal Entries	View only. The count and amount of the journal entries appearing in the Cleared Items list.
(Total)	View only. Total amount of Deposits, Checks, and Journal Entries appearing in the Cleared Items list.

Reconciling Items

Compare the list of open items to the cleared items from your bank statement.
If an item shows as cleared on the bank statement, select it in the Open Items list and click the Add button (or double-click the item) to move it to the Cleared Items list.

Only checks with check numbers (handwritten, printed) are available to be cleared.

Continue to move items from the Open Items list to the Cleared Items list until the Cleared Items totals for Receipts, Checks and Journal Entries agree with the total cleared items on the bank statement.
Use the Remove button to move an item from the Cleared Items list back to the Open Items list.

Adjust Link

Once an item is moved to the Cleared Items list, if you note that the AMS360 posted amount does not agree with the cleared amount on the bank statement, you can adjust the transaction.

Select the cleared item to be adjusted and click the Adjust link. The Bank Reconciliation Adjusting Journal Entry form opens.

The bank reconciliation is automatically saved when the adjust link is accessed.

The JE Date defaults to the date of the original transaction but can be changed.
Journal Memo displays a default description for the journal entry, but can be changed.
The Totals group is updated as debit and credit amounts are entered.
Select the voucher row to be adjusted and click Edit.
Enter in the correct amount of the transaction. A journal entry is created for the difference amount. Click Update.
Make sure the Debits equal the Credits and the Balance is 0.00 for your adjustment.
Click Save or Save and Close. You are returned to the Open Items to Clear section of the Bank Reconciliation form. The adjustment is added as a journal entry to the Cleared Items grid.

An adjustment using this feature cannot be made to any bank transaction (check, deposit or journal entry) that has a statement (account current, commissions payable or direct bill) attached.

Statements are made up of billing transactions that should not be altered through a bank reconciliation adjustment. In instances where a minor correction is needed, perhaps due to a posting error by your bank, you can make an adjusting journal entry, using the description section to reference the date of the bank statement where the bank error occurred and the original deposit/check/JE date.

This adjustment can then be pulled into the open bank reconciliation to balance to the bank posted amount.

Conversion Items

This section refers to open bank transactions entered prior to your conversion to AMS360.

Conversion item amounts are included in the Open and Cleared item totals for this statement.

Conversion Items	What is this?
Conversion open item (from bank setup)	The amount pulled from the Conversion Open items Amount field from Bank Setup, and represents uncleared bank transactions from your prior agency management system.
Total conversion items previously cleared	The amount of bank transactions from your prior agency management system that have been cleared on previous AMS360 bank statements.
Remaining open conversion items to clear on this statement	The remaining uncleared items from your prior agency management system.
Conversion items cleared on this statement	The total amount of cleared transactions from your prior agency management system found on the current bank statement.
Remaining open conversion items	The uncleared items from your prior agency management system.

Posting and Deleting

File menu options on this form are as follows:

Menu Option	Icon	Uses
Post		When Post is selected: Difference fields in the Reconcile Statement & GL Bank Account section must be zero (0.00) before the reconciliation posts. Journal entries are created for Service Charges, Interest Earned, and Adjustments.
Save		Saves all entries and remains in the form.
Save & Close		Saves all entries and closes the form.
Close	TBD	Closes the form without saving any entries.
Delete		Closes the form and deletes the bank reconciliation statement.

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