Bank Reconciliation is the main program of the Bank Reconciliation Subsystem.  Bank Reconciliation is on the BRS menu code.  In this program, a listing is displayed of all outstanding cash transactions for a given bank account.  This program works exactly like a checkbook.  All cash withdraws, such as cleared checks, service charges, fees, and transfers, will appear as DEBITS.  All cash deposits will appear as CREDITS.

REMEMBER:  The Bank Reconciliation Subsystem is written in bank language.  A cash account increase is a debit in EZZ but a credit in the Bank Reconciliation Subsystem.  A cash account decrease is a credit in EZZ but a debit in the BRS.

In the Bank Reconciliation Subsystem, options are available to:

Select or Mark those transactions that have been recognized on the current bank statement, and

Add or edit Adjustments.  Adjustments are defined as miscellaneous transactions not recognized elsewhere in the system, but appear on the bank statement.

EXAMPLE:  A Service Charge that appears on a bank statement would be entered as a Debit Adjustment in Bank Reconciliation.  At the end of the reconciliation process, an opportunity is given to post this adjustment to the General Ledger.

Reconciliation Procedures

Branch Code.  Enter the branch code for the reconciliation to be performed.  If the branch code is unknown, enter "?" to initiate a search.  If all branch codes are to be reconciled, enter Spacebar.

Bank Code.  Enter the bank code that represents the General Ledger cash account to be reconciled.  Every bank code in the EZZ system has a default General Ledger cash account.  Look at the bank statement to determine which bank code to enter in this field.

Statement Balance.  Enter the ending balance from the bank statement received from the financial institution.

Enter the statement date.  Enter the last date which displays transactions on the bank statement.  It is usual to enter the last date of the accounting period for a more accurate reconciliation of the monthly activity.  This gives a reconciliation that lists or displays all activity in the EZZ system for the accounting period being reconciled.  If the actual statement ending date is entered, certain items with a posting date later than the date entered will not display.

Enter G/L period end for this statement date.  Enter the General Ledger period for the reconciliation.

At this point, the reconciliation transactions will display.  The prompt will read Arrow Keys to Move Scroll Bar, Pg Up/Pg Dn to View Data, M=Mark, U=Unmark, G=Group Marking, A=Add Item, R=Reconcile, E=Edit Item, D=Delete Adjust, F4=End.

Arrow Keys.  Use the arrow keys at the right of the alpha keyboard to move the highlight, or scroll, bar up and down to highlight the transaction to be processed.

Pg Up/Pg Dn.  Use the page up or page down keys, located above the arrow keys, to move to a second, or subsequent page, of the reconciliation display.  If only one page displays, this option is not available, but will prompt.

M=Mark.  To select and mark a transaction that has been recognized on the bank statement, highlight the transaction and press "M" without pressing enter.  This will place a "Y" in the column labeled Clr?.  This signifies that the transaction has cleared the bank and has been checked off the system bank reconciliation.

U=Unmark.  To unselect a transaction marked in error, press "U" without pressing enter.  This will remove the "Y" inserted by marking the transaction.

G=Group Marking.  If a group of transaction clear the statement that have consecutive numbers, such as check numbers, press "G" without pressing enter.  This will display a window titled Group Marking.  Enter the starting check number for the group and then the ending check number.  The third field inside the window asks whether to mark or unmark the items entered.  As shown, group marking includes group unmarking also.  The system will prompt OK to Mark this Range (Y/N)?, F4=End.  If the range entered is correct, enter "Y".  If incorrect and changes are to be entered, enter "N".  To discontinue the group marking, enter F4.

A=Add Item.  To add an item to the reconciliation, enter "A".  This will display a window titled Post Adjustment.  Enter the G/L account to be effected by the adjustment.  Enter the date of the adjustment. Enter a description of the adjustment.  Enter the amount of the adjustment.  The last prompt asks Affect G/L.  If this adjustment is to affect the General Ledger, enter "Y".  This would include service charges, wire transfer fees, etc.  If the adjustment is not to affect the G/L, enter "N".  This would include checks lost during an error or power outage that did update the G/L accounts but did not update to the Bank Reconciliation Subsystem.  The system will then prompt Is Data OK (Y/N)?, F4=End.  If the data entered is correct, enter "Y".  If not correct, enter "N" and correct the entries.

E-Edit Item.  The only items that can be edited are adjustments.  Checks and deposits cannot be edited.  Highlight the adjustment to be edited.  This will display the Post Adjustment window again.  The information concerning this adjustment will also be displayed.  Make any necessary edits to the information shown.  NOTE:  Updated adjustments cannot be edited.  An updated adjustment is an adjustment that has been marked and removed from the reconciliation.

D=Delete Adjust.  To delete an adjustment not updated, as discussed in #7 above, highlight the adjustment and enter "D" without pressing enter.  This will remove the adjustment from the reconciliation. 

IMPORTANT:  Adjustments entered to update to the General Ledger will not do so until the adjustment is marked by reconciliation and a Reconciliation Report is printed and updated.  At the end of the Reconciliation Report, the line item titled Adjustments has an asterisk.  This asterisk states Adjustments shown have been marked this cycle.  This means that the adjustment entered must be marked to show on the reconciliation and update the General Ledger.

RECONCILIATION REPORT

The Reconciliation Report prints at the end of the reconciling process.  This report is based on the entries made and displays the following information:

A listing of all outstanding items shown by check #, Type, whether M=Manual Check, A=System Check, or S=Salesman Check.  Deposits are not typed. 

At the end of the report, a mini reconciliation is printed showing:

Statement Balance.  This is the balance entered at the beginning of the Bank Reconciliation program.

Outstanding Credits and Debits.  This is a total of all the outstanding checks and deposits not shown on the bank statement.

Current Balance.  This is the total of 2 and 3 above.  This is the balance the General Ledger must be reconciled to. 

Current G/L Cash Account Balance.  This is the balance of the cash account being reconciled.  This amount shown is the balance as of the end of the last day of the accounting period entered.  NOTE: If the ending statement date is entered as other than the last day of the accounting period being reconciled, the G/L cash account balance may not show accurate.  Refer to above under Reconciliation Procedures.

Adjustments.  The adjustments marked under this reconciliation will be shown by total in this field. 

Adjusted G/L Cash Account Balance.  This is the total of 5 and 6 above.  This total should agree with the Current Balance (#4 above).

Variance.  If #4 and #7 above do not agree, the difference is shown in this field.  The reconciliation of this amount, for the most part, becomes a manual reconciliation.  The items found may be entered as adjustments.

IMPORTANT:  Do not update the Reconciliation Report until the reconciling fields are audited and the variance is FULLY reconciled.