Reconciling Bank Transactions

Once a bank statement has either been imported or manually entered into the system, it can be reconciled to match the applicable system documents, such as supplier invoices, sales invoices, refunds, BACS runs, etc.

The bank reconciliation process can either be carried out manually (where you match individual transactions on the bank statement to the documents in the system) or using an automatic system rule, which carries out this process for you with the option to check the results.

This topic describes how to carry out a manual bank reconciliation. For more information on the automatic method, please see Reconciling Bank Transactions Using an Automated Process.

1. Select Banks, then select Bank Reconciliation from the menu.

   If using IRIS Financials Version 7.0.2258 or later, select Manual Bank Reconciliation.
   

2. The Bank Reconciliation wizard is displayed. Select Drill (...) in Bank Account, then double-select to select the required bank account from the Select a bank account dialog.
   

3. The account number of the selected bank is displayed in Bank Account. Select Match one to one, then select Next.

   Ensure Auto Reconciliation is not selected.

   

4. The Manual Match page is displayed. Bank statement transactions that have not yet been reconciled are displayed in the left-hand panel, and cashbook transactions that have not yet been reconciled are displayed in the right-hand panel. Select the bank statement transaction, then the cashbook transaction to which it is to be reconciled (you can select multiple transactions to be reconciled by holding down the Ctrl key), then select MATCH ITEMS.
   

   Selected transactions must balance to 0.00 in order to be reconciled. The difference between the transactions is displayed in Difference, as shown in the following graphic. If the difference is not 0.00, the difference value is displayed in red and must be corrected as described in Reconciling Transaction Variances.

   

5. If a transaction has been accidentally matched to the incorrect transaction on the cashbook, select the transaction, then select CLEAR MATCH.
   
6. When all required transactions have been matched, select Next.
   

7. The Summary page is displayed. The transactions that have been matched for reconciliation are displayed. Check the details of the matched items, then select Reconcile to confirm the matched transactions.

   Details of the matched transactions can be displayed by selecting Expand (+) adjacent to required transaction.

   

8. The Report page is displayed confirming the number of items reconciled. Select Finish.
   

Reconciling Transaction Variances

There may be various reasons why a transaction listed on the bank statement does not match, or is not on the cashbook when reconciling bank transactions. Where variances occur, these can be corrected by adding the applicable transaction to the cashbook directly from the Bank Reconciliation wizard. A new transaction may be needed for any of the following reasons:

• to add a transaction that is listed on the bank statement but not shown on the cashbook (i.e. a transaction missing from the system).

• to add an additional transaction to an existing transaction where only part of the value is shown on the cashbook.

• to replace an incorrect cashbook transaction.

If creating a new transaction to replace an incorrect transaction displayed on the cashbook, the incorrect transaction needs to be cancelled. For more information, please see Reversing a Supplier Payment.

1. From the Manual Match page of the Bank Reconciliation wizard, select ADD CASHBOOK.
   
2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select a document type from the Select a document type dialog.
   
3. Next, select Drill (...) in Input form. Double-select to select the required input form from the Select an input form dialog. In the following example, Purchase Payment, has been selected.
   
4. The Date field defaults to the date that you are entering the information, i.e. today's date. The date must be the same date as the date of the transaction on the bank statement.
   

5. The Period field defaults to the current accounting period. The period needs to be the accounting period in which the transaction on the bank account was paid or received.

   If the required accounting period is now closed and no longer available, select the next open accounting period by selecting Drill (...) in Period, then double-select to select the required period from the Select a period dialog.

6. Select OK to confirm your selections. The applicable document input form is then displayed.
   
7. The selected document input form is displayed. Enter the details of the transaction (the details entered must match the details of the original transaction), then select POST.
8. Select X in the top right-hand corner to return to the Bank Reconciliation Manual Match window. In the following example, details of the CH Stationery Ltd transaction, have been entered in the Purchase Payment document input form.
   

9. On the Bank Reconciliation Manual Match window, select REFRESH to display the added cashbook transaction. Match the bank statement transaction to the cashbook transaction.

   REFRESH clears any matched or partially matched transactions.
   
   If using IRIS Financials Version 7.0.2223, to keep matched or partially matched transactions on the screen, select REFRESH AND RETAIN.
   
   For IRIS Financials Version 7.0.2258 or later, REFRESH AND RETAIN has been removed and is now done automatically.

   
   

Also see:

1. Reconciling Bank Transactions Using an Automated Process
2. Importing Bank Statements
3. Manually Adding a Bank Statement
4. Reversing a Supplier Payment