Bank reconciliation

Both the automatic and manual bank reconciliation can be found under the Finance & Administration module.

The purpose of automatic bank reconciliation is to compare the transactions on the bank statement, with the postings on the corresponding holding account in the WorkBook General Ledger. This ensures that the actual bank account and the finance account for the bank within WorkBook are reconciled and differences known and highlighted .

The manual bank reconciliation is only used to set up the starting balance on the holding account. Thereafter the Automatic Bank Reconciliation, found in the “Month End” sub menu should be used.

Manual reconciliation

Under the manual bank reconciliation you can specify a date to indicate that all financial postings up to this date have been settled. The amount entered is the balance of the chosen holding account as of the selected date.

Let’s say we’d like to start reconciling the bank from 1st of June. In this case, we’ll tell WorkBook that all postings have been settled up until 31st of May by ticking checkbox by the “balance” column at the last posting on 31st of May or the most recent entry prior to this date. Otherwise, financial postings that have already been reconciled will still appear under automatic reconciliation, when we settle June 30th.

Automatic reconciliation

To run the Bank Reconciliation you need to first import the Bank Statement transactions for the period you are reconciling. When importing this file for the first time, some setup will be required, which is described in detail in this guide.

Now we have two tables next to each other, the one on the left contains the unreconciled postings in the WorkBook ledger account, and the one on the right contains the imported transactions from the bank statement. You can filter the Bank account transactions up until a particular date, by using the Date field. Workbook can assist in reconciling transactions using the “Auto elimination” function. This matches transactions with the same date and amount. It also approves the reconciled items at the same time, which gives a shaded highlight to each matched item. It also applies a number to each reconciliation. Any pairings can be unreconciled using the “Remove Eliminations” button, which removes the reconciliation, removes the shading and the number, and makes each line once more available for reconciliation.

You can also choose to manually match items, but have Workbook close each reconciliation once you’ve selected items that balance. To do this, tick the “Close elimination when in balance” check box. This is particularly useful if you are matching off items that have different number of line items in each window. As soon as your selection balances, Workbook will automatically close the elimination, again applying the shading and providing a numeric value to that elimination.

Again, any elimination can be unreconciled using the “Remove Eliminations” button, which removes the reconciliation, removes the shading and the number, and makes each line once more available for reconciliation.

Finally, you may choose to manually apply the matching and close the elimination yourself. To do this you can tick each line item individually in the two upper boxes that you wish to reconcile, and once you are happy with the selection you want to eliminate, use the “Approve” button in the upper menu bar to approve and close the elimination. This again applies a shading to the eliminated items and a numeric value. NOTE – any manually reconciled eliminations must first be approved before the Eliminations are finalised.

Once you have completed your reconciliation, you should finalise it using the “Finalise eliminations” button. Workbook will ask you to provide a name for the reconciliation, and a date up until which the elimination is being applied. You can provide any name, but you must ensure that the date you are applying is not in the future, and does not pre-date any of the transactions you’ve reconciled.

Reconciled transactions are removed from each of the upper squares, leaving those entries that are unreconciled. This would suggest that items in the top left hand square have been posted to your general ledger, but not yet appeared in your bank statement. You should review these items to ensure they are all genuine timing issues. Transactions showing in the upper right hand square of those entries that have appeared on your bank statement, but which have not been posted to your Bank ledger account. You should review these items to ensure they are all valid and thereafter they should be posted to the bank account in your general ledger. Once posted to your ledger, they will become available as items for reconciliation in the upper left hand square.

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