Description
NOTE: If you do not see a Reconcile tab under Cash Management, please reach out to your support team at support@softledger.com to request access to the Cash Management>Reconcile beta program.
The Cash Management>Reconcile module is where users can reconcile their bank statements to the corresponding general ledger accounts.
How to complete a reconciliation
Navigate to Cash Management>Reconcile. Any reconciliations that have been done in prior periods will be listed on the main page.
Click +NEW button in the upper left of your screen to start a new reconciliation. Fill in the required information:
Location - the location/entity which owns the bank account
Ledger Account - populate this field with the general ledger account of the bank account you wish to reconcile
Statement Currency - the currency the bank statement is in
Statement Balance - this is the user-entered value where you'll input the month-end balance from your bank or credit card statement
Statement Date - the month-end date on your statement
Reference - name you want to give the reconciliation (eg, "05.2024 BoA x123 Reconciliation")
Once you hit Submit, you'll be taken back to the home screen where you will see the reconciliation you just created at the top of the list. Click on the ID link to start the reconciliation process.
At the top of the reconciliation, all the details of the bank account and general ledger account will be listed. The bottom half is where you'll see all the transactions that have been booked to the general ledger cash account during the time period.
Statement view:
The statement details in the upper portion of the statement include:
Statement Date - month-end date you input upon creation
Last Statement Date - the last month-end date this Account/Location/Currency combination was reconciled
Ledger Account - the account you input upon creation
Location - the entity you selected as owner of the account
Currency - the Journal Lines in the table will only pull the Journal Lines for the Ledger Account and Location entries in the Posted Currency matching the selected Currency for the statement.
Status - will show as open until you click the lock in the upper left hand corner
Statement Balance - the balance you entered from your bank or credit card statement when creating the reconciliation
Cleared Balance - the balance of the reconciled transactions
Beginning Balance - the cleared balance from the last reconciled statement date
Sum Debits - the total $ of debit transactions cleared in the reconciliation
Sum Credits - the total $ of debit transactions cleared in the reconciliation
Variance - the difference between the statement balance and the cleared balance
Journal lines can now be reconciled and unreconciled in the bottom section of the reconciliation by selecting the checkboxes next to the transactions you’d like to update and then clicking on RECONCILE or UNRECONCILE.
Once an item has been reconciled, there will be a green checkmark in the Reconciled column.
Multiple selections are supported in this view if you'd like to reconcile items in bulk. Please note that selections of items will not hold as you change pages, so it is important to complete reconcile/unreconcile tasks before changing pages.
Note: Only unreconciled transactions can be reconciled, and only reconciled transactions can be unreconciled. If you attempt to take action where that is not the case, you will see an error like the below:
Continue to reconcile your Journal lines until you've gone through each line on your bank statement and the variance in your reconciliation report is zero.
Once all your bank items have been cleared, you can close the reconciliation report by clicking the lock in the top left hand corner.
Important Considerations:
The list of reconciliations on the main page are sorted in chronological order with the most recent appearing first
Complete reconciliations in chronological order. Reconciliation statements cannot be closed if any previous statement is open for that account and Location. Similarly, you cannot open a reconciliation statement if any statements in the future for that account and Location are closed.
Once you create a statement, you can not edit that statement, but rather delete and restart
Custom currencies are not supported when creating statements