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 account.
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
Ledger Account - populate this field with the general ledger account of the bank account you wish to reconcile
Statement Currency
Statement Balance - this is the user-entered value, generally coming from a bank or credit card statement
Statement Date
Reference
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 account during the time period
Statement view:
The statement details in the upper portion of the statement include:
Statement Date
Last Statement Date - the last end date this Account/Location/Currency combination was reconciled
Ledger Account
Location
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
Statement Balance user created value entered when creating statement (generally from a bank account or credit card)
Cleared Balance - the balance of the reconciled transactions
Beginning Balance - the balance from the last reconciled statement date (previously chronologically)
Sum Debits
Sum Credits
Variance - the difference between the statement balance and the cleared balance
Journal lines can now be reconciled and unreconciled by selecting the checkboxes next to the transactions you’d like to update. Multiple selections are supported in this view, but selections will not hold as you change pages, so it is important to take action before changing pages.
See a selection of the first 5 lines of the available journal lines for the reconciliation of this Ledger Account/Location/Date/Currency combo:
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:
Important Considerations:
Statements are always sorted by “endDate” in descending order in the statement table (Cash Management>Reconcile)
Custom currencies are not supported when creating statements
Created statements must have an “endDate” after the most recently closed statement with the same Location/LedgerAccount/Currency combo (i.e. you can not complete a reconciliation prior to a previously created reconciliation, they must be chronological)
All newly created statements are set to ‘open’ status
Statements cannot be closed if any previous statement is open that has the same Location/LedgerAccount/Currency combo (i.e. statements must be closed in chronological order)
Statements cannot be reopened if any later statements are still closed with the same Location/LedgerAccount/Currency combo (i.e. statements must be either opened or closed in chronological order, similar to how accounting periods work)
Once you create a statement, you can not edit that statement, but rather delete and restart
On the technical side, we now have a statement object to represent bank statements, which contains the following details:
{
_id: number;
reference: string;
description: string | null;
LedgerAccountId: number;
LocationId: number;
status: string;
currency: string;
endDate: string;
balance: string;
createdAt: Date;
updatedAt: Date;
}