Bank Rec Discrepancy

Title: 0154-Bank Reconciliation Discrepancy

Support Note: 0154-Bank Reconciliation Discrepancy.doc

This Support Note is Suitable for:

-	Databuild for Windows 2-18sp2 and higher

Introduction

A brief instruction on ‘how to’ find the cause of a Bank Reconciliation Discrepancy

Occasionally when doing a Bank Reconciliation a Discrepancy may develop the following guide provides a list of Actions to help find the cause of the Discrepancy so that it can be resolved.

Disclaimer: This information is of a generic nature. For specific advice regarding your particular circumstances please seek assistance from your Accountant, the Taxation office in your country or your IT Consultant as appropriate.

1.	Bank Reconciliation Check List

A.	The opening balance should match the physical bank statements opening balance

B.	The closing balance should match the physical bank statements closing balance

C.	The total of the withdraws should match the totals on the physical statement

D.	The total of the deposits should match the totals on the physical statement

E.	There should be no reconciled transactions or statement lines dated later that the close date of the bank statement

F.	There should be no statement lines (left screen) for past or future bank reconciliations.

G.	Check the opening balance of your Bank in the General Ledger by running an Opening Balances report and comparing this to the Balance sheet for the close of the prior financial year both figures should be the same.

H.	If after all of the above there is still a Discrepancy you should print a Banks report and cross check every transaction compared to the Physical Bank Statement (see worked example – following pages).

2.	Worked Example of Discrepancy

2.1.	The Bank Reconciliation Report below is showing a current discrepancy of $-1000, following the checklist points A to D no error has been found

2.2.	Next you would check for future dated transactions, the easiest way to do this is to change the “Display From” and “Until” dates to future dates, in this example the original statement closing date was the set to the 22/5/06

2.3.	It this example there is a transaction future dated, in this case this transaction is on the statement therefore the date on the actual payment transaction will need to be changed via the Audit Trail.

2.4.	Once the transaction is corrected change the “Display From” and “Until” back to the original settings and re-run the Bank Reconciliation Report, the Discrepancy should be fixed or improved.

2.5.	If there is still a Discrepancy check the General Ledger Opening Balance for the Bank Ledger, this should match the Prior Year Balance sheet, from when you closed the year, do not use a newly printed Balance Sheet.

2.6.	In this example the balances are correct, so you would proceed to the next step.

2.7.

The last step is to print a Banks Report from the General Ledger Reports Screen, this report should be cross checked against the Actual physical Bank Statement, as the cause of the discrepancy can be a transaction of any date, i.e. not necessary from the current period or year, you will need to print the whole bank report, if it is a high transaction account you could start at the end working your way back, note that the date on this report refers to the transaction date, not the reconciliation date.

Ø	If the Transaction is on a reconciled statement it should appear on the report with a “R” next to it

Ø	The amount of the “R” Transaction should be the same on the report and statement

Ø	Only transactions on a reconciled statement should appear with an “R”

2.8	In this example the transaction dated the 01/09/05 DEPOSIT 212 $500 is not on any of the Physical Bank Statements therefore it should not be marked with “R” for reconciled, to fix this enter into the Audit Trail and remove the tick from this transaction and re-run the Bank Reconciliation Report.

2.8	After the correction in the Audit Trail there is now no Discrepancy.

For further assistance Contact Databuild Support:

Australia

Phone: (03) 9531 9833

support@databuild.com.au

New Zealand

Phone: (09) 360 4772

support@databuild.co.nz