Reconcile your bank account
Check that your bank ledger agrees with the bank statement, book missed charges, and lock the period once it ties out.
Bank reconciliation shows which entries in your bank ledger have reached the bank (cleared) and which have not (uncleared). It then proves that your books, adjusted for the uncleared entries, equal the closing balance on your bank statement.
Before you start
- Enter the bank ledger's opening balance in opening balances. Bank import does not post the statement's opening balance, so without it your books cannot match the bank.
- Import the bank statement for the period through bank statement import. Entries posted or matched by the import are cleared automatically.
- Keep the bank statement for the period at hand. You need its closing balance.
Steps
- Open Import & Export > Bank Reconciliation.
- In Bank account, pick the bank ledger.
- Set the From and To dates of the statement period.
- In Statement closing balance (₹), type the closing balance shown on the bank statement.
- Read the Reconciliation summary. The left side works out your books closing balance. The right side takes out the uncleared entries and shows = Adjusted (should match statement).
- If it shows Reconciled — adjusted books ... matches your statement closing, you are done. Go to "Lock the period" below.
- If it shows Off by ₹..., work through the lists below the summary and fix the difference.
The three lists
- Brought forward — uncleared from before ... — cheques you issued or deposits you made before this period that the bank has still not cleared.
- Uncleared (...) — entries in your books for this period that are not yet on a bank statement, such as cheques not yet presented or deposits in transit.
- Cleared (...) — entries the bank has cleared. Click the heading to show or hide them. Cleared on shows the date. Entries cleared by an import carry a Bank import tag.
For a CC or OD account the columns are flipped to suit a loan account. The page shows a Cash Credit tag on the summary.
Mark an entry cleared by hand
Use this for entries that are on the bank statement but were not cleared by an import.
- In Uncleared or Brought forward, tick the box at the start of the row. It is marked cleared as of the period end.
- To undo, untick the box.
An entry cleared by a bank import cannot be unticked here. Go to bank statement import and click Unmatch on that row.
Book a missing bank charge or interest
Use this for items the bank statement shows but your books do not, such as bank charges, interest, or GST on charges.
- Click + Add adjustment.
- Choose Money out (Cr Bank) for a charge, or Money in (Dr Bank) for interest received.
- In Counter ledger (Bank Charges, Interest, etc.), pick the ledger, such as "Bank Charges".
- Enter the Amount (₹), the Date and a Narration.
- Keep Mark cleared on this date (it's already on the bank statement) ticked.
- Click Create voucher. A payment or receipt voucher is created and the summary updates.
Lock the period
- When the proof shows Reconciled, click Finalize & lock.
- Confirm the message. The reconciliation is saved and listed under Past reconciliations.
After this, entries dated in that period cannot be marked cleared or uncleared, and bank lines in that period cannot be matched or unmatched. Finalize & lock only works when the adjusted books agree with the statement within ₹1.
To change a locked period, open Past reconciliations, click Delete on that reconciliation and confirm. The period unlocks.
Export
- Click CSV to download all three lists with dates, voucher numbers, amounts and cleared dates.
- Click Download PDF to save the reconciliation statement as a PDF.
Common problems
- Off by ₹... — usually an entry's cleared status is wrong, a bank charge or interest is not booked, or the dates do not match the statement period. Check the Uncleared list against the statement and add adjustments for anything missing.
- Enter the statement closing balance before finalizing. — type the closing balance from the statement.
- Reconciliation doesn't tie out yet — fix the mismatch before finalizing. — the proof is off by more than ₹1. Fix the difference first.
- A reconciliation already covers ... to ... (id #...). Delete it first if you need to redo this period. — part of these dates is already locked. Delete that reconciliation under Past reconciliations, or choose dates after it.
- This period (or part of it) is already finalized — the dates overlap a locked reconciliation. Finalize & lock stays greyed out until you delete it or change the dates.
- This entry is cleared via a bank import. To unmatch it, use the Bank Import page (Unmatch button on the row). — unmatch it on the import screen instead.