CHECKBOOK "Out of Balance":

Verify, by looking at the reports saved last month when checking account was reconciled, to be sure last month was not "Out of Balance".  If the checking account was “Out of Balance”, then go back to last month and begin using these instructions with last month’s reports:

Verify Bank’s Checkbook Balance:

Ø      Change Existing Check Record (Sub-task 2)

Ø      Optional TRX # Type: #7 – Bank’s Checkbook Balance

Verify that field 02 (Trx date) is dated the first day of the month that is being reconciled. If the date is wrong, correct it.

Verify that field 06 (Amount) is equal to the previous month’s bank ending balance. If amount is wrong, correct it.

 

Verify The Checkbook Balance:

Ø      Change Existing Check Record (Sub-task 2)

Ø      Optional TRX # Type: #6 – Your Checkbook Balance

Verify that field 02 (Trx date) is dated the first day of the month being reconciled.  If not, correct it.

Find the saved report printed when the previous month was reconciled.  This report should be marked, for example:  July 20xx, Bank Statement Balance (with the “month” being the “previous month”).  The CHECKBOOK BAL: on the report should be the same as the Optional TRX #6 dated the first day of the first month.

By taking the amount in #7-Bank’s Checkbook Balance and add in the uncleared deposits, and subtract the uncleared checks it will equal the amount in #6Your Checkbook Balance.

If the #6-Your Checkbook Balance is incorrect, check for wrong amount keyed in or check to see if last month truly did balance. If the amount was entered in wrong, make the correction in Sub-task 2. Note: if last month didn’t balance, go back and balance it first before continuing.

 

Compare:

 

Discrepancies:

 

Run Report Again:

Print a new checking account report – use Sub-task 4. The starting date should be the first day of the month. The ending date should be the last day of the month. This report should have zero "Out of Balance". If there is an amount, go back and repeat the steps above.

 

 

If the NEW BANK BALANCE does NOT EQUAL the BANK STATEMENT use the following instructions:

1.  Be sure the report was run using the correct date range.

·         Starting date:  Should always be the same date as the “last bank and checkbook balances” from the computer (can be found in 3/32/5 – Display Current Checking Status).

·         Ending date:  The last day of the month being balanced.

EXAMPLE:  If January is being balanced, and the checkbook and bank balances in the computer are dated 01/01/xx, the beginning date of the report should be 01/01/xx.

2.  Look for an amount that is equal to the amount you are off.

3.  Check all the miscellaneous charges and additions. Make sure they are all dated correctly, for the correct amount and cleared correctly.

4.  Check the "ACCOUNT REDUCTION".  This should equal the "debits" on the bank statement. The debits on the bank statement are the checks and charges.

·        If the "ACCOUNT REDUCTION" is less than the "debits" on the bank statement, then there is a check or charge that was not cleared.

·        If the "ACCOUNT REDUCTION" is more than the "debits" on the bank statement, then a check or charge was cleared that should not have been cleared.

5.Check the "ADDED TO ACCOUNT". This should equal the "credits" on the bank statement. The credits on the bank statement are the deposits.

·        If the "ADDED TO ACCOUNT" is less than the "credits" on the bank statement, then there is a deposit that was not cleared.

·        If the "ADDED TO ACCOUNT" is more than the "credits" on the bank statement, then a deposit was cleared that should not have been cleared.

NOTE:  Most of the time, actually take the computer printout and put it next to the bank statement, and very carefully, check off each transaction.  Make sure each one on the bank statement is cleared on the computer printout and make sure it is for the correct amount.   

 

 

CHECK CLEARED BANK IN PREVIOUS MONTH

SENERIO:  January 31, an “Immediate check” #501 for $302.99 is printed the last day of the month because of a COD.  The vendor goes directly to the bank and cashes it.  A/P Month End Balancing is finished, however check #501 has not been vouchered through the system.  The check (#501) gets vouchered on the first day of the new month (February 1).  Then a week later the January bank statement arrives.  The check cleared the bank the last day of the previous month (January 31).  It is now in the computer with a check date of the first day of the new month (February 1).  If this check is cleared with a January 31 date, you will be “OUT OF BALANCE”.  This is what must be done:

1.      Make sure check #501 for $301.99 dated February 1, is uncleared.

2.      In AP, Task 20, Subtask 1 (Enter New Check Record), enter a type 5=Lost check/redeposit, with a date of February 1, for $302.99.  Leave it uncleared.

3.      In AP, Task 20, Subtask 1 (Enter New Check Record), enter a type 3=Bad check/CC, with a January 31 date for $302.99. Put in a 01/31/xx clearing date.

4.      Put a note in with the January check stubs explaining the “$302.99 type3=Bad check/CC”.

5.      At this point, you should now be able to balance to the January 31 bank statement balance. 

6.      Put a note in the February reconciliation folder explaining the “$302.99 type 5=Lost check/redeposit”. 

7.      Next month when reconciling to the February bank statement, clear check #501 and the “type 5=Lost check/redeposit”.