This program is used to record all transactions affecting the bank accounts on either the General Ledger or Accounts Payable. This is part of manual bank reconciliation. A Bank Statement Entry list is printed on completion of Bank Statement Page Entry.
Create a bank statement entry
During Bank Statement Entry, the type of Bank reconciliation group selected determines the entry requirements in the Bank key field. The Bank reconciliation group refers to the bank entry transaction type. If for example, Bank reconciliation group is ‘1’ for cheques then the entry required in the Bank key field will be a cheque number.
When entering a deposit listed on the bank statement, entry is made to the bank file through Accounts Receivable (may be cash entry, etc) and is automatically checked against the General Ledger via the bank clearing option. Each deposit is checked and marked off, those remaining are ones that do not match up. This example describes how to enter a deposit or cheque.
- In the menu expand, Base Modules > General Ledger > Other > Bank Reconciliation > Manual Bank Reconciliation and then double-click GL Bank Statement Entry. GLE030 Bank Statement Entry panel appears.
| Field | Description |
| Company | This field defaults to your company but may be overridden if necessary. |
| Bank GL acc | This is account which is debited when Bank Charges, Miscellaneous Charges and Deposits are entered via bank statement entry. |
| Period | The current accounting period defaults. Posting to a previous period or future period is possible by entering the General Ledger security password. |
| Security |
A security password may be entered to bypass the General Ledger safeguards that prevent duplicate journal numbers as well as postings to a Period other than the current Period. A separate password is required for posting to previous period as specified in control file TMSGL/SEC. The error message Invalid security code will display if the period entered is not the current period. The error message Duplicate journal in period…Valid security rqd displays if a journal has already been posted and no Security password has been entered. |
| Page no | The number of the bank statement page about to be processed is entered. |
| Opening bal | The opening balance according to bank statement page being processed is entered. Indicate whether this balance is credit or overdraft using CR or OD. |
| Closing bal | This is the closing balance according to bank statement page being processed. Indicate whether this balance is credit or overdraft using CR or OD. |
- Enter the above header information, as necessary.
- Click OK to confirm the header information. GLE030 Bank Statement Entry detail panel appears.
| Option | Description |
| Text | Accesses APM909 Journal Detail Text to add information about particular journal entry. |
| Field | Description |
| Date | Transaction date as per the statement. If the date is same for next entries, the date does not have to be repeated for each of these transactions. Only enter the date when it is not same as previous date entry. This can be cheque date in case of cheque entry. |
| Group code | Group code relating to the transactions being entered from the bank statement. Entry of a predefined bank reconciliation group code defaults a specific general ledger account. This group code determines the transaction type. 1=Cheque, 2=Deposit, 3=Bank charges, 4=Miscellaneous charges, 5=Electronic payments, 6=Direct payments. TMSGL/BNK-JTIF defines what type of journal must be created for a bank reconciliation group code. |
| Bank key | Depending upon the group code entered, enter cheque number, journal number or deposit reference. No entry is required when entering a deposit or bank charge. The bank key is to be consistent with journal numbers and therefore the format map GL-JNLN is used to convert user input so that matching occurs correctly. |
| Amount | Enter the amount of the transaction according to the bank statement. For credits do not use minus sign as the next field indicates a debit or credit balance. |
| DC | Indicate whether the amount entered is a debit or credit as per the bank statement. |
| Account | The general ledger account number may default. For a cheque, no general ledger account is required as the bank account is updated when the cheque is processed in AP. Deposits should be setup with a bank clearing general ledger account to ensure the posting from accounts receivable is reversed. As part of bank reconciliation process, the balance of the clearing account should determine the value of unpresented deposits. |
| Narrative |
There is a facility for notes or explanations for each accounting entry. Enter any information relating to the transaction. For example if the transaction was a Misc DR/CR, and the direct debit was for salaries, the notation could be Salaries October. Entry of the particulars can be mandatory depending on the set up in TMSGL/PTCL-LNK. For example if the Control Key is #IM a item can be entered. If an account number has been listed in this control file an entry in particulars will be mandatory if that account has been selected. |
| Remaining amount | The difference between the opening and closing balance is calculated and displayed on the panel with the header information. The difference is reduced and/or increased according to the entries made from the bank statement. The bank statement page must balance before it can be filed. Only when the remaining amount is zero, can the bank statement be filed and the message “Enter to Confirm” displays. |
- Enter the above transaction details, as necessary.
- Click OK to confirm entry. Bank statement is generated. A bank statement entry list prints automatically on completion of bank statement page entry.
The closing balance is calculated by totaling the statement entries and adding this total to the Opening balance. The result is compared to the Closing balance entered from the bank statement. Discrepancies will be highlighted.
The same field requirements are used when entering deposits, cheque, miscellaneous debits and credits, electronic cash payments, electronic cash receipts, Amex transfer and bank charges.
When entering a cheque from the bank statement, the cheque you draw from the bank through Accounts Payable automatically checks against the general ledger by matching up the cheque number. Cancelled cheques, cheques that have bounced or voided cheques can be entered via the Accounts Payable option; the Payment Cycle. For cancelled cheques, select the Cancel Cheque entry and enter the Creditor code, Cheque number and Cheque amount. This flags entry on bank file as cancelled and leaves outstanding amounts against the customers to be paid.
When entering a refund from the bank statement, the refund amount paid to the customer from the bank through Accounts Payable is automatically checked against the General Ledger. An example of a refund is: A company leases out equipment and pays installments to the bank monthly. If the installments are to last for 18 months but the bank takes out an extra installment by mistake, they need to give you a refund.
When entering bank charges from the bank statement into the system such as government debit tax, FID interest and account keeping fees etc the bank charges amount is automatically entered into the General Ledger account. As an example enter accounting fees of $30.00
Making entry adjustments – when items are unmatched on your bank rec report or they are posted to different groups, it is possible to make ‘adjustment’ entries to the bank entries only.
To make correcting entries, enter a new statement for zero opening and zero closing, but make sure the page number of the transaction you are correcting is the same as your adjustment statement.
On the detail lines, enter the transaction exactly the same as you have done previously, except the amount you enter should be keyed in as a negative. The second line should be keyed in with the correction made. The most common corrections are to change the bank key or bank group.
If the correction is because of an amount discrepancy, you can correct by entering in three correcting lines. The first line should always to the reversing of the original line. The second will be the first correcting line for the amount of the GL transaction and the third line entered with the difference and journal directly against a bank fee account or small adjustment account.
Reverse bank statement entry
This function is useful if you have entered an amount into the wrong General Ledger account. You are able to remove the entry from the GL account and enter the amount in the correct account.
| Note | When reversing an entry, there is no need to enter an Opening balance or Closing balance. |
In the menu expand, Base Modules > General Ledger > Other > Bank Reconciliation > Manual Bank Reconciliation and then double-click GL Bank Statement Entry. GLE030 Bank Statement Entry panel appears.
- Enter the header information and click OK. GLE030 Bank Statement Entry detail panel appears.
| Field | Description |
| Gr | When reversing an entry select a miscellaneous group code type. |
| Amount | The amount of the entry to be reversed & re-allocated. |
| DC | C = credit against the original incorrect allocation and D = debit against the new allocation. |
| Account | On the first line of the transaction enter the account number to which the transaction was originally allocated. On the second line of the transaction enter the account to which the transaction should have been allocated. |
- Enter the above transaction details, as necessary.
- Click OK to confirm the selection. Selected entry is reversed. Bank statement is generated.
Add journal detail text
In the menu expand, Base Modules > General Ledger > Other > Bank Reconciliation > Manual Bank Reconciliation and then double-click GL Bank Statement Entry. GLE030 Bank Statement Entry panel appears.
- Enter the header information and click OK. GLE030 Bank Statement Entry detail panel appears.
- Select journal entry and right click option Text. APM909 Journal Detail Text panel appears. See APM909 Journal Detail Text for further information.
