The article and video provide a walkthrough of the Bank Reconciliation screen. Bank Reconciliation can be used to ensure all transactions on your bank statement have been entered and cleared in EMDECS.
This article is only applicable to users with the EMDECS full accounting system.
Bank Reconciliation Walkthrough Video
Click on the square at the bottom right-hand corner to view the video in full screen mode.
Step-by-Step Bank Reconciliation Walkthrough
Before reconciliation, ensure that you have entered all customer payments, bank deposits, and payments to vendors for the period, and that all invoices up to your bank statement date have been journalized.
It is also recommended to close periods prior to your bank reconciliation, in case you need to delete, make changes to, or re-journalize existing batches.
Complete the following steps to reconcile your bank statements in EMDECS:
- Open the Financials menu and select Bank Reconciliation.
- The Bank Reconciliation screen opens with a list of existing bank statements. The list can be filtered by bank account and using the Show Un-Finalized Only checkbox. Clicking on a statement date will open the bank statement details.
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On the right-hand side, buttons are available to Delete, Un-Finalize, and Print bank statements.
Un-Finalize and Delete are only available for most recent bank reconciliation. If changes are required, bank reconciliations must be un-finalized and/or deleted in reverse chronological order.. The Delete button is only available if they are no other bank reconciliations in the future. Reconciliations create a "butterfly effect." If changes could be made to a statement 6 months ago, none of the statements after it would be correct. All subsequent statements need to be deleted then re-entered from scratch after correcting the statement with errors. - Click Add New Reconciliation to enter a new statement.
- Select a bank account from the drop-down list, enter the statement date, then click Create Statement.
Bank statements must be added and finalized in sequential order. Outstanding amounts carry forward from one statement to the next. - A pop-up window will display all outstanding transactions that hit your bank GL account in EMDECS. Compare the transactions with your bank statement, and put a check in the Clear checkbox next to transactions that are listed on your statement. This ensures the transaction is cleared and will not carry over to the next month / statement. Leave unchecked for any transactions that have not yet appeared on your statement. Click Save / Exit when done.
- Transactions that appear on your bank statement that are not recorded in EMDECS (i.e. payroll, banking fees, or any other transactions for other areas of your business) can be added to EMDECS by posting a manual journal entry. Click Add in the Statement Manual Entries section to create a new manual journal entry.
- A Manual Journal Entry screen will pop-up. The GL account, description, and division must be filled in as required fields, then enter the appropriate debit / credit amount.
The Entry Control Options in the bottom pane are optional - unless your system has been configured to require specific fields. These may be useful if you do reporting or analysis of manual journal entries by specific locations, warehouses, etc.
Click Save / Exit at the bottom of the screen to save the journal entry. - Manual entries are added to a list in the bottom right-hand side pane.
- After you are done clearing items and adding manual entries, click the Finalize button on the right-hand side to finalize your bank reconciliation.