Bank Reconciliation - ERP Software

Bank Reconciliation User’s Guide JOBSCOPE

JOBSCOPE Bank Reconciliation Copyright, Jobscope, LLC, 1996 - 2011 JOBSCOPE Information in this document is subject to change without notice. Jobscope LLC makes no warranty of any kind regarding this material, and shall not be held liable for errors contained herein or for damages resulting from the use and performance of this material. The information in this document is protected by copyright. No part of this manual may be reproduced in any form without the expressed written consent of Jobscope LLC.

Bank Reconciliation Table of Contents Bank Reconciliation . 2 Configuration Settings . 2 User Bank . 3 Payment Code . 5 Performing the Bank Reconciliation . 6 Adding Entries for Bank Fees . 12 Transfers . 14 There is a box on the Modify Bank Codes screen labelled . 14 Reports . 14 JOBSCOPE Page 1

Bank Reconciliation Bank Reconciliation Bank Reconciliation is the process of verifying that the amounts on the bank statement are consistent or compatible with the amounts in your company's Cash account in the general ledger and vice versa. To do this, the withdrawals from the bank account (checks, fees, and other payments) and the deposits into the bank account must be marked as having been processed by the bank (reconciled). Then, the withdrawals and deposits not reconciled can be subtracted and added, respectively, to the balance shown on the statement and compared with the appropriate cash account in the general ledger. The Bank Reconciliation module in Jobscope does the part about marking the withdrawals and deposits as reconciled. There is also an Outstanding Checks report in Accounts Payable which will list and total the outstanding checks. In Accounts Receivable, there is a report which will list deposits as well. The Accounts Payable User Guide describes the process of creating the withdrawals (checks, ACH payments, etc.). This module must be online before beginning bank reconciliation, or you won’t have the withdrawals side to reconcile. Deposits are recorded in the Reconcile Payments mode of the Accounts Receivable module. This is described in the Accounts Receivable User Guide. Configuration Settings After you have Accounts Payable and the Reconcile Payments mode of Accounts Receivable online, the only setup required is the Next Bank Reconciliation Number and the User Bank information. The next sequentially assigned bank reconciliation number needs to be setup in System Utilities, System Configuration, Financials, Bank Reconciliation. JOBSCOPE Page 2

Bank Reconciliation User Bank If you will be using the ACH (Automated Clearing House) functionality to electronically pay, then you will need to make a User Bank entry for each bank account from which you will make ACH transactions. To get to the User Bank screen, click on System Management, System Utilities, Financials, Accounts Payable, User Bank. The User Bank screen displays. The Jobscope user’s bank routing transit number and account must be entered for each bank from which ACH transactions will be made. All the pertinent fields are described below and all are entered via the User Bank screen in System Utilities under the Financials / Accounts Payable menu. The respective bank will be able to provide the values for these fields. JOBSCOPE Page 3

Bank Reconciliation Bank Code – Bank Codes are entered and maintained in the Modify Bank Codes selection. For ACH, you need an entry in this table for each bank code. Bank Routing Id - Transit Routing Number Bank User Id – The id number assigned by the bank and entered in Table 3201 Bank Account - Account Number to be debited Type of Account – You may use this to define the type of account. It is not used in the processing Company Code – Select the company code from Table 0001 entries in the drop down Bank Name – Enter the bank account name ACH Related Information: Destination Name - Identifies the bank to which the ACH file will be sent Immediate Origin - Bank-assigned number identifying your company Originating DFI - Bank-assigned number identifying origin of the transactions Service Class Code - Identifies type of transactions – debit (225), credit (220), or both (200) Pad File to Full Block - Adds records to end of file to fill last 10-record block. You will normally check this on Each ACH transaction will be recorded in the checks table with an assigned transaction number which is then recorded on each invoice record being paid, the same as if a check had been generated. The number for the transaction will be assigned based on the “next ACH transaction” number assigned via the Modify Bank Codes screen in System Utilities under the Operations menu. Whereas check numbers can be 6 digits, ACH transactions are limited to 5 digits. This is because the number is prefixed by the letter “A” to distinguish it as an ACH transaction. JOBSCOPE Page 4

Bank Reconciliation Payment Code You will need a special “BA” payment code in table 7004. If you don’t set up the BA code, you will get this message if you try to add adjustment entries on the Bank Reconciliation screen. JOBSCOPE Page 5

Bank Reconciliation Performing the Bank Reconciliation On the main Jobscope window, click on Financial Accounting, then Bank Reconciliation. The program will open with the toolbar below, and the Bank Reconciliation screen. If the screen does not display, click on the Perform Reconciliation selection on the toolbar. This is the Bank Reconciliation screen. Begin by selecting a Bank Code from the dropdown. The Bank name and account number display. JOBSCOPE Page 6

Bank Reconciliation Enter the Statement Period date ranges. These dates will be saved in the Reconciliation record. In the Statement Info area, enter the Beginning Balance, Ending Balance, Total Deposits, and Total Withdrawals amounts from the statement. The next step is to retrieve the deposits and withdrawals to reconcile. This area is near the middle of the screen, just above the grid. Select the earliest date that you want to retrieve withdrawals and deposits, and click on the Retrieve Data button. The retrieved data will display in the grid. They won’t have the checkmarks when they first display. JOBSCOPE Page 7

Bank Reconciliation You can double click on an entry to see more detail. Double clicking on the first withdrawal in the grid displays the Bank Reconciliation Drill Down screen. Similarly, a deposit looks like this. JOBSCOPE Page 8

Bank Reconciliation To mark withdrawals and deposits as reconciled, check the box beside the item. The system will keep a running total of the total amounts checked at the bottom of the grid. You can use the Mark Checks As Cleared fields to enter an uninterrupted check range, and the system will mark all checks in the range as cleared in the grid, so that you will not have to mark them one at a time. JOBSCOPE Page 9

Bank Reconciliation When you have everything set, click on the Finish button ( ) at the bottom of the screen. If everything is okay, you will get this message. If there are problems, you will get one of the following two messages. The other one looks like this. In either case, you can click on OK to save the reconciliation in an Incomplete status. The reconciliation will have to be completed before a new reconciliation can be started. If you click on OK, you will get this message. JOBSCOPE Page 10

Bank Reconciliation When you click on OK, the screen will go blank. To get back in, click on Perform Reconciliation on the toolbar. If you have an incomplete reconciliation, you will get this message when you open the Bank Reconciliation module. Click on OK and the incomplete reconciliation will display. JOBSCOPE Page 11

Bank Reconciliation Adding Entries for Bank Fees The bank statement may list fees or other charges or credits for which you don’t have a withdrawal or deposit record in your system. You can create a record for these items by clicking on either the Add Withdrawal ( Deposit ( the screen. ) button to add a withdrawal, like a bank fee or other charge, or the Add ) button to add a deposit, like interest. These buttons are at the bottom left of If you click on Add Withdrawal, the Withdrawal Adjustments from Bank Reconciliation screen displays. The system will write BA into the Type Payment field and the Accounts for the BA bank code to the Credit Account and Debit Account fields. You can change the debit account if you need to. The amount should be entered as a positive amount. The system knows this is a withdrawal, and it will figure out which account will be debited or credited. These entries are stored in the database as bank deposits. JOBSCOPE Page 12

Bank Reconciliation If you click on Add Deposit, the Deposit Adjustments from Bank Reconciliation screen displays. The system will write BA into the Type Payment field and the Accounts for the BA bank code to the Credit Account and Debit Account fields. You can change the debit account if you need to. The amount should be entered as a positive amount. The system knows this is a deposit, and it will figure out which account will be debited or credited. JOBSCOPE Page 13

Bank Reconciliation Transfers There is a box on the Modify Bank Codes screen labelled Not Used for Payments. If the Not Used for Payments box is checked, then the bank code will not display in the dropdown for bank code selection in the Accounts Payable programs. If this box is checked, the system will allow all the accounts except the cash account to be blank. You would use the Not Used for Payments function only if you are using the Bank Reconciliation function. Take the case in which you have an account which you use as a reserve for your main operating account. You don’t write checks on it, but you do make transfers to and from that account and your main operating account. These transfers are represented by journal entries which you make in Batches mode of the General Ledger module. When you are entering a batch line item, the system checks to see if the account is the cash account for a bank code. If it is, then a check box labelled Post to Bank Reconciliation will display, and it will default to checked. Therefore, these journal entries will appear on the bank reconciliation screen. With Not Used for Payments checked, the users will not be able to inadvertently select this bank code for an invoice. Reports You can get a listing of Bank Reconciliations in the system by clicking on the Reports selection on the toolbar and then Bank Reconciliation. September 6, 2016 JOBSCOPE Page 14

Bank Reconciliation JOBSCOPE Page 4 Bank Code - Bank Codes are entered and maintained in the Modify Bank Codes selection. For ACH, you need an entry in this table for each bank code. Bank Routing Id - Transit Routing Number Bank User Id - The id number assigned by the bank and entered in Table 3201 Bank Account - Account Number to be debited .