| □ | The task that no one likes (except perhaps for that super detail-oriented person in the Accounting Department), but the one that really has to be done on a regular basis, is Bank Reconciliation. |
| • | On the Main Menu, Select File and Choose the Accounts Payable sub-menu, then Click Bank Reconciliation. |
Bank Reconciliation Form with sample data
| □ | Understanding the Bank Reconciliation Form: |
| • | The Bank Reconciliation dialog (shown above) has two labeled Sections at the top; and a set of Transaction Lists of Payments and Deposits (populated based on the specified Statement Date) below them. |
1. Statement Info section - In this section, you will Select the Bank Account that is to be Reconciled, view the Amount of the Last Reconciled Balance, and enter the Statement Balance of the Bank Statement which you are reconciling.
Bank Reconciliation Form - Statement Info
| o | Use the Drop-Down Selection List to Select the Bank whose account you want to Reconcile. |
| ▪ | Last Reconciled Balance - This field displays the Amount of the Last Reconciled Balance - which cannot be modified. |
| o | Initially this Amount is set to $0.00. |
| o | Once you have completed a Reconciliation, the Amount will be updated by the system to reflect this Bank Account's Reconciled Balance. |
| ▪ | Statement Balance - Enter the current Statement's Balance (the one on the Bank Statement that you are about to Reconcile). |
| ▪ | Statement Date - Enter the Closing Date of the Bank Statement that is being Reconciled using the Drop-Down Date Selection Box . |
| ▪ | Show Outstanding Payments and Credits - Check this box to include all of the outstanding payments and deposits in the Payments and Deposits lists. |
| ▪ | Refresh - Once the Statement Date is entered, Click the Refresh button to update the contents of the Transaction List. |
2. Reconcile section - In this section, view the current financial information and access the Reconcile Now button.
Bank Reconciliation Form - Reconcile section
| ◆ | On Statement - This is the net difference Amount between the Last Reconciled Balance and the Statement Balance (specified in the 1. Statement Info section above) and indicates the net value of all Transactions reported on the Bank Statement. |
| o | This Amount may be less than, equal to, or greater than the Last Reconciled Balance, based on whether Payments and other fees and charges exceeded Receipts and interest earnings and any other credits, or visa versa. |
| ◆ | Payments - This is the net sum Amount of each of Payment Transactions that have a Check in the Reconcile field (based on the Statement Date selected). |
| ◆ | Deposits - This is the net sum Amount of each of Receipt Transactions that have a Check in the Reconcile field (based on the Statement Date selected). |
| ◆ | Difference - This is the net difference between the On Statement Amount and the net value of the Checked Payments and Deposits Amounts. |
| o | If these Checked Payments and Deposits Amounts are greater than the On Statement Amount: |
| i. | The Difference Amount shown here will be displayed as a negative value. |
| ii. | This indicates that the On Statement Amount is less than the net value of the Checked Payments and Deposits Amounts |
| o | If these Checked Payments and Deposits Amounts is less than the On Statement Amount: |
| i. | The Difference Amount shown here will be displayed as a positive value |
| ii. | This indicates that the On Statement Amount is greater than the net value of the Checked Payments and Deposits Amounts |
| ◆ | Reconciliation - The goal is to have the net value of the Checked Payments and Deposits Amounts equal to the On Statement Amount - the Difference being $0.00 - thus indicating that you have properly Reconciled this Bank Statement. |
| • | Reconcile Now - Click this button after you have Reconciled the On Statement Amount with the Selected Amount on this Bank Statement. |
| ▪ | See "Reconciling a Bank Statement" below for more detailed information. |
| • | Transaction Lists - There are two Transaction Lists immediately below the Statement Info and Reconciliation Sections on the Bank Reconciliation Form: |
1. Payments - Lists all of the unreconciled Payment Transactions which were posted on or before the Statement Date entered above.
Payments Transaction List
| • | There are 5 columns of data provided in the Payments Transaction List. |
| 1. | Reconcile - The Check box used to identify a Transaction record within the list that has been Reconciled by the User. |
| 2. | Date Of Event - The Transaction Date of each record. |
| 3. | Batch # - This column will be empty for Payments |
| 4. | Description - A brief Description of the type of this Transaction. |
| 5. | Payment - The Amount of this Payment record. |
| ▪ | Each of these columns may be used to Sort the Transaction List data by Clicking that column's Header Name. |
| o | The current order of the Transaction List is indicated by the Icon next to the Header Name of the column that is determining the order. |
| o | The first Click on a different Header Name sets the Sorting Order to Descending based on the contents if the column of that selected Header Name. |
| o | Click the same Header Name a second time to set the Sorting Order to Ascending. |
| o | When this Icon (see mouse pointer immediately above) is next to a Header Name, it means that this is the column that is determining the Sorting Order of the data and the arrow indicates the direction (ascending or descending) of that Sorting Order. |
2. Deposits - Lists all of the unreconciled Deposit Transactions which were posted on or before the Statement Date entered above.
Receipts Transaction List
| • | There are 5 columns of data provided in the Deposits Transaction List. |
| 1. | Reconcile - The Check box used to identify a Transaction record within the list that has been Reconciled by the User. |
| 2. | Date Of Event - The Transaction Date of each record. |
| 3. | Batch # - The Batch Number assigned to a set of Receipts. |
| 4. | Description - A brief Description of the type of this Transaction. |
| 5. | Deposit - The Amount of a Deposit representing a Batch of Receipt records. |
| ▪ | Each of these columns may be used to Sort the Transaction List data by Clicking that column's Header Name. |
| o | The current order of the Transaction List is indicated by the Icon next to the Header Name of the column that is determining the order. |
| o | The first Click on a different Header Name sets the Sorting Order to Descending based on the contents if the column of that selected Header Name. |
| o | Click the same Header Name a second time to set the Sorting Order to Ascending. |
| o | When this Icon (see mouse pointer immediately above) is next to a Header Name, it means that this is the column that is determining the Sorting Order of the data and the arrow indicates the direction (ascending or descending) of that Sorting Order. |
| • | The Category of each Transaction Item is identified by the column Header named "Description" |
| • | Each of these various Types of Transactions are explained below. |
| ▪ | Bank Fees - (A Payment Transaction Category) Generally Posted using the Bank Transactions Form to identify those charges and fees assessed by financial institutions for bank account related services and other management related fees (stop payment orders, bounce checks, letters of credit, etc.) that appear on your Bank Statement, and are not separately entered as a Bill. |
| ▪ | Employee Payments - (A Payment Transaction Category) Generally Posted using the Bank Transactions Form to identify direct loans made to Employees. |
| ▪ | Employee Receipts - (A Receipt Transaction Category) Generally Posted using the Bank Transactions Form to identify repayments from an Employees of previously funded direct loans. |
| ▪ | Interest Earned - (A Receipt Transaction Category) Generally Posted using the Bank Transactions Form to identify Monies earned from on-hand Bank Deposits, Money Market Accounts, and other interest bearing Financial Instruments (savings certificates, savings bonds, etc.). |
| ▪ | Payments - (A Payment Transaction Category) Show previously Posted Payments. |
| ▪ | Receipts - (A Receipt Transaction Category) Show previously Posted Receipts. |
| ▪ | Refunds - (A Receipt Transaction Category but shown as a negative value) Show previously Posted Refunds. |
| ▪ | Paychecks - (A Payment Transaction Category) Imported Payroll data shows the individual Paychecks issued by a Payroll Processor and cashed by your Employees. |
| ▪ | Deposit Slip - (A Receipt Transaction Category) Click the Drill Down feature's Plus Box to open the Deposit Slip Detail section. |
| • | Payments Transaction Drill-Down -  The Transaction Detail for any Payment may be viewed: |
| • | Click the Plus Box (on the left of the Payments Transaction List) of a selected Line Item. |
Payments Transaction List - Drill-Down Detail Pop-Up Box
| ▪ | The Plus Box turns into a Minus Box when it is Clicked. |
| • | The Details for the selected Payments Transaction will be displayed in a Detail Pop-Up box. |
Payment Detail Pop-Up Box - Open Form Icon
| ▪ | Double-Click the Special Icon on the selected Payment Detail Pop-Up to open the associated Form where this Transaction was created. |
Associated Form from which Payment Transaction was created
| ▪ | Click the Minus Box to Close the Drill-Down Pop-Up box. |
| • | Deposits Transaction Drill-Down - The Transaction Detail for any Deposit may be viewed: |
| • | Click the Plus Box (on the left of the Deposits Transaction List) of a selected Line Item. |
Deposits Transaction List - Drill-Down Detail Pop-Up Box
| ▪ | The Plus Box turns into a Minus Box when it is Clicked. |
| • | The Details for the selected Deposits Transaction will be displayed in a Detail Pop-Up box. |
Deposit Detail Pop-Up Box - Open Form Icon
| ▪ | Double-Click the Special Icon on the selected Deposit Detail Pop-Up to open the associated Form where this Transaction was created. |
Associated Form from which Receipt Transaction was created
| ▪ | Click the Minus Box to Close the Drill-Down Pop-Up box. |
| • | Shortcut buttons - You may Click a Shortcut button to Check or Uncheck All Payments and/or All Receipts in the Transactions Lists |
| • | Select All - Click the  Icon to insert a Check into the Reconcile field of all the specified Transactions. |
| • | Unselect All - Click the  Icon to remove all Checks from the Reconcile fields for all the specified Transactions. |
| □ | Reconciling a Bank Statement: |
The Drill Down feature is always available and may be used to properly validate (Reconcile) each Transaction Item Type.
| ▪ | Compare the list of Receipts and the total to the Deposit Slip that has this Batch Number assigned to it. |
| ▪ | Any Receipt record may be examined by Double-Clicking the Icon on the left of that Drill Down line item |
| ▪ | Confirm that this Deposit Total also matches its corresponding entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Deposit Slip Detail section. |
| ▪ | Check the Reconcile Box if this Deposit Slip Transaction Item is correct. |
| • | Check # - Click the Drill Down feature's Plus Box to open the Check Payment Detail section. |
Check # Transaction Item with Check Payment Detail section displayed
| ▪ | Note the Check Number and the Payment Total. |
| ▪ | Compare the list of Payments for the Bills that were Paid with the corresponding paper backup to ensure this is correct. |
| ▪ | Any Payment record may be examined by Double-Clicking the Icon on the left of that line item (see mouse pointer in the illustration above). |
| ▪ | Confirm that this Payment Total also matches its corresponding entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Check Payment Detail section. |
| ▪ | Check the Reconcile Box if this Check # Transaction Item is correct. |
| • | Employee Payment - This Type of Transaction Item represents the funding of a direct loan to an Employee that was entered previously using the Bank Transactions Form. |
Employee Payment Detail section
| ▪ | Click the Drill Down feature's Plus Box to open the Employee Payment Detail section. |
| ▪ | Confirm that also matches its corresponding entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Employee Payment Detail section. |
| ▪ | Check the Reconcile Box if this Employee Payment Transaction Item is correct. |
| • | Employee Receipt - This Type of Transaction Item represents a previously entered Bank Transactions identifying a repayment from an Employee of a previously funded direct loan. |
Employee Receipt Detail section
| ▪ | Click the Drill Down feature's Plus Box to open the Employee Receipt Detail section. |
| ▪ | Confirm that this Deposit Total also matches its corresponding entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Employee Receipt Detail section. |
| ▪ | Check the Reconcile Box if this Employee Receipt Transaction Item is correct. |
| • | Bank Fee - This Type of Transaction Item represents charges and fees assessed by the Selected Bank (or other financial institution). |
| ▪ | These will appear on the Bank Statement and be identified as various bank account related services and/or management fees (stop payment orders, bounce checks, letters of credit, monthly service fee, etc.). |
| ▪ | These type of charges and fees should be entered using the Bank Transactions Form instead entering them as a Bill. |
| ▪ | If there are charges and fees on the Bank Statement that have not been entered in the system, use the Bank Transactions Form to do so. |
Bank Fees Detail section
| ▪ | Click the Drill Down feature's Plus Box to open the Bank Fee Detail section. |
| ▪ | Confirm that this Payment Total also matches its corresponding entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Bank Fee Detail section. |
| ▪ | Check the Reconcile Box if this Bank Fee Transaction Item is correct. |
| • | Bank Transfer - This Type of Transaction Item identifies a transfer of monies from the selected Bank account to another Bank (or visa versa) entered using the Bank Transactions Form. |
Bank Transfer Detail section
| ▪ | Click the Drill Down feature's Plus Box to open the Bank Transfer Detail section. |
| ▪ | Confirm that this Deposit Total also matches its corresponding Debit or Credit entry on the Bank Statement. |
| ▪ | Click the Drill Down feature's Minus Box to Close the Bank Transfer Detail section. |
| ▪ | Check the Reconcile Box if this Bank Transfer Transaction Item is correct. |
| • | Follow this (Drill Down, View, Confirm, Reconcile) pattern for validating any other type(s) of Transaction Item(s) in the Transaction List section. |
| □ | Completing the Bank Reconciliation Process: |
| • | The goal is to have the Amount of the Selected items - those Checked a Reconciled - be equal to the On Statement Amount - which means that the Difference Amount shown will be $0.00. |
| • | This "$0.00 Difference Amount" indicates that you have properly Reconciled this Bank Statement by identifying and then Checking each Transaction Item on the Transaction List which also appears on this Bank Statement. |
| • | There (usually) will be additional Transaction Items on the Transaction List that remain after establishing a $0.00 Difference Amount situation. |
| • | This is because certain Transaction Items (usually for various Payments and/or Deposits) that were Posted within MKMS, have not yet been Posted to the Bank Statement that was received from the Selected Bank, when that Bank Statement was printed. |
| • | These "left-over" Transactions will be automatically carried forward for Reconciliation in the following month. |
| • | There may also be cases where one or more special Bank Transactions are not in the Transaction List but are listed on the Bank Statement. |
| • | This is typically result of new Interest Earnings or Credits, and/or new Finance or Bank Charges which were incurred, but have not yet been entered as Bank Transactions. |
| • | In this case, Click the Finish Later button to save your work and to Close the Bank Reconciliation Form. |
| • | Open the Bank Transactions Form and enter each of these missing Transactions - paying special attention to the Date of those Transactions |
| • | Then, return to the Bank Reconciliation Form to complete the Reconciliation process by Checking these new Transactions and Confirming that a $0.00 Difference Amount situation does now exist. |
| • | Click the Reconcile Now button to proceed with the Reconciliation process. |
| • | Confirm that you do want to Reconcile Now. |
| • | All Transaction Items which have been Reconciled will be removed from the Transaction List. |
| • | The Bank Reconciliation Summary report will be displayed automatically. |
| ▪ | This Bank Reconciliation Summary report is stored automatically. |
| ▪ | It may be viewed at a later time by Selecting the Bank Reconciliation History tab on the Bank Maintenance Form. |
Bank Reconciliation Summary
| ▪ | Click the Print Icon to open the Windows® Print dialog where a copy of the report may be sent to a selected Printer, or Printed to a File. |
| • | The Last Reconciled Balance will be updated as was indicated in the Reconcile Now Confirmation box. |
