Account Reconciliation

Introduction

1. The reconciliation of financial account transactions for a bank statement:

  • Receive a bank statement (paper or electronic).
  • Reconcile in the application transactions marked asdeposited/withdrawn not clearedin the system with the actual transactions on the bank statement. This process can be done manually by using the “Reconcile” option (one by one through the manual form) or by using the “Match Using Imported Bank Statement” option (Globally using a matching algorithm).

2. The manual reconciliation of financial account transactions for cash:

  • Close petty cash transactions
  • Using the application, reconcile transactions marked asdeposited/withdrawn not clearedin the system with the actual transactions, entering a cash difference where needed. This process can be done manually using the “Reconcile” option (one by one through the manual form).

Keep in mind that some processes, like creating the invoices that are the origin of the payments, are not described here. Please refer to the user manuals ‘Supplier Invoice to Payment’and ‘Customer Invoice to Cash’for the creation of the payments and the process up to the point of the status ‘deposited/withdrawn not cleared’.

Abstract Business Process

The abstractFinancial Account to Reconciliationis defined by the following business process diagram:

FinAccToRecBusProcScn.png

It consists of the following sub processes:

  • Read/Import Bank Statement or Cash
  • Compare to ERP Records
  • Reconcile(using automatic feature with the algorithm or manually through the form).

Roles Involved

The roles required to complete this process are:

  • Finance– this role fully manages banks, accounts and the bank statements

Configuration

Some configuration needs to be done before performing this process. Please refer to theConfiguration Manual.

Step by Step

Register Financial Account Transactions

TheFinancerole should be used. As described in theCollectionandSupplier Payment Managementuser manuals, the transactions related to a financial account can be found in theFinancial Management || Receivables and Payables || Transactions || Financial Accountwindow tabTransactions:

Reconcile01.png

Transactions can be added by pressing theAdd Transactionbutton (at the bottom). This will bring up a new window used to present payments (receivables and/or payables) that can be selected as new transactions in the given Financial Account:

Reconcile02.png

If payments are not yet present in the application, they can be created by pressing theAdd Paymentbutton.

Reconcile03.png

Also transactions using GL Items can be added with theAdd Transactionbutton:

Reconcile04.png

Bank feescan be added as transactions using theAdd Transactionbutton:

Reconcile05.png

Process Bank Statement

TheFinancerole should be used.

A bank statement is normally received in a paper or electronic format. Regardless, it is a list of outgoing and incoming payment transactions that your bank has recorded. Bank Statements can be imported in an electronic format using one of the existing Bank File Formats. All those Formats can be deployed through modules into the system, as per the configuration manual. The import of Bank Files can be done through theImport Bank Statementbutton inside the Transactions tab.

Reconcile06.png

Select theBank Fileto be imported and select the properFile Formatfrom the ones available (Previously installed). PressOKbutton.

Obviously this step will be skipped for cash transactions.

Reconcile

TheFinancerole should be used.

Bank Transactions

The objective of this step is to match the lines of the statement you received from the bank, with the list of transactions that the Openbravo ERP application has recorded as ‘not cleared’.

Use theMatch Using Imported Bank Statementbutton inside theTransactionstab. The matching algorithm will try to map existing transactions in the financial acount, with the transactions on the Bank Statement. Matches can be:

  1. Strong: The system has found a full match.
  2. Weak: Almost all the info coming from the Bank Statement matches the existing transaction. The system proposes that transaction as a match but the user has to clear it manually.

Reconcile07.png

This way, payments that have been selected will be included in this reconciliation. You can repeat the process of clicking theSavebutton as many times as necessary to include all necessary payments in the Reconciliation.Once all the pending lines of the bank statement have been matched, the reconciliation can be processed by clicking theReconcilebutton.

You can process a reconciliation against a bank statement which was previously imported and has unmatched bank statement lines.

Once the Reconciliation has been processed thepayment statusmoves toPayment Cleared.

Cash Transactions

For Cash transactions the reconciliation is done manually:

Use theReconcilebutton inside theTransactionstab.

Enter the balance of the cash for that particular cash account and flag the transactions to meet that amount:

Reconcile08.png

and click theReconcilebutton. The completion message will indicate the reconciliation number of the created reconciliation.

Once the Reconciliation has been processed thepayment statusmoves toPayment Cleared.

On the Payment Report you can display payments and their statuses:

201210paymentreconciliationselect.png

and filter the statusPayment Cleared:

Paymentreconciliationresult.png