Calculating the Book Balance

The calculated book balance amount on the Bank Reconciliation Report is calculated automatically by the system. The calculation takes the amount in the Current Balance field in Bank Code Maintenance and either subtracts or adds all documents dated after the ending date on the Bank Reconciliation Report. The adjusted bank balance amount is calculated by taking the amount entered in the Statement Ending Balance field in Reconcile Bank, adding all deposits in transit, subtracting or adding all adjustments, and subtracting all outstanding checks.

When the difference between the calculated book balance amount and the adjusted bank balance amount equals zero, compare the calculated book balance amount to your general ledger for the current period-ending date. If these two figures do not agree, create the transactions in Check, Deposit and Adjustment Entry, Bank Reconciliation Check Entry, or Bank Reconciliation Deposit and Adjustment Entry, select the Select For G/L Posting check box, and print and update the Bank Reconciliation Transaction Register.

If an adjustment is entered in the Bank Reconciliation module, this adjustment must be posted to the General Ledger module, so that the two modules balance. For the same reason, if adjustments are made using General Journal Entry or Transaction Journal Entry in the General Ledger module, and the General Ledger module is not integrated with the Bank Reconciliation module, the transactions must also be recorded in the Bank Reconciliation module.

For more information, see Adjust an Out-of-Balance Conditions.