What is the Journal Entry if there is Diff Amount in Manual Reconciliation?

[Former Member]

Hi Experts,

When i go to Banking -> Bank Statements and Reconciliation -> Manual Reconciliation for a particular Bank Account and give the Ending Balance and End Date, i select all the reconciled transactions as per the Bank Statement but, still there is a difference of some amount because of which i am unable to reconcile the same.

Example:

Cleared Book Balance: INR -7,000,000.00000

Statement Ending Balance: INR -3,100,000.00000

Difference: INR -3,800,000.00000

If i need to pass an Adjustment Entry, then what entry has to be made? My bank account will get affected but, which is the other account that has to be affected? Which accounts will be Debited and Credited? Do i need to pass another Journal Entry after the Reconciliation has been done to restore the previous uncleared balance?

Please give your valuable inputs as to what procedure needs to be followed in this regards.

Is there any document available in detail with scenarios or examples for using reconciliation in SAP B1 2005B?

Thanks and Regards,

Kaushal

[K_Pauquet · Accepted solution]

Hi Kaushal,

you really must try to find out where the difference comes from. In essence, the real life balance on your bank account should match the balance in your internal GL account for that bank account. If it doesn't, then there are transactions on the GL account that require investigation.

As always, the accountant must make the decision what offsetting account is to be used for adjustments, there are no guidelines for that.

All the best,

Kerstin

[Former Member · Accepted solution]

Hi Kerstine,

Thanks for your prompt response.

Actually, our client has moved from Tally to SAP last year from Apr '08. All the transactions prior to April has been recorded in Tally like, payments made through cheques in the month of March 08 that might have been realized in April and the cheques deposited by the client too might have been realized in the Month of April 08 and hence, there is a difference in the reconciliation. I need to make some adjustment journal entry but before i go ahead with that, i just wanted to seek some idea from the experts in this forum.

There are few entries in the External Bank Reconciliation window which is prior to April 08 and the balance of the same is showing in the "Cleared Book Balance:" when i select Manual Reconciliation. Hence, i am getting that difference when i reconcile with the bank statement.

I am not finding any documents related to External Reconciliation through which i can enhance my knowledge related to the same.

Will need to work on this scenario...will try my best to solve...

Thanks and Regards,

Kaushal