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author's profile photo Former Member
Former Member

Electronic bank reconciliation during the middle of the year

Hi

I got a scenario where my client is going to start Electronic bank reconciliation process. They were working in such a way for the past 4 years without reconciliation process(ie doing everything manually and updating).They got 3 accounts from the beginning main account,issue account,reciept account. Currently they are using only issue account and reciept account and arriving at the balance by the difference between these two accounts. They havent utilized there main account yet. So the balance in the main account is zero as of now. So inorder to start EBRS do i need to put an entry to bring the balance in main account so that i can start EBRS after that. Is this the correct process??.PLease help

Regards

Vipin

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 09, 2011 at 05:16 AM

    Hi

    If you want to do BRS you need balance in main account in case of chek issues. If you receive checks, you can transfer this amount to main bank account.

    In your senerio, if you want to implement EBS, you have to do BRS first for the past entries or you have to take the opening balance of the year into your main bank balance (Opening balances of all bank entries with BRS figures). Then you do the EBS configuration and go for EBS.

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    • Your main account balance must tally with your bank statement amount received from the bank.

      Sub-accounts are volatile and they are continuous in nature.

      You need to manually post the entries in the main account and clearing them off in the sub accounts. In other words, for all the transactions which are confirmed by bank in their statement, should appear in your main account. You may have to post a Journal Voucher.

  • Posted on Dec 09, 2011 at 05:33 AM

    Hi,

    If your receipt and issue a/c are open item accounts use F-04, if not FB50 and please make sure that up to date you have done the all postings in receipt and issue a/c.

    Example:

    Receipt a/c debit balance: 2000.

    Issue A/c credit balance: 1000.

    Main Bank A/c: 0

    Entry should be posted.

    Main Bank A/c- debit 2000

    Receipt A/c - credit 2000

    Issue A/c- debit 1000

    Main Bank- credit 1000

    Regards

    SM

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