Bank Reconciliation

First time use

Scope Systems Pty Ltd

Copyright © Scope Systems Pty Ltd, 2008

PO Box 422, Scarborough WA 6922
Level 3, 1 Manning St (Cnr The Esplanade)
Scarborough WA 6019
Tel: (08) 9245-9900
Fax: (08) 9245-5022
Email: support@scopesystems.com.au
URL: www.scopesystems.com.au

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Author rikh

Creation Date 12 November 2008

Document C:\#Rik\Documentation\Work Instructions\Bank reconciliation - first time

v1.2.doc

Version Number v 1.0

Revised Date

Last Saved 13 November 2008

Document template Document Template v2.2 without Appendix.dot

 Bank Reconciliation

Table of Contents

1. Overview ........................................................................................................................................................1
2. The first Bank Reconciliation ......................................................................................................................2
3. Traps ..............................................................................................................................................................6
3.1. Debit or Credit .........................................................................................................................................6

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3.2. Bank transfer ...........................................................................................................................................6
3.3. Un-presented Journals ............................................................................................................................8
3.4. Payment/Deposit Register maintenance .................................................................................................8
3.5. Immediate posting ...................................................................................................................................8
4. Security Settings ..........................................................................................................................................9
5. Reports ........................................................................................................................................................10
5.1. Bank statement report ...........................................................................................................................10
5.2. Print Reconciliation................................................................................................................................11

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 Bank Reconciliation

Document History

Version Date Author Changes

1.0 September 2008 R. Hilhorst Created Bank Reconciliation setup document.
1.1 November 2008 R. Hilhorst Updated the process of bank reconciliation, clarified
some of the text and included additional traps to be
careful of and added a section of the different types of
transactions.
1.2 November 2008 R. Hilhorst Updated the process for transferring funds between
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banks.

ii File: Bank reconciliation - first time v1.2.doc

 Bank Reconciliation

1. Overview
The bank reconciliation process has been overhauled in Pronto-Xi 660.

While the entry of reconciling entries may be similar, how those options work has been changed. For
example, some transaction types will now invoke the standard Pronto-Xi program for that function and post

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the transaction immediately, whereas previously the transaction was stored and the GL was not updated until
the reconciliation was posted, the transactions that are posted immediately cannot be removed from the bank
reconciliation (regardless of whether the reconciliation has been posted or not).

It is advisable to review Bank Reconciliation manual for Pronto-Xi 660 to determine which transaction types
are posted immediately, which are not posted at all, and which are posted when the bank reconciliation is
posted. A short list appears in section 3.5.

In addition to the above, when a reconciliation is started, it is locked to that user, to unlock the reconciliation
the Bank Reconciliation Control options must be used. This is controlled by a separate security role and so
can be allocated to a single person. There are also new roles to control who can use bank reconciliation,
who has access to the pay-in slip functions and who has bank reconciliation “System Administration”.

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 Bank Reconciliation

2. The first Bank Reconciliation

When the first bank reconciliation is performed in Pronto-Xi 660, there are no bank balances available for the
program to use. Generally the first problem is that the reconciliation will expect you to enter transactions to
account for the zero balance to the current balance of the account. Initially you can setup a bank balance as
of the last successfully completed bank reconciliation and then perform the bank reconciliation from that point
onwards.

The first step is to identify the date of the last successful bank reconciliation for each bank account. You
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require the statement from the bank to get this figure.

To enter the figure into Pronto, open the Statement Reconciliation option.
The bank reconciliation menu option can be found in both Account Payable and General ledger.

General Ledger location Accounts Payable location

Selecting the Statement Reconciliation option shows a list of the Banks available.

Select the appropriate bank account.

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 Bank Reconciliation

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Enter the date of the last successful bank reconciliation, in this example 1 May 2008 is used.

Do not put a figure in the closing balance. Click on the OK button. At this point we do not enter a closing
balance for the reconciliation, we are going to get Pronto-Xi to tell us what the closing balance is.

On the next screen press escape to cancel the transaction entry.

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 Bank Reconciliation

It is possible that transactions that were entered into the bank reconciliation before the upgrade was done
appear on the transaction screen. This is ok as these transactions would have been posted already, so no
action is required to be taken (i.e. they should be left there). If this is a concern you can contact Scope
Systems to confirm that the transactions have been posted.

Click on the Reconcile Bank button.

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Pronto will show the above screen. Note the Calculated Closing Balance figure. This is -1,230,848.73 in the
above example (if you click on the number in the yellow box with the right mouse button, you can select the
Copy option from the pop-up menu).

Exit the bank reconciliation back to the first screen where the bank account was selected.
Select the bank account, enter the date for the last successful bank reconciliation (in this example it is 1 May
2008), in the closing balance field enter the balance that was notes on the Reconcile Bank screen (if you
copied this figure it can now be pasted into the Closing Balance field).

Click on the OK button.

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 Bank Reconciliation

Click cancel on the next screen and then click on the Reconcile bank button.

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The Calculated Closing Balance and the Closing balance per bank statement should now match and a green
tick appear. Click on the Post button to post the reconciliation.

Because there are no transactions there is nothing to post in the batch.

When you next enter the bank reconciliation for that account, the closing balance that was posted will now be
picked up as the opening balance for the next bank reconciliation.

To start the new reconciliation, enter the date that the reconciliation is being done for, enter the new closing
balance and then enter the transactions (in the example used here the next date entered would be 2 May
2008).

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3. Traps
3.1. Debit or Credit
When entering a transaction into the bank reconciliation, the statement determines whether the amount is a
debit or credit, i.e. if it appears as a debit on the bank statement, then enter it as a debit in the bank
reconciliation.

This can be problematic for some transaction types, for example when entering an Interest earned
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transaction the cursor moves to the Debit column first, prompting a value to be entered.

Do not be tempted to enter a value in the Debit column, this would normally appear as a credit on the bank
statement, tab over the Debit field to the Credit field and enter the amount of interest earned.

3.2. Bank transfer

If you wish to transfer funds between bank accounts, this can be performed from within the Bank
reconciliation.
Note that this is an immediate posting transaction – i.e. the transfer is posted to the GL account when the
bank transfer enter is completed and not when the bank reconciliation is posted.

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 Bank Reconciliation

Depending on whether this is the bank account is receiving the funds to transferring the funds impacts on
how the entry is done. The chart below shows how the entry of the transaction is reflected in the bank
statement and the GL account.

Shown in bank
Transfer value Shown in GL as Effect
reconciliation as

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+ ve Debit Credit transfer funds from this account

- ve Credit Debit transfer funds into this account

When you perform the reconciliation on the other bank account involved in the transfer, enter a transaction
type of J (present journal) , this will let you select from a list of journals for the bank account that have not yet
been presented, the transfer of funds will appear on the list of journals.

If one of the accounts involved in the bank transfer is not setup as a bank account, then a journal is required
(performed outside of the bank reconciliation and requires the journal to be presented in the bank
reconciliation) or GL direct post transaction type (O) is entered (the debit or credit indicates whether is
amount is shown as a debit or a credit on the bank statement).

If transferring between two foreign bank accounts, you will be asked for two exchange rates. The first
exchange rate is to convert from the foreign currency to the local currency, the second is to convert from the
local currency into the destination foreign currency.

The exchange rate from DM to local currency is 0.98.

i.e. DM 100 / 0.98 = AUD 102.04

The exchange rate from local currency to NZD is 1.18.

i.e. AUD 102.24 * 1.18 = NZD 120.41

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If a mistake is made when entering a transfer between the banks it can be removed before the reconciliation
is posted by removing the transaction. If the journal has been presented in the other bank account effected,
then remove the presentation of the journal from that bank account, and then remove the transfer from the
initiating bank reconciliation.

3.3. Un-presented Journals

Un-presented journals are, generally, journals that have been entered outside of the bank reconciliation
process, which should be included in the bank reconciliation.
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To present an un-presented journal, enter a transaction using the transaction type J (present journal), this will
present a list of the un-presented journals from which you can select the journal to present, one at a time.

3.4. Payment/Deposit Register maintenance

Do not use the payment register maintenance or deposit register maintenance programs, these functions
should now be done through the bank reconciliation.

If you present or cancel cheques in the payment register maintenance program then the bank reconciliation
process does not include the cheque as a transaction in the bank reconciliation, and it does not appear as an
un-presented payment.

In addition to now being able to see the cheque, the Account balance from the GL is adjusted by the amount
of the cheque or payment, so if the account balance from the bank statement is entered as the closing
balance when starting the bank reconciliation you will not be able to account for the difference.

A cheque presented or cancelled from the payment register will still appear in the payment transaction listing.

3.5. Immediate posting

The following transaction types are posted immediately and cannot be removed once used in the bank
reconciliation because they are posted as soon as the entry is completed. In most cases they start the
Pronto-Xi program that normally performs this task.

These transactions will be assumed to be automatically presented when entered from within the bank
reconciliation and will be posted to the respective Sub Ledger accounts upon completion of that specific
transaction.
• A – Customer Direct Post;
• P – Supplier Direct Post;
• H – Post Dated Transaction Allocation;
• T – Transfers Between Banks;

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• X – Dishonoured Cheques.

Refer to the Pronto-Xi Bank Reconciliation manual for more information on the different transaction types.

4. Security Settings

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Three new roles have been included in Pronto-Xi 660 that relate to the bank reconciliation. As part of the
configuration of the Pronto-Xi 660 setup three additional roles should have been created that can be applied
to staff user profiles. These are;
• BANKREC - given to any user that is expected to perform bank reconciliations.
• BANKRECS - given to any user that is expected to unlock a bank reconciliation. If a user is given
BANKRECS they are not required to have BANKREC.
• BANKRECP - given to users instead of the BANKREC role if bank pay-in slips are used. This gives
access to additional options used to setup and generate the bank pay-in slips.

To unlock a locked bank reconciliation, go to the Unlock Bank Reconciliation option from within the Bank
Reconciliation Control menu.

Select the Bank account that is locked, click on the Correct button and remove the user name in the Modified
By field.
Press F4 to complete. The bank reconciliation is now unlocked. There are some occasions when this is not
sufficient, in these cases, contact Scope Systems to reset the Bank Reconciliation.

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5. Reports
There are a number of reports available for the bank reconciliation, the two more common reports are a list of
the entries entered into the bank reconciliation and the listing of the details of the reconciliation.

5.1. Bank statement report

The bank statement is a list of the entries entered into the bank reconciliation within Pronto-Xi. This can be
run for the current reconciliation, or any previous reconciliation on that bank account (as long as the
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statement data has not been cleared).

To print a bank statement report, go into the bank reconciliation, select the bank account and continue as
though you are entering transactions from the bank statement. At the transaction entre screen, press the
Escape key so as not to enter a transaction, and click on the Statement Print button.

This next window that appears shows a list of the previous bank reconciliations, both those posted and not
posted. Select reconciliation date that you would like to print the statement for and click on the Select button,
this will print the report.

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5.2. Print Reconciliation

To print the reconciliation details for the current bank reconciliation, click on the Reconcile Bank button, from
the Bank Reconciliation for Bank Account window, click on the Print Reconciliation button. This will print a
report that contains the same details as the window that is open.

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It can be useful to print these two reports when about to post the bank reconciliation and file the reports with
the bank statement.

It is possible to reprint the Bank Statement report after a Bank Reconciliation is posted, however it is not
possible to re-print the Reconciliation report after a Bank Reconciliation is posted.

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