To make sure your Bank balances to the General Ledger, you should verify that the 'Statement Balance + Uncleared' value on the Reconciliation report, as shown above, and the GL Account balance for that bank account as of the same date match.
There are a few reasons these values may not match. When you approve a bank rec, it takes a snapshot of the system as of that time so the 'Statement Balance + Uncleared' value on the Reconciliation report is showing the balance according to that snapshot.
Reasons You Might Not Balance
- You entered a transaction after completing and approving the bank rec. Even if you enter a new bank withdrawal transaction and date it before the statement end date of that bank rec, it will appear on any GL Account balance reports (Trial Balance, Balance Sheet, GL Account Detail reports) but not on the Reconciliation report. This report is based off the snapshot of the time when the bank rec was approved, so this transaction will not be included in the balance of that bank rec, causing a discrepancy.
- If you do not want the discrepancy to show up, you will need to unapprove the bank rec and then reapprove the bank rec, in order for the system to pick up this new transaction. This transaction will now show in the uncleared list on that bank rec and will be part of that balance on the reconciliation report.
- The wrong statement beginning balance is entered on a bank rec. The beginning balance on a bank rec defaults as the ending balance from the previous bank rec, but the User can override this value if desired. If the user puts the wrong value in this field, then the math on this bank rec will not balance with the previous rec, which might cause it to be out of balance with the GL account.
- You started with an incorrect beginning balance when you went live with R365. An incorrect beginning balance means that there are expenses in your legacy system that need to be entered as Open Bank Transactions (unreconciled transactions) to start in this system. If you did not enter those expenses as bank beginning balance transactions or entered an Amount other than that amount, then you will be out of balance because to start the system, your GL was already out of balance from the bank.
- There are various other reasons they might differ, such as making an edit to a transaction after a Reconciliation or voiding a reconciled transaction.
Bank to GL Reconciliation Report Will Help
To help you investigate the reasons for the difference, you can run the report titled "Bank to GL Reconciliation" in the Banking section of the 'My Reports' page.
For this report, you can select the bank account you want to evaluate and the bank rec you want to evaluate it as of as well as choose whether to show 'Only Out of Balance Reconciliations', 'All Reconciliations', or 'This Reconciliation Only'. Because of the huge amount of data this report is analyzing to find possible balance problems, it may take some time to run.
1) Hyperlinked Date - Clicking the hyperlinked date will open the Bank Reconciliation. Next to the hyperlink, a + or - sign means that there are more details that can be listed out (+) or that the details are already expanded (-)
2) Hyperlinked Transaction - Clicking this allows you to open the transaction on a detail row
3) Balance Issue Comment - If there's a comment listed, it will detail out why that row might be causing an issue
Review this report to help you narrow down your issues and resolve them.