Bank Reconciliation

The Bank Reconciliation screen lets you reconcile your individual bank accounts. The account's Cleared Balance is calculated from previously entered Deposits/Credits and Checks/Debits and any Service Charges/Interest that you enter in this screen, and is then compared to the bank statement's Ending Balance.

Table of contents

• Step 1 - Open the Bank Reconciliation screen
• Step 2 - Select Bank Account and Statement date
• Step 3 - Enter Bank Charges/Credits
• Step 4 - Select Deposits/Credits and Checks/Debits
• Step 5 - Enter bank statement's Ending Balance, add/edit entries
• Step 6 - Record reconcilition

Step 1 - Open the Bank Reconciliation screen

• From the Accounting Menu select Bank Reconcilliation.

Step 2 - Select Bank Account and Statement date

There are two items to select:

• Account — This is the bank account to be reconciled. Select from the drop-down box.
• Date of Bank Statement — This is the date of the bank statement you want to reconcile. Select from the drop-down calendar.

Step 3 - Enter Bank Charges/Credits

The bank may have charged various Service Charges or paid Interest that you have not yet recorded in Rent Magic. You must enter them here.

• Service Charges: Enter here any Bank Service Charges that you have not yet recorded in Rent Magic.
  • Amount - Enter the amount of the Service Charges
  • Account - From the drop-down box select from the Chart of Accounts the account to which the Service Charges are to be applied.
• Interest: Enter here any Bank Interest that you have not yet recorded in Rent Magic.
  • Amount - Enter the amount of the Interest
  • Account - From the drop-down box select from the Chart of Accounts the account to which the Interest is to be applied.

Note: Do not record Service Charges or Interest that you have already recorded in Rent Magic as Deposits/Credits or Checks/Debits. If you do, they will appear twice!

Step 4 - Select Deposits/Credits and Checks/Debits

Rent Magic displays a list of previously entered Deposits/Credits and Checks/Debits. There are five columns:

Name	Description
Date	The date of the deposit/credit or cheque/debit.
Ref	The reference # such as cheque # or deposit reference #.
Payee	The Vendor name.
Memo	The memo entered along with the deposit or cheque.
Amount	The amount of the deposit/credit or cheque/debit.

By default this list provides all items from the date of the last reconcilliation until the Date of the Bank Statement.

• Check the Show all items checkbox to show all items from the date of the last reconcilliations until the most recent entry, uncheck to return to the default list.

The bank statement or other payment records may then be used to check off the list items.

• An individual item may be selected/unselected by checking/unchecking the checkbox to the side of the item.
• Click on Select All at the bottom of the list, to automatically select all items.

Step 5 - Enter bank statement's Ending Balance, add/edit entries

• Enter the closing balance on the bank statement in the Ending Balance box.

Rent Magic now determines if the bank statement reconciles with your entries. Several fields are displayed:

The_Field's_Name	Description
Starting Balance	The balance at the end of the last performed bank reconcilliation
Deposits/Credits totalling	The number of deposits/credits that you have checked off is displayed on the left and the total amount of these deposits/credits is displayed on the right. Unchecked items are ignored.
Cheques/Debits totalling	The number of cheques/debits that you have checked off is displayed on the left and the total amount of these cheques/debits is displayed on the right. Unchecked items are ignored.
Interest earned, Service Charges	These are determined from your entries in the Interest and Service Charges fields at the top of this screen. Items previously listed in Deposits/Credits or Cheques/Debits will not appear.
Ending Balance	The bank statement's closing balance, as entered by you.
Cleared Balance	This value is calculated by the system from the Items marked as cleared as follows: Starting Balance + Deposits/Credits + Interest earned - Cheques/Debits - Service Charges
Difference	The calculated difference between the Cleared Balance and the Ending Balance.

If the difference is zero, then the bank balances.
If the difference is not zero, there are three steps to take:

1. Determine if an item in the Deposit/Credits or Checks/Debits list was incorrectly checked or unchecked.
2. Determine if the difference is an unentered item on the bank statement. If forgotten, then enter the item. See Payments for instructions.
3. Determine if the amounts displayed in the lists on this screen (Credits, Debits, Interest, etc.) match the amounts for the items on the bank statement.

To correct a Bank Charge or Credit, simply edit it on this screen. To correct a Deposit/Credit or Cheque/Debit, double click anywhere on the item's line in its list, then edit and save.

Step 6 - Record reconcilition

• When the difference is zero select Reconcile.

Return to Accounting

---