This topic introduces concepts related to bank reconciliation in Q360

Note: The decisions you make are reflected in your Chart of Accounts (COA) definitions in Core Setup workbook

GL accounts

An asset or liability account, where the field “Bank Account” is checked, can be used to perform bank reconciliations. Transactions recorded in these accounts can be reconciled against your bank or credit card statements, on a monthly or period basis

Journal entries (JE)

Any JE that is posted to a bank-flagged account will automatically show up for reconciliation in the accounting period. This includes JEs generated by the system from invoices or vouchers, as well as manual journal entries

Timing

You may start a reconciliation for an account as of a selected month end period. We recommend you complete the previous period before starting a new period

With an on-going reconciliation, you can mark or unmark transactions as reconciled and save your progress as you go

Key figures

For each reconciliation, the following figures are important to understand:

• Statement Opening Balance: The Opening Balance is the amount of money on the Bank Statement at the start of the statement period.  On your first bank rec in Q360, this field is editable.   Note: Q360 does not permit you to change this number once it is saved, so ensure you enter an accurate number when starting your first bank rec
• Statement Ending Balance: The Ending Balance is the amount of money on the Bank Statement at the end of the statement period. This field is editable
• Calculate Balance: This is a calculated field that equals: Opening Statement Balance; when reconciled, Deposits are added and Withdrawals are subtracted
• Over/Under: This is a calculated field that equals: Opening Statement Balance minus Ending Statement Balance; when reconciled, Deposits are added and Withdrawals are subtracted

The goal of every bank reconciliation is to reach an over/under figure of zero for the bank statement form. The general ledger difference should also equal zero.   If this is not the case, something has been missed and this instance may require an adjusting entry or further investigation to complete the reconciliation

Reports

Q360 keeps a log of detailed reconciliation report for any bank-flagged account that can be run for reconciled, unreconciled, or all transactions