Why the difference between marked cleared credits and debits equal to half the irreconcilable differ

ZHENHUA ZHOU

Dear experts,

This is my first time to do bank reconciliation by myself with reckon accounts hosted. I found the difference is not 0, and it equal to twice difference between marked cleared credits and Debits. Why this? And how to fix it please?

Acctd4

Hi Zhenhua

 

Whilst I use online banking daily to check/enter transactions, I find it’s best practice to process a “Reconcile” in RA/RAH in line with the actual bank account statements as this gives you accurate & matching totals.

 

Firstly, check your “Beginning Balance”

This is the “Ending Balance” of the last Bank Reconciliation & MUST match your starting/opening balance on your current Statement.

 

If this is NOT correct, you will need to “Undo Last Reconciliation” back to the last statement when it WAS correct.

 

Tick off each transaction as per your statement. 

Your totals for both deposits (in) & payments (out) shown at the bottom of your screen will also been shown on your statement.  This allows you to determine which ‘side’ any discrepancy is on.

 

If your beginning balance & reconciled totals are correct, you will successfully process your Bank Reconciliation with $ 0.00 difference.

 

Once you have reconciled as per above a few times, you can tick the “Hide transactions after the statement’s end date” checkbox on the upper right of your Reconcile window.  You should then be able to click on “Mark All” to reconcile all transactions correctly to $ 0.00 quickly & easily    

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

ZHENHUA ZHOU

Dear Shaz,

Appreciate for your reply.

I did check that the “Ending Balance” of the last Bank Reconciliation and match the opening balance on the current Statement. And I did ticked off each transaction as the bank statement, they are totally match. But Bank Reconciliation still with difference, which equal to double difference between all credits(in) and all debits(out). 

I just wondering is that because this is a credit card account? Balance on bank statement is negative. Should I do something with the negative sign "-"?

Acctd4

Ahhhhh - Yes, you need to enter the closing balance as a negative

ZHENHUA ZHOU

But the beginning balance without negative sign, which is negative on the bank statement as well. Really confused.

When click begin reconciliation(as the screen below), the Beginning Balance is fixed, as Ending Balance of last reconciliation (balanced).

So if both Ending Balance and Beginning Balance are all with negative sign on Reckon Accounts Hosted, then the difference will be "0".   How can I fix it?

Acctd4

If it’s set up as a ”Credit Card” account, the balances - both beginning & ending - will always be positive as this is credit. The same applies if it’s a a bank account ( unless it’s got an overdrawn balance) as this is available funds. Therefore, if the current beginning balance on the statement is negative, it hasn’t been reconciled correctly previously as it would show your beginning balance NOW as a negative. Depending how far back the issue goes, I would suggest undoing the previous bank reconciliations back to the last correct ending balance (negative) so that your opening balance is correct for you to start the current one. Was someone else reconciling the account previously? Did they print out the reconciliation reports?

ZHENHUA ZHOU

Thank you Shaz. Yes, should be the previous bookkeeper reconciled the account. And the figures on printed reconciliation reports are all negative, same as the bank statement.

glendaveale

Where are you located?  Would you like someone to come and help with this?

ZHENHUA ZHOU

Thank you Glenda. I think I found it.

glendaveale

That's great.  Wonderful to have this forum to help each other.