Cashbook Reconciliation - Allow matching of Journals

Overview

Reconciliation of cashbooks can be configured to allow reconciliation of journals posted to a specific cashbook. The feature must be enabled individually per entity and cashbook. 

The feature is switched off by default in all cashbooks and must actively be switched on when required.

It is recommended that the feature is NOT switched on for main cashbooks because they are generally used to reconcile bank statements. Journals do not appear on bank statements, hence should only be posted on these cashbooks in exceptional circumstances.

Reconciliation of journals is, for example, appropriate to use when reconciling cash-register cashbooks. Cash-roundings are often written off using journals.

How to switch on the feature

Pre-condition:

If an unreconciled recon has been created in the cashbook, it will need to be cancelled before proceeding.

It is not necessary to dissolve completed recons. 

Settings:

1. GXManage Module -> Global Lists -> Ledgers -> Ledger Manager

2. Select the correct Ledger Schema and click on OK

3. Click on the "balance sheet" radio button. An "Edit cashbook" button will appear at the top right-hand section of the screen.
4. Select the applicable cashbook in the list of accounts in the bottom-left section of the screen.
5. Click on the "Edit Cashbook" button. The screen displays the settings for the cashbook. Double-check that you have selected the correct cashbook. The name and id of the cashbook are displayed in the bar at the top of the cashbook screen.

6. Check the "Include cashbook journals in recon" checkbox to activate.


Using the feature:

Once the feature is switched on journals will be imported into the reconciliation screen.   

Rows in the screen are colour-coded as follows:

  • Blue rows = cheques
  • Green rows = deposits
  • Cream rows = journals.


  • The standard reconciliation process can now be followed.

Reconciliation Report:

The reconciliation report reports slightly differently from the report in the Non-Journal Report:
  • The debit and credit journals are summarized in the "Cashbook Analysis" section.


The "matched transactions" section displays the transactions that have been matched in this particular recon:

 The systems displays:

  • The "opening balance" - this corresponds to the "opening balance" captured by the user/system for this recon. It includes the total of all transactions that have been reconciled before this session.
  • The transactions matched in this session are displayed per transaction type.  
  • The "closing balance" is displayed as typed in by the user. The "closing balance" corresponds to the total typed in by the user.   
  • Unmatched transactions (including journals) are displayed at the end of the report
The system will reconcile when the following two tests pass:
  • Test 1: "opening balance" plus "matched transactions" in the session corresponds with the "closing balance".  
  • Test 2: "closing balance" plus "unmatched transactions" corresponds with the cashbook balance.

In the following example "Test 1" will fail, and "Test 2" will pass:


Last modified: Thursday, 6 August 2020, 3:07 PM