• Assign or review General Ledger accounts that correspond to your bank accounts. In The Financial Edge, you may use only one cash account code. The cash account can exist in multiple funds.
  • Prepare your bank account for reconciliation.
    • Edit bank account details to enable reconciliation.
    • Set a business rule to create adjustments for journal entries to cash accounts. To ensure that your bank register, cash account (General Ledger detail) and bank account all stay in balance, do not allow journal entries to the cash account without adjusting the bank register.
  • Create adjustment categories (such as Service Charges) so you can categorize and track adjustments.
  • Ensure all subsidiary ledger transactions are posted.
  • Find your starting point. Which was in use first--the program or the bank account?
    • If the program was in use before your bank account, your starting point will be the initial bank transaction that created the bank account.
    • If the bank account was in use before you starting using the program, your starting point will be the beginning balance recorded in the program.
    • If you are not sure, run the General Ledger Report for the cash accounts to search for the first transaction and compare this to your bank statements.
  • Reconcile to your starting point. For example, if you began using your bank account January 15, 2004, reconcile to a beginning zero balance at December 31, 2003.
  • For previously posted journal entries, create bank adjustments.
    To avoid duplicating these entries in General Ledger, mark them with a Do Not Post status.

For detailed information on completing your bank reconciliation, refer to the Banks Guide.
Contact your account manager to purchase the Cash Management optional module.