Account Reconciliation Overview

Overview

This article will cover how to use the Account Reconciliation feature in Softbase Evolution.  Account Reconciliation is used to reconcile GL Transactions in Softbase for a specific Account to Bank Statements, Credit Card Statements and other documents that requiring reconciling.  

Process Flow

Chart of Account Updates

• Update the Chart of Account record(s) that you will want to perform Account Reconciliations against and set an Account Reconciliation Start Date.  This can be done by going to Accounting -> Chart of Accounts and then editing the Chart of Account(s).  
  • Set Account Reconciliation Start Date to the Date you would like to have GL Transactions brought into moving forward in Account Reconciliation.
  •  This only has to be done one time when starting Account Reconciliation for the GL Account

Account Reconciliation

• Create a new Account Reconciliation by going to Accounting -> Account Reconciliation and choosing the + Reconciliation Button.  

• Enter the following information
  • GL Account # - This is the GL Account  you want to reconcile
  • Statement Date - This is the Ending Statement Date you want to reconcile through.  
  • Beginning Balance - Beginning Balance of the Statement
  • Statement Balance - Balance of the Statement as of the Statement Date 
• Choose Save and this will bring in all GL Transaction that haven't been cleared from the Account Reconciliation Start Date of the GL Account based on the Effective Date of the GL Transaction.  
  • If you haven't set the Account Reconciliation Start Date on the GL Account you will see the below message

• Select the Cleared Checkbox next to all GL Transactions that are match transactions on your statement to indicate they are cleared.  This will update the Debits and Credits in the Difference Box and how you the remaining Difference until it balances and shows a difference of 0.  
  • When the Difference is not 0 you will not be able to Finalize the Account Reconciliation as there is no Finalize button in the upper right hand of the page.  

• If you have created an Account Reconciliation and it is open and you find that you need to add GL Transactions that may be missing for that period, you would add those in Evolution, using Journal Entry, AP Invoice or other features in Evolution that would create a GL Transaction to that Account.  
  • After you make that GL Transaction, if you go back into the open Account Reconciliation and put it in Edit Mode you will see the, Retrieve new GL Transactions button.  When you press that button it will add in all new GL Transactions that weren't on the open Account Reconciliation for that GL Account and time period.  
    • This button will only show up in Edit Mode and if GL Transactions had been created for the GL Account and time period the Account Reconciliation is for.  

• Once the Difference is zero by you selecting all GL Transactions that should have been cleared that match up to your Statement you can finalize the Account Reconciliation

• Once you have finalized your Account Reconciliation you can view it from the Account Reconciliation Search Page
  • You will only be able to review the current open Account Reconciliation and the previous finalized Account Reconciliation records from the Search Page
  • If you Delete an Account Reconciliation from the Search Page it will also delete your Open Account Reconciliation for that GL Account if you have one open.  
    • If you had a previous finalized Account Reconciliation prior to the one you delete you will then see that appear in the Search Page.   
• After you have finalized an Account Reconciliation and you are ready to open up the next Account Reconciliation for that account you can do that from the Account Reconciliation Search page by choosing the + Reconciliation button
  • When you enter in the GL Account Number that had a previously finalized Account Reconciliation, it will set your Beginning Balance as the Statement Balance from the previous Account Reconciliation.  
  • You can also open up a new Account Reconciliation record for a GL Account when viewing the Finalized Account Reconciliation and choosing the Next Reconciliation button
    • This will set your Beginning Balance as the Statement Balance from the previous Account Reconciliation.