ERP Internals/Modules/Bank Reconciliation

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Introduction[edit]

Every enterprise has at least one bank account. Enterprises can have several accounts in different currencies at different banks. Most enterprises make a daily bank deposit. This consists of the checks the enterprise has received plus any cash or credit/debit card receipts. Periodically (depending on the account activity), the enterprise receives a bank statement for each account it has. Statements can be received electronically or in the mail. Bank Reconciliation assists the enterprise in reconciling the balance shown on the bank statement with the amount shown in the corresponding General Ledger cash accounts. This involves flagging Accounts Payable, Accounts Receivable, and Payroll checks as cleared, flagging deposits as recorded, and entering service charges and other miscellaneous debits and credits. Bank Reconciliation also handles non-AR deposits such as owner investment. Every ERP has a Bank Reconciliation module.

Tables[edit]

The first table is the Bank Account table which contains one record for every bank account. The second table is the Transaction table which contains one record for every bank transaction (check, deposit, interest, service charge, adjustment).

Transactions[edit]

  • The first type of transaction is a check drawn on the account.
  • The second type of transaction is a deposit made to the account.
  • The third type of transaction is a service charge made by the bank.
  • The fourth type of transaction is interest paid into the account by the bank.
  • The fifth type of transaction is a transfer of funds from one account to another.
  • The last transaction records miscellaneous adjustments made to the account.