Discrepancy in Bank and Book Balances
This troubleshooting guide addresses the issue of discrepancy in bank and book balances when using Bank Reconciliation. It provides possible causes for the discrepancy, such as differences in transaction dates and posting periods, and offers solutions including recalculating total balances and including open transactions on the Bank Account Journal.
When using Bank Reconciliation, the Calculated Book Balance does not match the total for the bank account on the Balance Sheet. And, bank balance and the current balance on the Bank Account Journal do not match.
Products Affected: General Ledger
Versions Affected: Any
Bank reconciliation and the calculated book balance are derived from the transaction date. The Balance sheet and other GL reports are based on the post month and year.
To resolve the error, match the error cause to the resolution in the chart below.
| Error Cause | Resolution |
|---|---|
| The Bank Statement displays dates other than the first to last day of the month. | Reports such as the Balance Sheet are based on the posting period selected, which runs from the first day of the month to the last day of the month. Before accepting balances, change the ending date to the last day of the month and compare the Calculated Book Balance to the Balance Sheet total. You can print the Check Reconciliation report with this date, being sure to change back to the correct date to click Accept Balance. |
| Voids are posted to a future month. | To resolve this, perform an inquiry for voided checks for the current month. Compare this to a complete check reconciliation report (including cleared and uncleared transactions). Look for transactions on the check reconciliation that are not on the Inquiry. |
| The current posting period transactions do not have a future date outside the dates of the bank reconciliation. | Print the Bank Account Journal for the same posting period as the Balance Sheet and compare to the complete Check Reconciliation report. Look for transactions that are on one report, but not the other report. This would cause a difference in the amounts. |
| Transactions posted to a future posting period do not have a transaction date within the dates of the bank reconciliation. | Under Inquiry on the Bank Account, change the posting period to the next period and look for transactions dated within the check reconciliation dates. This would mean that they are included on the check reconciliation balance, but not the Balance Sheet total. |
| Journal Entries or Adjustments made to the cash account are included on the bank statement, but not in the bank reconciliation. | Include these in the bank reconciliation. |
You can also recalculate total balances and include open transactions on the Bank Account Journal.
- Under Manage Records, select the Transactions tab.
- In the drop-down list, select General Ledger Transactions and click Go.
- In the Enter/Post Transactions window, click Bank Accounts.
- In the drop-down list, select a bank account.
- Optional: When the list of transactions displays, click View to view detailed transaction information.
- Click Recalculate Total Balance. The Total Balance field updates with the correct information.
- Click Close.
- Under Generate Reports, click the Reports tab.
- In the list, select General Ledger and click Go.
- Expand Journals, then select Bank Account Journal and click Customize.
- Under Transaction Options, select Include Open Transactions.
- Click Preview.