Bank Reconciliation Process Have you ever had one of those days when nothing seems to add up? I think most of us have experienced days like that, especially when trying to balance bank accounts. Most of you already know how to reconcile bank statements, but today, we are going to look at how to reconcile the bank statements in the FMS environment.

Prepare Reports for Verification Outstanding Check List Outstanding Deposit List Transaction Activity Report Bank Accounts To reconcile these statements, it is helpful to have the following reports. When selecting your date ranges, be sure to allow for checks that may not have cleared from prior months. These reports will only select checks or deposits that have not yet been reconciled. Transaction Activity Report for Bank Accounts is designed to list actual cash in bank accounts. It uses a date range and should show transactions within the specified range.

Bank Reconciliation Process This same flow chart is listed on page 5 of user’s guide.

Enter Bank Statements Manually Specify Account and Ending Date CDS.620 Bank Statement Input Voided Checks Page 6 of the user’s guide shows sample screen prints of how to navigate to the screen to begin entering the data from the bank statement. (BRING UP SCREEN on SMART BOARD) The first item needed is the bank ID and the bank account number (use the F4 key for a list of options). Next enter the end date for the statement period. Enter individual lines. Voided checks are automatically marked in the system as reconciled.

Enter Check Data Beginning & Ending Balances Checks Deposits Adjustments Enter Journal Entries on GL Enter Adjustments in Reconciliation Page 8 show a sample of the the preliminary screen to record the beginning and ending balances from the bank statement. Next we move on to entering the check data. The LINE TYPE must equal C. The F4 check provides a drop down menu of the checks to be reconciled for this bank account. … or just key in the check number. (USE #s 212, 213, 214) In the AMOUNT field, just press enter, and the system will fill in the amount of the check. Verify that this amount matches the amount on the statement. The system pops up a message: VERIFY RECONCILED AMOUNT IS EQUAL TO ORIGINAL CHECK AMOUNT DEPOSITS will follow the same format. Just change the LINE TYPE to D ADJUSTMENTS –again the same format, but the LINE TYPE will be A. (SHOW EXAMPLE – USB 153691167 7/31) JE’s -- page 10

Print Bank Statement Edit Listing Run Bank Statement Edit Listing Verify data input on CDS.620 Page 12 Run the Bank Statement Edit Listing. Verify data to bank statement. Make any required corrections. Sample report on page 13

Bank Reconciliation Process Isn’t it just our luck to have someone help us out?

Reconcile Bank Statement CDS.625 Bank Reconciliation Process View Reports Page 14-15 Once the data has been verified, and we are certain we are ready to reconcile, run the reconciliation process – CDS.625 (BRING UP SCREEN on SMART BOARD) This process generates the following reports. (Samples are at the back of your book) CDS.622 Bank Reconciliation Edit Listing CDS.660 Outstanding Check Listing CRS.660 Outstanding Deposit Listing CDS.540 Voided Check Register CDS.625 Bank Reconciliation --This report incorporates the outstanding checks and deposits to calculate the balance of the checking account.

Reconcile Electronically Receive File From Bank Setting Electronic File Options Load Bank File Electronically Reset Reconciliation Flags Update Edit Listing File Page 16 For those who are bemoaning the fact that they must manually enter all the checks, here is a bit of good news. The bank may provide an electronic file of the checks for your bank statement period. The format of the file differs from bank to bank. The bank is generally willing to modify their file to meet your needs. Ask to bank to use the date format MMDDYY and to omit the final total line of the file. Need to use FTPTrans to upload the bank file. The file layout needs to be defined to the system, using CDS.670 CDC.674 actually loads the file into the system. This process creates the Bank Statement Input file. If for some reason, the file is not loaded correctly, use CDS.670R to reset the reconciliation flags, then reload the file. The deposit and adjustment (fees and interest) need to be added to the Bank Statement Input file.

Purge Reconciliation Files Recommend not using this procedure Unlimited Storage Data will be lost Select File to Purge Backup data before purging Purge file Page 22 We strongly recommend that this feature NOT be used for the following reasons. The files need to be retained in accordance with record retention laws. (Approximately 7 years). Since the AS/400 has virtually endless storage capabilities, it is recommended no to use this feature. Once the data is purged – it is gone. No way to retrieve data. The system actually removes all reconciled checks dated before the date specified. These checks will no longer be available for reports and/or processes, including 1099 processing at the end of the calendar year.