unreconciled transactions in bank rec

This might seem like a pretty dumb question but here goes: I've been working with Sage 50 Accounts professional 2009 for about a year now and noticed each time I do the bank rec there are numerous transactions that still appear as having not been reconciled. I've tried to delete a few but they still appear in the unmatched window of the bank rec module. I'm assuming these have to be gotten rid off to make the accounts more accurate? Not sure what are the implications of leaving them on there have with the financial reports. I've also searched Sage online and nothing seems to mention how to get rid of unreconciled transactions. Can anyone help? Any advice would be much appreciated.

Comments

bank Rec

Beacon | | Permalink

The uncleared items can come from many sources, duplicate entries, cheques replaced but not cancelled,unpresented cheques etc. Each item must be checked to ensure that it can be removed or needs to remain. Any items that can be removed should be removed through the maintenance process by noting the transaction number and using that and the find button in maintenance to locate the correct record. This will ensure that a proper audit trail is produced.

ck2000's picture

unreconciled transactions in bank rec

ck2000 | | Permalink

Thanks Beacon, was dreading that -going through the records is going to take ages as there are about 4-5 printed sheets when I do the unreconciled bank transaction report. Ok, so while I'm busy doing that here's another one. Why are the bank payments and receipts that were cancelled still showing in the unreconciled window of the bank rec module? For example a bank charge was originally posted to the 7901 nominal code, was found to be made in error and was then cancelled, so shouldn't it disappear? Not sure how to get rid of it now. Any suggestions?

Bank Rec Problems    1 thanks

kevang | | Permalink

I have seen a similar problem with a client's installation of Sage 50 (V13 from memory).  I spoke to Sage and they told me that this random behaviour was an inevitable problem of using Windows Vista with a version of Sage 50 that was not recommended for use with Vista i.e anything older than V16 (2010)

As the client did not need all the functionality of Sage 50, I downgraded them to Instant V16 and as they promised the problem went away.

I hope this has been of some help

Kevan

 

 

unreconciled transactions in bank rec

Lloyd Sherwood | | Permalink

Having unreconciled items after a bank recociliation may have numerous reasons such as uncleared cheques, duplicated postings etc.

I would strongly advise not to use maintenance to clear and or delete transactions regardless of error(s). Implication is, the various ledgers are untidy with delete next to a transaction(s).

It is important to clear unreconciled items on a montly/quarterly basis, thus, using the last bank rec details (statement date, statement end balance and annotate statment number with a letter eg a or z) and clear them. This will minimise the amount of workload at end of reporting period.

Bear in mind, unreconciled items must be reversed to the orginal posting information. Any prior year items must be posted with the current year date and original nominal code posted to. Implication is, after year end closedown P&L is set to zero and difference (Profit or Loss) is added to Retained Earnings.

Finally, in respect of a 4-5 page unreconciled bank report, it is imperative to undertake such exercise(s) on a gradual basis as well as given to someone who has a very good grasp of double-entry principle.

petersaxton's picture

Understanding is key

petersaxton | | Permalink

There must be about 10 errors a month that haven't been dealt with. You need to understand why there are that level of errors. Otherwise you will just be making the same mistakes.

spacysam's picture

What I find.......

spacysam | | Permalink

I  always have unreconsiled items at the end of the month....these are normally cheques that havent been cashed yet, or money we have had from the bank which hasnt shown up in the bank statement yet.

I use an excel spreadsheet to work out the items left over, and this lets me check that Sage matches the bank (See Below)

Bank Statement Balance at: 30/06/2010             £529.00

Plus:  Uncleared Lodgements as per list              £2009.85

                                                                          =£2538.85

Less: Unpresented Cheques as per list               £2386.69

                                                                           =£152.16

Sage Balance at: 30/06/2010                              £152.16

If I need to remove an item that has been in the bank for a while (like a duplicate payment) I need to put the entry in and then go into the bank rec...I then have to select both entries so they cancel out each other - This is the only way I have found to remove them.

I hope this helps

Sam

completebookkeeping's picture

unreconciled

completebookkeeping | | Permalink

-- Complete Book-Keeping Ltd

Hi, totally agree with Sam, all the years I have been using a software system I have never reconciled without an excel sheet to confirm the differences.  Without understanding the unreconciled you may have areas in your accounts with incorrect figures.

 

petersaxton's picture

Small amounts

petersaxton | | Permalink

You will have the type of reconciling items you state but they should appear on the bank statement the next month and so reduce your reconciliation.

The reconciling amounts must be small for them to total so little given they cover 4 or 5 pages!

Bank Reconciliation Sheet

19kings | | Permalink

Why on earth in the 21st century on v16 (Windows) should we have to use a spreadsheet to produce a bank reconciliation? Shouldn't this be a standard report from Sage 50 by now?

Come on Sage - give us a proper report. Even MYOB and Quickbooks do that!

 

completebookkeeping's picture

sage

completebookkeeping | | Permalink

-- Complete Book-Keeping Ltd

are there really people out there waiting to make a negative sage comment.  My mum used to say if you can't say anything nice dont say it at all.  Been over this ground 1000 times before, yes sage can do the reports but at a point in time you should know if transactions are there in error or not and which to correct / delete etc.  A spreadsheet is for book-keeping procedures rather than a system.

 

Bank reconciliation report

19kings | | Permalink

You're right, that did sound like a negative Sage comment. It was not really intended to be. Actually I have lived and breathed Sage 50 in all its forms since Dos v3.3 back in 1989 and I love the program and am passionate as a BP and accountant that it is the best in its class.

However, I do stick to my guns that Sage should be able to produce a proper bank reconciliation report straight from the program rather than through a spreadsheet. That is something an accounting system should produce without the need to resort to a spreadsheet which can easily show incorrect figures. I am really surprised that UK accountants have not required this from the software.

I reside in Australia and several years ago when the then distributor here had Sage 50 source code to work with they were able to produce a report exactly as the one shown

Balnce per bank statement

Plus any outstanding deposits

Less: a list of outstanding cheques with a total

Equals the book balance in Sage

The reason they did this is because they were suppliers of the then major accountants software for producing end of year and tax reporting. Australian accountants require such a report and expect it to come from the program exactly as MYOB does. That distributor failed and they were subsequently bought, ironically, by MYOB who then proceeded to take out the market here as there was no real alternative. As such MYOB and its accountants version is the program most accountants here now use and recommend. We now no longer have an "Australian" version of Sage 50 (which is far better as the version we get is the full UK version and therefore fully compatible with head office / branch office scenarios for UK based companies operating here), and end users feel they have gone backwards.

Unfortunately Sage 50 then gets attacked by the client's accountant who wants them to replace it with MYOB (what a backward step!) as they understand it. Most accountants have not heard of Sage 50 and do not realise it is a far better alternative, Sage 50 does not have a majority of the SMB market here as they do in UK and so many clients are "forced" by their accountant to change from an "unknown" system to something they understand. A report like this can make all the difference.

Once again I did not intend to be anti Sage but being asked quite a few times today (June 30th is our end of financial year) why there is not a proper bank reconciliation report in Sage 50 after a long and tiring day I might have just sounded off in the wrong way.

However, Sage, we do need a proper bank reconciliation report which "proves" the balances for the accountant straight from the system,

 

Some Hints

sarah douglas | | Permalink

Hi There

It does worry me a little  that you need to ask the question about the  effect on  your Financial Reports?. but I hope the below helps.

Sage does do a report of your unreconciled and Reconciled Balance.  Sage has done this well for least 1o years. When you go to view history while in your reconiled module it shows each of your statements PDF very clearly.  If the rec is done correctly then it will show the Balance at the end of Bank statement , unreconciled Balances and the Total Book Balance,  I provide this on a regular basis to my clients who are no mugs, and would let you know if you were out by a penny.  The Sage report Reconciled and unreconciled report shows this, hence there is no need for a spreadsheet. I Really do not understand why you would double your work load,

I fail to understand understand why anyone needs to use a spreadsheet for their bank rec,  why do you need to see a spreadsheet of your differences,  if you complete your rec and do your adjustments on a regular basis then there is no need for double the work, it is called good bookkeeping and  making sure your debtors and creditors or correct ,  and I would question the accuracy of their Profit and Loss.  (or maybe thats done on Spreadsheet also ) ?  

There is nothing worse then going to a client to find out they have Reconciled the bank on excel or other spreadsheet and not corrected their findings on Sage.  Thats great. Now you can,t  use sage to produce your Financial Reports with any accuracy.One of the main reasons for doing a Bank Rec is so that you fix the mistakes and not just keep going,  I think that it is sloppy workmanship and I do not find it acceptable from our profession , the client is paying for us to know what we are doing.  this really is the  basics.  (Sorry for the Rant ) . I am sorry if I misunderstood your question.

SOME SUGGESTIONS 

You have not said whether you are doing Cash Vat accounting as this does make it more difficult .

These items do effect your TB

1) If you are doing CASH Vat Accounting if you have already reconciled then you will need to manually reverse these items, which some times requires going into your debtors and Creditors

2) If you are not doing Vat Accounting you can delete them , but watch out for the reasons you are  deleting the transaction . 

They may be a payment on account for Sales or Purchases , hence why it is a Payment on Account because you could not allocate it to a invoice.  So if you go and delete make sure you do a Creditors or Debtors Rec for that account to make sure it is okay.

You may also have done a bank payment or Receipt twice, so when you delete it it will correct the relevant nonimal code and Vat element.

After you have done your corrections . They need  to be done the same date as the original transaction , when you go into your bank Rec you should see the same figure on the DR and Cr side which cancels itself to Zero and therefore correcting you accounts.  If they are prior to the year end close they you will need to make the relevant adjustments for the Financial year.

3) In the future if you have any items like this and you know they are wrong , you should fix them before you complete your Vat Return our your CIS Return if you use that Module as you create a very difficult life for yourself later.  Especially with CIS return as it will not let you change it.  I learnt the CIS Return the hard way.

Hope this helps

-- Kind Regards Sarah@ Douglas Accountancy & Bookkeeping Services, Glasgow

Unreconciled report

Myshkin | | Permalink

 I like to rant against Sage as much as the next man but you never ever need a spreadsheet do check the reconciliation.

 

At any one time  the unreconciled items report total will equal the bank reconciliation module difference (the greyed out figure).  At the year end print that report out for your auditors.

(My rant in this instance would maybe be that the Unreconciled Report opens off the bottom of the screen when you click on the + which is presumably because Sage developers use large big beefy monitors and forget about the rest of us.)

petersaxton's picture

Sage does not produce a bank reconciliation report

petersaxton | | Permalink

It produces reports that explains some of the amounts on a proper bank reconciliation.

ck2000's picture

problem solved

ck2000 | | Permalink

I'd just like to thank everyone for their input into this problem - to answer some of the comments made, most of the erroneous payments/ receipts entered for this bank account were not done by me and I have honestly not had the time to investigate the reasons for these unreconciled balances until recently, due to workload (moan).

As mentioned, the best solution to the problem was to go off the printed unreconciled report for this bank account and interrogate the reason for each of the errors, making the necessary deletions/ amendments/ (manual reversals via journals for bank transfers as Sage does not allow deletions for transfers) as you go. BTW I actually prefer not to just delete transactions but correct them with some explanation in the narrative... As mentioned in previous suggested solutions, the resulting corrections are then matched off against one another during the next reconciliation for each bank account.

For anyone who might encounter a similar problem, apparently sometimes the bank transactions will still remain in the unreconciled bank transaction report if the transaction in question has been bank rec'd but not VAT reconciled as well. Previous bookkeeper did a bad job of reconciling in general (sigh) but solution is as simple as next time you do the VAT rec, choose 'include previous period transactions' in the VAT rec dialogue when it appears and they will then be removed.

So FINALLY the bank accounts ARE now accurate and the BS is looking good. Thank you all for sharing your knowledge and input!!! Much obliged

Monsoon's picture

Thanks Kevan

Monsoon | | Permalink

kevang wrote:

I have seen a similar problem with a client's installation of Sage 50 (V13 from memory).  I spoke to Sage and they told me that this random behaviour was an inevitable problem of using Windows Vista with a version of Sage 50 that was not recommended for use with Vista i.e anything older than V16 (2010)

As the client did not need all the functionality of Sage 50, I downgraded them to Instant V16 and as they promised the problem went away.

I hope this has been of some help

Kevan

 

 

Love AWeb. Having a very similar problem with a client in the bank rec. Reconciling a sheet, then finding the balance has changed and some things have been unreconciled, but that doesn't clear the changed balance. Nightmare. At last we can get an up to date version to work on ;-) :D 
 

Bank recon

Johnf | | Permalink

I have a supplier payment made by cheque in the current year. It is not flagged bank reconciled or VAT reconciled. It has just cleared through the bank. I went into the bank rec module in sage and to my surprise it does not appear in the unmatched window. My bank rec shows a difference of exactly this amount. Am slightly confused. Can any one help

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