Sage X3 Core Financials - Day 6 - Bank Reconciliation

Question 1

BANK RECONCILIATION:

Answer 1

In this Lesson, you will learn about Bank Reconciliation.

TOPICS IN THIS LESSON INCLUDE:

• Manual Bank Reconciliation,
• Reconciling Bank Entries,
• Advanced Bank Statement Imports Overview,
• Understanding the Reconciliation Flows,
• Matching Payments,
• Reversing a Reconciliation,
• Printing a Reconciliation Report.

Question 2

Manual Bank Reconciliation: (BANREC)
Path: A/P - A/R Accounting > Bank Transactions > Bank Reconciliation

Answer 2

Businesses commonly reconcile their General Ledger on a monthly basis and some Accounts like the Cash Account need to be closely monitored and are reconciled frequently like weekly or daily.
Many Banks also provide Online Bank Statements, meaning Reconciliations can be done daily or weekly, depending on Company needs and Policy.
Some Companies do Manual Reconciliation while Larger Companies may receive Bank Statements through Electronic Files and do Reconciliation automatically.

We use Bank Reconciliation (BANREC) to perform the following:
– Determine Cleared and Outstanding transactions.
– Determine transactions missing from the System.
– Determine true Cash balance.
– Compare Cash Book (GL) balance with Bank Statement balance to find discrepancies.
– Check the status when a Payment associated with a Check is included on the Reconciliation.
– Create a Reconciliation Note with information such as the end balance of the Bank Statement. Keep the Reconciliation Note and print it anytime using (BANREC)
– Zoom-in Journal Entry to create Bank Expense entries or other entries.
– Enter adjustment reasons, which are stored in the Reconciliation Note for the new bank line.
– Switch to Payment Entry to create a Payment.
– Ability to close and Re-Open the Bank Reconciliation.

The Status Field is displayed only and contains the following options. A search can be performed through the Search button based on the Status entered at this field.
– Not Open: No Bank Statement is entered or created.
–Open: Bank Statement is created but not complete and(modification is possible)
– Closed: Locked.

Question 3

Reconciling Bank Entries: (POINTAGE)
Path: A/P - A/R Accounting > Bank Transactions > Reconciliation

Answer 3

We use Reconciliation (POINTAGE) to reconcile the Bank Entries based on the hard copy Bank Statement without having to enter or import the Statements.

• When a Bank is selected, the associated General Ledger and Bank Balance display for reference.

Question 4

Advanced Bank Statement Imports Overview: ( )
Path: Setup > A/P - A/R Accounting > Bank Import Settings.

Answer 4

Advantages of Advanced Bank Statement Import Functions:
– Automatically matches Bank Transactions to Open Items and Payment Data.
– Improves Workflow when working with Bank Statement Imports.
– Automates Payment Reconciliation.
– Supports matching Statement Transactions to existing issued and posted payments created in the Payment process, as well as the ability to enter manual entries linked to matched payments.

We use Bank Import settings Function to define the settings for Bank Transaction Imports and Automatic matching. Settings can be made by Company and Bank and must be done at the Company Level at a minimum.

• This function also provides an option to send data to the Bank Statement Reconciliation Function or the Advanced Bank Statement Import Functions.
• The Reconciliation Flow Types include Standard, Reconciliation only, and Post Validation Transfer.
• The codes you define here are important in determining how Transactions are imported, matched to Open Items, and how Payments are generated using the Bank Transaction management function.
• You can create multiple codes per Company for different Sites, Banks, Formats and so on.
• The Settings in the Search Criteria section directly control the Automatic matching process.

BAI Bank Standard - Prerequisites:
Some Steps need to be completed before starting to work with Advanced Bank Statement Import Process.
– Activate the BSI - Bank Statement Import Activity Code.
– Use a dedicated Payment Entry Type for the bank statement Import and assign a Default Payment Attribute.
– Define the Bank Import segments for each record type (Such as header, strart/end Totals, Transactions)

— The Segment definition describes the detailed structure of the information contained in a segment.
— This includes segments from the Logical parts, like the header, data line, footer, etc of a Bank Import format.
- Based on this, the Import extracts and interprets the information contained in the file.
— The Sequence of the segments is controlled by the Import format definition. If you are importing BAI2 files, you need to define Bank Import type Codes.

• Define the Bank Import formats with the Sequence of the segments used (header, line).
• Ideally, define Invoice and business Partner numbers (used for the automatic matching process)

– Define the Bank Import settings used for the Statement Import and Controlled by Company and Bank Account.

Question 5

Understanding the Reconciliation Flow: ( )
Path: Setup > A/P - A/R Accounting > Bank Import Settings

Answer 5

There are 3 main Reconciliation Flow Types available in the Bank Import settings Function.

• Reconciliation only: The Reconciliation only Flow type acts purely as an Import interface for the Bank Reconciliation Function.
• Standard Flow: The Standard Flow Type involves Open Item Matching and Payment generation only, with no further Reconciliation Flows.
• Post Validation Transfer: The Post Validation Transfer Flow Type acts as a bridge from the Advanced Bank Statement Import function to the Standard Bank Reconciliation process.
  Thus you need to activate the Post Validation Transfer Option in Settings.

Question 6

Reversing a Reconciliation: (DEPOINTAGE)
Path: A/P - A/R Accounting > Bank Transaction > Reconciliation Reversal

Answer 6

We use Reconciliation Reversal (DEPOINTAGE) to reverse a Bank Reconciliation. This may be necessary if you reconciled information incorrectly or the appropriate adjustments were not made.

Question 7

Printing a Reconciliation Report: (RPT08)
Path: Reports > Prints/Groups > Financials > Treasury

Answer 7

We use Treasury (RPT08) to print the Bank Reconciliation Report.
In the window, Select: RAPPRO - Bank Reconciliation Report.