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Reconcile - Setting up

Reconcile - Setting up

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Reconcile - Setting up

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Before we can reconcile we need to make sure the opening balance for the account for the financial year is correct. You can set the opening balance by selecting: Accounts from the Top Menu and then: Nominal from the Left Menu, then find the appropriate account, click Edit and edit the Opening Balance field. If you are entering an Opening Balance for a previous financial year you can select the Year from the Drop-Down at the top of the screen.

The Opening Balance for the start of the financial year is the Computer (or True) balance and is based on the date you marked it Paid on the computer, not the date it eventually appeared on the printed statement.

However on the Reconciliation screen it is much easier to reconcile when working by the statement date. This is normally roughly the same as the Paid date, but we do need a system to adjust this for the year opening balance.

So to give an example, if the financial year start date was 1-July and we had the following transactions:

 

Statement Date  Paid Date        Reference                Paid-In                Withdrawn        Balance

                         Opening Balance                                        500.00

30-June            29-June        Ace Plumbing                    0.00                200.00                300.00

30-June            30-June        Banking                425.00                    0.00                725.00

3-July                    30-June        ABC Supplies                    0.00                220.00                505.00        

         

The computer closing balance at 30 June (by Paid Date) is 505.00. However the closing balance on the printed bank statement is 725.00. You should enter the 505.00 as the next years opening balance and Evopos will automatically work out the adjusted balance for the Statement date on the Reconcile screen as follows:

Year Opening Balance: 505.00, Paid<Statement: 220.00, Adjusted Opening Bal: 725.00

The idea is that as each item appears on the account statement (eg: your printed bank statement).Reconciling confirms everything has been entered correctly and should show the correct Current (Closing) Balance. 

This example is for a Bank account, however other balance accounts such as Petty Cash, Business Cards and Loan Accounts should be Reconciled as in the same way.