Initialising Bank Reconciliation

tradewinds

Hi,

I have read a lot of posts on initial bank reconciliation but am still lost on a specific point.

We're migrating to Navision, and have migrated balances to the GL using general journal entries. Then I populated the bank account with the GL bank balance by posting a general journal for account type = bank, posting the Dr and Cr to the same bank account.

Now the balance on my bank account card is equal to the balance of my GL account for that bank. When I receive my bank statement, the balance is going to be different to my Navision bank balance. However, there are no items to reconcile.

In another post, it was mentioned that 'What you need to do is create an entry for all previously reconciled entries, reconcile that then add new entries for unreconciled items to bring the balance into line'.

Can someone explain this in more detail......
I have created the dummy entry to populate the balance on my bank account card. Now, how do I create the entry for all previously reconciled entries to reconcile in bank rec ? Is this done via the general journal, and if so, is it a separate dummy entry that debits and credits the bank account ? Or is it entered as an adjustment within bank rec, debiting and crediting the bank account ?

Appreciate some detailed help.

Thanks :P

ara3n

Usually when we bring bank balances from another system, we bring only open entries for the bank. Basically unreconsiled entries as gen journal with bank as account no and balancing account being the posting group associted account.

We do not bring reconsiled entries.
If you want to bring reconsiled entries. You have to write some special dataport.

Robyn

Rather than posting one transaction for the amount of the g/l balance, you should post the balance of the last statement reconciled and the individual unreconciled transactions.

These are posted to the bank account.

The sum of these transactions will be same as the g/l account balance.

The balancing line of the journal is the g/l account balance with the opposite debit credit sign posted direct to the g/l account for bank.

Then you first reconcile the last statement balance transaction to correctly update the Last Statement balance on the Bank Account Card.

Once you have done this the bank account should match the g/l and contain all unreconciled, unpresented entries.