How to reconcile the bank

Reconciling means matching what the bank says with what your books say, line by line, until what is left explains the difference between the two balances. You need accounting on, the bank account with its G/L account and the statement imported (see How to import the bank statement).

Open the reconciliation

Go to Payments and banking › Banks › Bank accounts and click Reconcile on the account. At the top you see the Book balance and the Bank balance.

The screen has two sides:

• Bank statement: the bank lines not yet reconciled.
• Books: the entries on the bank's G/L account not yet reconciled: incoming and outgoing payments, deposits, bank movements and journal entries.

Accept the suggestions

Nori pairs a bank line with a book entry of the same amount, up to 3 days apart. If the reference matches too, the suggestion carries the Reference badge.

1. Review the suggestions and uncheck the ones that don't belong together.
2. Click Reconcile the checked ones.

Deposits help here: a deposit of several cash counts or checks is one line in the books, as it is at the bank.

Reconcile by hand

For what Nori doesn't suggest, for example a bank deposit that matches three customer payments:

1. Check the lines on the Bank statement side and the entries on the Books side.
2. The bottom shows each side's total and the Difference. When it is zero, add a comment if you want and click Reconcile.

You can check several on each side as long as they add up the same. Clear removes the checks.

Bank fees, interest and charges

What the bank charges or pays on its own isn't in your books. Record it from the line:

1. On the Bank statement side, click + (Post to the books) on the line.
2. Choose What it is: Bank fee, Interest earned, Interest charged or Other.
3. For a fee, choose the VAT included (16 %, 8 % or no VAT): Nori splits out the paid input VAT. For Other, choose the account.
4. Click Post and reconcile.

Nori posts the entry with the accounts from G/L account determination and reconciles it with that line in the same step.

Why: in SAP Business One you record the fee separately and then reconcile it. Here it comes from the same statement line, so it can't be left unreconciled.

Undo a reconciliation

Under Recent reconciliations, at the end of the screen, click Undo on the wrong one. Its lines go back to pending on both sides. The reconciliation stays in the list as Undone.

The entry of a fee or interest recorded from the reconciliation isn't deleted when you undo; if it was a mistake, cancel that movement in Bank movements.

Reconciliation report

Click Reconciliation report, choose As of and click Show. The report starts from the bank balance and the book balance at that date and adds what is pending:

• In the books, not in the bank: deposits in transit, checks you issued that haven't been cashed.
• In the bank, not in the books: fees, interest or deposits you haven't recorded.

At the end, the Adjusted bank balance and the Adjusted book balance must be equal. It prints or downloads as PDF.

If you don't see…

• The Reconcile button: the bank account has no G/L account, or accounting is off.
• A payment on the Books side: its tender posts to another G/L account, or it is dated before the bank account's opening balance date.
• The Bank statement side is empty: you haven't imported the period's statement.
• "It does not balance": what you checked on one side doesn't add up to the other. Look for a missing line or a fee inside the amount.
• A difference in the report even with everything reconciled: the bank account's opening balance doesn't match what the books had at that date, or a line is missing from the import.