9.2 Perform Book to Bank Reconciliation
Purpose: Book-to-bank reconciliation compares bank-reported balances in the bank statement against the system's general ledger bank balance for a specified fiscal period. Book to Bank Reconciliation is normally performed as part of the periodic PeopleSoft General Ledger Close process after you run bank reconciliation and have posted all subsystem transactions. Discrepancies between the bank balance and ledger balance are due to:
- Time difference items that affect the bank statement, such as deposits in transit or unreconciled checks. These are transactions that are booked in the system but not yet acknowledged by the bank.
- Fees or interest accrual amounts noted on the bank statement but not yet booked into the system.
- The Book to Bank reconciliation functionality integrates with General Ledger, Payables, Expenses, Receivables, and Treasury applications.
- Book to bank reconciliation is month end process not a daily process.
Audience: Finance Staff.
You must have at least one of these local college managed security roles:
- ZZ Treasury Bank Processing
If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.
- Ensure that the same currency code that you specified for the general ledger account is used by the bank account.
- Book to Bank Reconciliation works only when bank accounts are configured for Automatic or Semi-Manual Reconciliation.
- All subsystem transactions should be posted to the General Ledger and run the trial balance.
- All deposit exceptions should be resolved.
- Reconciliation status for all daily reconciliation should be set to 'complete’.
Step 1: Select Book to Bank Statements
Navigation: NavBar > Navigator > Banking > Reconcile Statements > Book to Bank Reconciliation
- Enter or select the appropriate Bank ID and Account.
- Enter or select the appropriate From Date and Through Date. It should be start date and end date of your fiscal period. Make sure GL period is closed and all sub ledger Accounting entries are posted into GL.
- Select the Search button.
- Manually select all statements. Make sure all statements are selected.
- Select the Select and Calculations button. It triggers Book to Bank Reconciliation process to run. Once the process runs, it performs the data extraction and balance calculations.
- Select Process Monitor link to track the progress of the book to bank reconciliation process (TR_BTB_CALC).
- Select the Refresh button until the process status is Success and Posted.
- If process completes with No Success or Warning, then please submit a service ticket with ERP Support team.
Step 2: Book to Bank Reconciliation
Use the Book to Bank Reconciliation page to search for statements marked ready for Book to Bank reconciliation, review balance details, and schedule the process to perform Book to Bank data extraction and balance calculations.
Navigation: NavBar > Navigator > Banking > Reconcile Statements > Select Book to Bank Statements
- Your Bank ID and Account will default as per your security setup. If not, then Select or Enter correct Bank ID and Account #.
- Select correct Fiscal Year and Accounting Period, which were selected for processing in the above Step-1. You may leave Accounting period blank.
- Select the Search Button.
The possible statues for the Bank Statements listed on this page are:
- New: This status indicates that the statement is new, and no balances or adjustments have been saved.
- Awaiting Confirmation: This status indicates that some balance and adjustment work has been saved, but the statement has not been confirmed.
- Calculating: This status indicates that the TR_BTB_CALC process is running to extract the adjustment data and recalculate the balances.
- Confirmed: This status indicates the statement has been finalized as confirmed.
- Select the Details icon where you can view the Book to Bank Reconciliation Bank Statement and Ledger Balances and view and edit any adjustments.
- If the Book to Bank difference is zero and you know there is nothing outstanding, select the Confirm button.
- If discrepancies exist, after researching them and making possible adjustments, return to the Book to Bank Reconciliation page and select the Recalculate link to run the Book to Bank Reconciliation process again for the selected statement.
- Review the Book to Bank Reconciliation Details page each time you recalculate to check that the bank statement and general ledger are balanced. Select the Confirm button once you are satisfied that the total adjusted bank balance and the total adjusted ledger balance are in balance.
Note: In order to compare apples to apples there is need to adjust the totals for:
- In Transit transactions - transactions posted to GL and thus has affected the GL cash balance, but not yet reflected in the bank account ending balance as the bank has neither debited or credited the account and remains an outstanding transaction.
- Unbooked - transaction has been reconciled, therefore the bank account balance has been affected, but has not yet posted to GL therefore the GL cash account balance does not reflect the transaction.
- GL adjustments - journals which did not originate from AP, AR, TR or Expenses but still affected the GL cash account balance. Unfortunately there is no way to match these journal lines to a bank statement line and will continue to be reported because Book to Bank Reconciliation lists all GL adjustments as they can never be marked as reconciled.
- Bank Statement Balance - Displays the Closing Balance (Statement Code 015) on the bank statement that occurs within the displayed fiscal year and accounting period.
- Ledger Balance - Displays the system side ledger balance for the bank account. The balance as of date is determined by the ledger's period end date.
- Bank Adjustments - Displays the total of all unposted bank transactions that exist in the bank statement but not in the system, and which have transaction dates that occur before or on the general ledger period end date.
- You can do following steps to review the transactions. For an example, we will see GL Adjustment and Bank Adjustment details.
- Select the Details (Drill Down) icon next to GL Adjustments.
- Make sure to note the number of GL Adjustment transactions included in this reconciliation.
- Select Next / Previous / Last icon, if needed.
- At bottom of screen select Clear All box.
- This action records all transactions as being cleared through the bank.
- Select each transaction, which has not yet cleared the bank.
- Select OK.
- Select the Details (Drill Down) icon next to Bank Adjustments.
- Select View All, if needed.
- Select Clear All box to indicate you have reconciled these items earlier.
- Select respective transaction, if required.
- Select OK.
- You can review the details for Unbooked and In Transit transactions.
- You can add Comments. You are REQUIRED to enter comments that explain the book to bank balance before confirming.
- Select Save.
- Check Book to Bank Difference. The difference should be zero.
- Select the Report button to generated your bank reconciliation report for manual approval (say approval from your Accounting manager).
- Once approved, select the Confirm button to lock your numbers and prevent any additional entries.
- Once you confirm the book to bank statement, you confirm that the bank balance between General Ledger and the bank statement is explained and confirmed for the period.
- Select Save again.
- Once confirmed, the Book to Bank Status will change to Confirmed.
- Select the Event Log link to view event tracking, which identifies the user and date and time that the original Book to Bank process was run, the user and date and time that the book to bank reconciliation was confirmed, and the user and date and time that the confirmed.
- Below is a sample report.
Step 3: Override Book to Bank Status
You may find it necessary to override a book to bank reconciliation that has a status of Calculating or Confirmed. To change either of these statuses for a bank statement to the status Awaiting Confirmation, access the Override Book to Bank Status page.
Navigation: NavBar > Navigator > Banking > Reconcile Statements > Override Book to Bank Status
- You select the value Awaiting Confirmation in the New Status drop-down menu and save the page. This enables you to make any necessary changes to the data and select the Recalculate link on the Book to Bank Reconciliation page to run the Book to Bank Reconciliation process again. Each time you override a calculating or confirmed book to bank reconciliation, it is tracked in the Event Log.
Possible reasons for overriding the reconciliation include these:
- The bank sent you a corrective statement.
- You find it necessary to book an entry in the general ledger.
- Process complete.