Bank Reconciliation Out of Balance - How to find the error

There are many reasons you could have a bank reconciliation error – a few common reasons are as follows:

• Receipts entered for the incorrect amount
• Receipts entered more than once
• Payments being made at the bank but not yet made in Palace
• Eftpos receipts taken over the counter but not entered or presented in Palace
• Reversals being done, but not re-entered
• Bulk payments being processed and bank account numbers missing in Palace so the payment
  is excluded from the bank online file

First, you need to determine what type of error you have:

• A positive error, generally means that there is more in Palace than in the bank
• A negative error, generally means that there is more money in the bank than in Palace
• A common mistake that is made when dealing with a bank reconciliation error is fixating on the
  amount you are out by. For example, an error of -$400, could be
  - A receipt for $400 that has not been entered
  - Or it could be multiple receipts ($150 and $250 etc)
  - Or it could be a receipt AND a payment (ie, receipt of $600 and a payment for $200)

Run through the appropriate checklist below:

Bank is more than what Palace is showing

1. Check the closing balance is correct
2. Check if there are any debits on the bank statement that you need to present if they are not
   in the unpresented list, check if they have in fact been made in Palace
3. Check that you have not presented a receipt that isn’t a credit on the bank statement
   (ie, Eftpos or Cash)
4. In the Bank Reconciliation, go to the Presented Tab
5. Find the date you are troubleshooting for, use the blue arrow to expand and see all
   transactions that were presented for that date
6. Check all the receipts that have been entered to make sure there are no duplicates or
   incorrect amounts, you can print a receipts report and compare the receipts entered against
   your bank statement
   Financial > Audit Reports > Audit Trans (Receipts)
   Filter by date and use the date range from the last time you successfully balanced your bank rec
   to today
   Generate – tick off each receipt based on the receipt seen on the bank statement

The Bank Closing Balance is less than the Palace current Balance

1. Check the closing balance is correct
2. Check if there are any receipts in the unpresented list that need to be presented (ie, Eftpos
   or cash that has cleared in the bank and was already entered into Palace but not presented
   yet)
3. Check that you have not presented a payment or refund that isn’t a debit on the bank
   statement
4. In the Bank Reconciliation, go to the Presented Tab
5. Find the date you are troubleshooting for, use the blue arrow to expand and see all
   transactions that were presented for that date
6. Check the payments that have been entered to make sure there are none missing or
   processed for incorrect amounts, you can print a receipts report and compare the receipts
   entered against your bank statement
   Financial > Audit Reports > Audit Trans (Payments)
   Filter by date and use the date range from the last time you successfully balanced your bank rec
   to today
   Generate – tick off each payment based on the debit seen on the bank statement
7. For bulk payments that were made, check the Direct Credit Schedule that was saved,
   the total of this should match the total payment on the bank statement. You can
   then check the direct credit schedule breakdown against the payment report to see
   if there was a payment missing from the schedule (due to an account number
   missing)

If you follow these steps, you will find what you are out by, once you have found it then you can sort it, if not sure how to sort from here, please contact us. We can help you sort it but only you can find it.