Frequently Asked Question

4 How to do a Manual Reconciliation - within the same Company
Last Updated 4 months ago

Normally all ledger transactions are reconciled against a banking entry:
- An Expense transaction is entered, subsequently paid and the transaction will then automatically reconcile against the banking entry when the payment is registered in the bank.
- A rent payment received will reconcile with the rent ledger that is automatically created or manually input.

But sometimes there are ledger entries that cancel each other out and will thus never have a matching entry in the Bank against which to reconcile. Examples would be:

- An expense and a subsequent credit note for the same amount
- A transfer of deposit from one tenant's ledger to an other tenant.

While the ledger balances are all correct, having unreconciled ledger entries is not good. The various auditing and error reporting functions in PropPack will keep on reporting these entries as errors.

To overcome this problem, PropPack provides a method where these entries can be reconciled to each other - as long as the total of all transactions being reconciled together comes to a zero balance.

Note that this process is not limited to just two transactions in the same ledger. There may be any number of transactions and they can be spread across all three ledgers - Expense, Rent and Invoice.

The process is as follows:

  1. Mark all the transactions involved with a common Payment Reference. This reference can be anything you like. Our recommended convention is to use the text 'MR' (standing for Manual Rec) followed by some number. We suggest using the date. Something like: MR120319.

    For Invoices, the easiest way to enter a payment ref is to use the O/S Invoices button on the right of the Master Menu.
  2. Go to the Banking Menu, select the relevant Bank Account and click on Reconcile Non-Banking Transactions.
    - Select the Company involved.
    - Enter the Payment Ref you have used and press Tab.
    - Enter the Payment Date to be used - as appropriate. If not sure use the current date. Press Tab.
  3. If you entered the correct details above, then in the bottom part there will be shown all the transactions matching the Payment Ref you entered.
  4. The total at the bottom left should show zero. If it does then the Mark Transactions as Reconciled button at the top will become enabled. Click on it and the job is done.
  5. If the total is not zero then something has gone wrong - all transaction involved in a single Manual Rec must add up to zero. Check all the relevant transactions have the correct Payment Ref.

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