Frequently Asked Question

6 How to do a Manual Reconciliation - Cross-Company Expenses/Rents/Invoices
Last Updated 6 months ago

This is the rarest type of Manual Rec and is the most complex to achieve, though not difficult if you follow the instructions carefully.

This process will reconcile together any number of Expense, Rent and Invoice ledger transactions, even where they relate to different companies - as long as all use to the same bank account.

  1. Update all the ledger entries that you want to reconcile together with a dummy Banking Ref. We suggest something like MR180319 where the number is the current date.
  2. Create a dummy zero banking entry. This is not ideal as you are tempering with the electronic copy of the bank statement, but as the value is zero it will do no harm. You need to decide whether this is something you really want to do. This should be a company policy decision.

    Use the Banking Transactions Input button on the Banking Menu for the bank account in question.

    Add a Banking transaction line:

    Bank Text must be the same dummy Banking Ref used on all the ledger transactions - as above. The Debit and Credit values must be left at zero. A note should be entered into Manual Comment to explain the reason for the transaction.

    Warning: Care must be taken that the Date entered does not overlap with future transactions that are yet to be imported, as the bank import process will only include transactions that are dated after the latest existing banking entry. So the date should be on or before the most recent date already appearing in the bank. (You may want to do a bank import first to ensure that the banking transactions are up to date).

  3. The transactions should then reconcile, by running the regular ‘Bank Reconciliation’ process.

An alternative method to reconcile cross-company transactions is to ‘piggy back’ the manual rec transactions (total value must be zero) on top of an existing ‘real’ reconciliation.

For example, if you have an unreconciled banking entry with a Payment Ref of XYZ then set the Payment Ref of the transactions to be manually reconciled also to XYZ.

As the total value of these extra transactions is zero, it will be reconciled together with the real transaction.

The only disadvantage of this method is that you will end up with a reconciliation containing unrelated transactions. It would be a good idea to put a note on the banking transaction as to what you have done.

Please Wait!

Please wait... it will take a second!