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Bank Reconcile

It's really important that the transactions in your Sage bank accounts match what has actually gone through your bank account, so that you know your bank balances are correct. This also helps you to ensure you manage your cash flow effectively.

Sage Accounts has a Reconcile option within the Bank to help you easily match each transaction in Sage to your bank statements.

To reconcile your bank account

1. Bank > select the required bank account > Reconcile.

2. Complete the Statement Summary window as follows:

   Statement Reference	Shows the bank account reference, date and statement number. You can change this to show your own statement reference.
   Ending Balance	This defaults to the current balance on the selected bank. Enter the end balance from the actual bank statement you are about to reconcile.
   Statement Date	Enter the end date of the actual bank statement you are about to reconcile.
   Interest Earned	If your bank statement shows any interest earned, enter the details in these boxes.
   Account Charges	If any bank charges appear on your statement, enter the details in these boxes.

3. Click OK.

   The Bank Reconciliation window shows the following:

   Statement area

   Stmt. Reference	This is the reference from the Statement Summary window. This automatically shows the bank account reference, date and statement number.
   End Date	This is the date from the Statement Summary window. Only transactions up to and including this date appear on the Bank Reconciliation window.
   End Balance	This is the end balance from the Statement Summary window and is the balance to which you are reconciling the bank statement.

   Unmatched items pane

   Date	The transaction date.
   No.	The transaction number.
   Reference	The transaction reference.
   Details	The transaction details.
   Payments	The value of the transaction if it took money out of the bank.
   Receipts	The value of the transaction if it put money into the bank.

   Matched against statement pane
   

   Date	The transaction date.
   No.	The transaction number.
   Reference	The transaction reference.
   Details	The transaction details.
   Payments	The value of the transaction if it took money out of the bank.
   Receipts	The value of the transaction if it put money into the bank.
   Balance	The running balance of the selected transactions.

   Book Balance
   

   This is the actual balance of the bank account in the software at the date specified for the reconciliation. The balance does not include transactions dated after the reconciliation date.
   

   Totals area
   

   Payments	Defaults to zero and is updated by bank charges that you have entered in the Statement Summary window and payments moved to the matched against statement pane.
   Receipts	Defaults to zero and is updated by bank interest received that you have entered in the Statement Summary window and receipts moved to the matched against statement pane.
   Matched Balance	Initially, this displays the opening balance figure. That is the current reconciled balance from the last time you reconciled the bank account. It updates automatically by the value of each transaction you move to the matched against statement pane. As you work through your bank statement reconciling each line, this value changes to match the balance on your bank statement. Before you save the reconciliation, this balance should be the same as the closing balance on your bank statement.
   Statement Balance	This is the end balance from the Statement Summary window and is the balance to which you are reconciling the bank statement.
   Difference	The Difference box displays the difference between the value in the Matched Balance box and the Statement Balance box. When you have selected all of the transactions to be reconciled and entered any relevant adjustments, this box should display zero.
   Smart Totals	The Smart Totals are located to the right-hand side of the matched and unmatched panes. As you select transactions from either pane the relevant total updates. Payments out of the bank account are negative and receipts into the bank account are positive. The total displays the difference between the receipts and payments highlighted.

   Buttons
   

   Edit	This opens the Statement Summary window, where you can amend any of these details.
   Find	Use this option to find transactions in the unmatched items pane.
   Swap	Use this option to swap the currently selected transactions in the unmatched or matched items pane.
   Clear	Use this option to clear any current selections in the unmatched or matched items pane.
   Match	Use this option to move a transaction from the unmatched items pane to the matched items pane.
   Unmatch	If you have matched a transaction in error, you can use this option to move it back into the unmatched items pane.
   Up and down arrows	Use these buttons to move a matched item up or down the list of matched items.
   Adjust	Use this option to add an adjustment. This posts either bank receipts, customer receipts, customer refunds, bank payments, supplier payments or supplier refunds.
   Reconcile	This flags the transactions as bank reconciled.
   Save	This saves the bank reconciliation.
   Print	This prints a list of the unmatched transactions and matched transactions.
   To Excel	This sends a list of all items to Microsoft Excel.
   View History	This opens the statements folder which contains all saved bank statements.
   Report	This creates a report that displays all unmatched items, the reconciled balance, statement balance and difference in the bank reconciliation. This report uses the date you enter in the bank reconciliation and therefore shows any transactions that were not reconciled at that date even if they were reconciled after that date.

4. From the unmatched items pane, select and match the transactions to be reconciled. To do this, either double-click each transaction or select the required transactions > Match.
   

5. To unmatch transactions that you have matched in error, from the matched against statement pane either double-click each transaction or select the relevant transactions > Unmatch.

6. To post an adjustment > Adjust > select the adjustment type you want to post > OK > enter the transaction details > Save > Close.

7. Once you have matched everything to your bank statement > Reconcile.

8. If the value of the matched transactions is not the same as the statement end balance the Reconciliation Difference window appears, and you can either:

   Add Adjustment	Select the adjustment type you want to post > OK > enter the transaction details > Save > Close.
   Ignore Difference	This option flags all of the transactions in the matched against statement pane as reconciled.
   Cancel	To return to the Bank Reconciliation window, click Cancel.