Cash management: Manual reconciliation of Miscellaneous Transaction

1. From cash management you can reconcile Miscellaneous transactions (bank charges, exchange gain/loss, bank interest, cash transfer etc.) manually. This can be used for debits (payments) and credits (receipts). All the items created in Cash Management will be recorded in Receivables and posted to GL when a GL transfer is ran from Receivables. 

   
   

   
   

   

   
   
   
   
   

   Go to the line item you would like to reconcile and click on the “Create” button, then select “Miscellaneous” and click “OK”. 

   
   

   Select the activity which you would like to reconcile it against. This list is populated from the “Receivables Activities” setup in Receivables. With Receivables Activities you can map a specific activity against a specific GL account (for example for Bank Chares, Bank Interest, Exchange Gain/Loss etc.) 

   
   

   Enter a friendly Receipt Number, so you can easily trace it back later on when needed. For Example: “Bank Charges 30-Oct-2014”. 

   
   

   Select the values in the other fields from the drop down lists Then click “Create” and “Yes

   
   
   

   

   
   

   
   

   • Incorrect CE setup information can include wrong transaction codes, currency, or bank account information. The solution is update CE setup information and then run the Auto-Reconciliation Import program again.
   •  For bank transmission errors, the solution is to obtain a correct transmission file from the bank or alternatively update the statement using the Bank Statement Interface window. For SQL Loader file problems, modify Loader file and then rerun the Auto-Reconciliation Import program.
   • In CE you can also create AR transactions and AP transactions and you can also reverse these transactions.
   •  When NSF or rejected receipts appear you can handle them manually by reversing the receipt manually and then reconciling the reversed receipt.
   •  When a stopped or voided payment is done then voids the payment in AP to mark the supplier invoice as unpaid then reconcile the stopped/voided payment statement line to the voided payment

   
   

2. or Payment

   
   

   If in any case one is not able to automatically reconcile payments or receipts in cash management, then we can reconcile them manually by following below process:

   
   

   When you’re in the “Review” window, click on “Lines”. Then select “Unreconciled” and click on “Find”. It will then show you the unreconciled line items

   
   

   

   
   

   

   
   

   

   
   

   
   

   
   
   

   
   

   Click on “Available”, Select “Payment” under “Detail”, empty the number fields and click on “Find”. When possible enter the amounts, this will make the search a lot faster!

   
   

   
   

    

   
   

   Or it is a receipt then

   
   
   
   

   

   
   
   
   

   Select the transaction you want to reconcile it with by ticking the box in front of it and then press “Reconcile”.

   
   
   

   

   
   

   
   
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   Cash Management: Automatic Reconciliation

   
   

   The purpose of reconciliations is to make sure that items placed on the Cash Clearing account by the Payables and Receivables sub ledgers get matched against the bank statement lines and therefore move out from the Cash Clearing account. Any Miscellaneous transactions would need to be reconciled as well in order to complete the reconciliation of the bank statements. 

   
   

   Go to the “Bank Statements and Reconciliation”-windows. Select the account you would like to work on. Select “No” for the “Complete” option in case you only want to see statements that haven’t been fully reconciled yet. Then click on “Find” and you will get the statements that still need to be reconciled. 

   
   

   
   

    

   
   

   
   

   Navigation:  Tools->Auto reconciliation. Afterwards click on “Submit”. 

   
   
   

   

   
   

   
   

   
   
   

   
   

   
   

   Cash Management will now try to automatically reconcile Accounts Payables payments, Accounts Receivables receipts and any Miscellaneous Transactions (Bank Charges, Cash/ZBA Transfers, USD/Euro pooling transactions etc.)

   
   

   You can also customize the concurrent request to run Auto reconciliation process along with Load and Import.

   
   

   Matching Criteria for Payables Transactions

   The Cash Management Auto Reconciliation program fully matches Payables transactions against bank statement lines if the transactions meet the following criteria:

   • For payment batches (such as EFT batches), the Payment Instruction ID matches the statement line Transaction Number, and the transaction amount is within the reconciliation tolerance, and
   • For the detail payment transactions stopped transactions, the matching sequence searches in the following order:
   1. Payment Number
   2. Invoice Number and Supplier Bank Account
   3. Invoice Number and Supplier Name

   Also, the transaction amount is within the reconciliation tolerance.

   Note: If the bank statement does not provide a check number for a payment, then matching to the invoice number and supplier bank account number is particularly useful.

   • For stopped transactions, the payment must first be stopped or voided in Payables.

   Matching Criteria for Receivables Transactions

   The Cash Management Auto Reconciliation program fully matches Receivables transactions against bank statement lines if the transactions meet the following criteria:

   • For remittance batches (such as Direct Debit batches), the Remittance Batch Deposit Number or Receipt Batch Name matches the statement line Transaction Number and the transaction amount is within the reconciliation tolerance.
   • For detail remittance transactions, NSF (Non-Sufficient Funds), and Rejected transactions, the matching sequence searches in the following order:
   1. Receipt Number
   2. Invoice Number and Customer Bank Account Number
   3. Invoice Number and Customer Name

   Note: Also, the transaction amount is within the reconciliation tolerance.

   If the bank statement does not provide a receipt number for a receipt, then matching to the invoice number and customer bank account number is particularly useful.

   • For NSF (Non-Sufficient Funds) or Rejected transactions the receipt must first be reversed in Receivables.

   
   
   

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