Checkbook Reconciliation

This process is used to reconcile a check book with the statement from the bank.  After you have completed a reconciliation on a check book the general ledger cash account number associated with the check book should be checked to assure that the balances are in agreement.

During the reconciliation, it may be necessary to enter additional information.  This may be done by Journal Voucher or Non Accounts Payable Checks.

Deposits or Checks/Charges that have already been marked as cleared will not show in the reconciliation program.

Voided checks will display in reconciliation until the month ending in which they were voided, then the system will clear them automatically.

Overall Bank Reconciliation Process

  1. Make Journal entries to record:
    1. Bank service fee
    2. Interest earned
    3. Income
  2. Pull Interface All
  3. Process Checkbook Reconciliation
  4. Verify checkbook balance matches general ledger cash account balance

Journal Entries

See General Ledger - Journal Entry or Revenue Entry 

Interface All

See General Ledger Interface

Bank Reconciliation Process

NAVIGATION: ACTIVITIES menu > Checkbook Reconciliation Section > Reconciliation Process

  1. In the CHECK BOOK ID field, select the checkbook you want to reconcile.
  2. In the STATEMENT INFORMATION section (bottom right of the screen), enter the following information from your bank statement:
    1. Statement Balance
    2. Statement Date
      1. It is recommended to use the bank statement end date. If your Statement Date does not use weekends, such as a last day of the month is Saturday or Sunday and the statement date would be Friday. You can choose to always enter the last day of the month of the statement date. 
    3. Adjustments/Bank Errors
      1. If there are bank errors that need adjusting, enter the amount in this field. This amount can be added at any time during the reconciliation process if it is needed.
      2. This is to be used when you believe the system is correct and the difference is due to an actual bank error that you will call the bank to correct. This can be a missing deposit or a transaction recorded for a different amount than in the system.  
      3. You will not enter any other transactions for this. The following month when correction is recorded on the bank statement, you will not need to enter any transaction and will not use the Adjustments/Errors field again.
  3. Click the START RECONCILING button (bottom right).
    1. After you click the button, the grids will have alternating row color.
  4. The screen will fill with uncleared deposits at the top of the screen in the DEPOSITS/CREDITS section; checks will appear at the bottom of the screen in the CHECKS/WITHDRAWLS section.
    1. Only items through the bank statement date that was entered in Step 2 will appear.
    2. Transactions dated after the Statement Date will not be shown.
  5. At this point if you need to exit the reconciliation screen and return, re-enter the checkbook ID, bank statement information, and click START RECONCILING again. Your work from the previous session will appear.
  6. Select the items that have cleared the bank.  There are two ways to do this.
    1. OPTION 1: Using your mouse, enter a check in the SELECT column for each item.
    2. OPTION 2: To mark a consecutive range of check numbers as cleared, in the lower left is a PROCESS RANGE button with two blank boxes above it.
      1. In the first blank box enter the first check number
      2. In the second blank box enter the last check number.
      3. Press PROCESS RANGE.
      4. All of the check numbers for the range entered will be checked. (WITHDRAWLS ONLY)
  7. To clear all check marks and start over in selecting cleared items, press RESET.
    1. NOTE: This will not update the X cleared box in VIEW CHECK BOOK.
    2. The checkbook is not updated until you complete the reconciliation by pressing PROCESS RECONCILIATION.
  8. The top right of the screen will show a BALANCES section.  The book balance, outstanding deposits, outstanding checks, and the difference. If the difference is not zero, you should continue to investigate any differences.
    1. Some causes of this difference may be items you do not wish to correct in the system, such as a bank error.
    2. In these cases, complete the reconciliation as below and print the RECONCILIATION BALANCE REPORT. Write on the report the differences between the bank statement and check book. Keep for your records and verify that the items have been corrected during next month's reconciliation.
    3. Differences that are a result of these errors may be entered in the ADJUSTMENTS/BANK ERRORS field to save the information with the reconciliation.
    4. If there are items on your bank statement that are missing from the reconciliation, then you may need to enter additional income deposits or process expenses as Non-AP to record these items.
    5. Close the Checkbook Reconciliation, make any required entries, and return to the bank reconciliation screen.
    6. Re-enter the checkbook ID, bank statement information, and click START RECONCILING again. Your work from the previous session will appear, you will not lose any progress made previously. The items that have been checked will retain their check marks.
  9. If there are items on your bank statement that are missing from the reconciliation, then you may need to enter additional Journal Vouchers or Non-AP checks to record these items.
    1. Close the Checkbook Reconciliation and return after adding the missing items.
    2. The items that have been checked will retain their check marks.
  10. When the difference is zero and you are finished reconciling, click PROCESS RECONCILIATION.
  11. A prompt will appear asking if you want to continue; click YES.  
  12. This will update the checkbook for the cleared items from the current reconciliation.
  13. Once you have processed reconciliation, save/print the reconciliation reports.

Reconciliation Reports

Once you have processed the reconciliation, save/print the reconciliation reports: Cleared Item List, Outstanding Item List, and Balance Report.

Cleared Item List

NAVIGATION: ACTIVITIES menu > Checkbook Reconciliation Section > Cleared Item List

  1. Checkbook: select the checkbook
  2. Start/End Date: enter the same start/end dates used in the reconciliation process
  3. Sort Order: Select one of the following report options:
  4. Date/Document Number
  5. Document Number/Date
  6. Pay Group
    1. Enter or select a Pay Group to constrain the report to information containing the selected pay group.
    2. This field may be left blank to generate a report containing all pay groups.
    3. When a pay group is selected, the description will be displayed.
  7. Sort and Break by Pay Group
    1. Click in the box to enter a checkmark to sort and break up the generated report by pay group.
    2. This is most useful when the pay group field is left blank and the report contains information for multiple pay groups.
  8. Print, preview, or save the report (see Report Preview, Print and Save Options).

Outstanding Item List

NAVIGATION: ACTIVITIES menu > Checkbook Reconciliation Section > Outstanding Item List

  1. Make sure the correct checkbook is selected.
  2. Enter the start/end date
  3. Sort Order: Select the order for the generated report from the following options:
    1. Date/Document Number
    2. Document Number/Date
  4. Reporting Mode: Select one of the following modes:
    1. Outstanding on Date - All items that are outstanding as of the End Date will be included on the list.  This report should match your bank reconciliation.
    2. Only Currently Outstanding - This report lists all checks that are outstanding as of the date the report is run.  Enter the End Date as the cut off for the last check date to be included on the report.  Use this report to list stale checks.
    3. Pay Group Selection: Enter or select a Pay Group to constrain the report to information containing the selected pay group or leave this field blank to generate a report containing all pay groups.
  5. Sort and Break by Pay Group: Enter a check mark in this box to have the Outstanding Check List sorted and reported by Pay Group.
  6. Print, preview, or save the report (see Report Preview, Print and Save Options).

Balance Report

NAVIGATION: ACTIVITIES menu > Checkbook Reconciliation Section > Balance Report

  1. Make sure the correct checkbook is selected.
  2. Enter the statement date.
  3. Print, preview, or save the report (see Report Preview, Print and Save Options).

Reconcile Checkbook with General Ledger

The checkbook and general ledger trial balance are two separate things in Horizon Programs. The last step of the bank reconciliation process is to verify the checkbook and general ledger balances are the same.

  1. Reconcile the checkbook ending balance with the general ledger balance.
  2. Compare the Reconciled Checkbook Balance with the General Ledger Trial Balance Report after all month-end processes have been completed. 
  3. Verify the reconciled checkbook ending balance equals the overall general ledger trial balance total.
  4. If there is a difference, review the trial balance detail and correct identified issues.

Reconciliation Tips

  1. View the current checkbook balance in the system by going to NAVIGATION: ACTIVITIES menu > CheckBook Activities > View Check Book.
  2. If you have voided a check and the void date used is before the statement date, then that check will not show in the reconciliation window, as the system will have automatically cleared it. If the void date used is after the statement date, then it will show in the reconciliation window with a V in front of the check number. You cannot mark this check as cleared.
    1. FOR EXAMPLE: Check #301 was printed/dated 1/20/2023. 
    2. The check was voided using 3/10/2023 as the transaction date.
    3. You begin reconciling as of 2/28/2023. The check has not been voided as of 2/28/2023 so it is still outstanding. It shows as V000301 and will appear on the outstanding check reports for 2/28/2023.
    4. When you reconcile on 3/31/2023, check #301 will not appear in the reconciliation window and the system will clear it automatically.

4/2024

NEED MORE HELP?  Submit a ticket to the Help Desk or call (814) 535-7810 or (800) 889-3388