Bank statements

Create a bank statement whenever you receive an actual statement from the bank.

1. In the Navigation pane, highlight the Bank Reconciliation > Statements folder.
2. Click . The New Bank Statement window opens.

   

3. Select the Bank Account the statement refers to.
4. Enter a Description of the bank statement. You can use up to 40 characters.
5. Enter the Statement Date that appears on the bank statement.
6. The GL Date field defaults to the Statement Date you entered. If you need to change the date, the new reconciliation date must fall on or after the statement date in order to include all transactions cleared by the bank statement.

7. In the Beginning Balance, Plus Total Deposits, and Less Total Charges fields, enter the corresponding amounts from the actual bank statement.

   Note

   ActivityHD uses these fields to calculate the Ending Balance.

8. When you finish, save your changes. Notice that Outstanding and Reconciled tabs are added to the window.

Create adjustments on bank statements for fees, interest, transfers, and other transactions. Each adjustment creates a posting to the reconciliation account and a posting to the offset account which is specified on the adjustment record. Separate journal entries are created for each statement's adjustments. When a statement's adjustment journal entry is merged, bank transactions are automatically created for the reconciliation account, making them available for reconciliation.

1. In the Navigation pane, highlight the Bank Reconciliation > Statements folder.
2. In the HD view, highlight and double-click the statement you need to enter adjustments against to open it in the Bank Statement window.

3. Select the Adjustments tab.

   

4. In the Adjustments table, enter the following for each adjustment you need to make:

   1. In the Reconciliation field above the table, select the reconciliation account for the adjustment you are entering. If only one GL account is registered for a bank account, that account number displays.

      Note

      If multiple GL accounts are registered to the bank account, be sure to select the GL account for each adjustment you enter.

   2. In the Date column, enter the date of the adjustment.
   3. From the Type dropdown, select the type of adjustment transaction. The list below indicates whether the adjustment type increases (+) or decreases (-) the reconcilation account. Your options are:
      • Fee (-)
      • Fee Correction (+) - Use this adjustment type to indicate a fee error by the bank.
      • Interest (+)
      • Interest Correction (-) - Use this adjustment type to indicate an interest error by the bank.
      • Transfer In (+)
      • Transfer Out (-)
      • Other In (+)
      • Other Out (-)
   4. Enter the Amount of the adjustment.
   5. In the Offset column, select the offset account to which to post the offsetting transaction.
   6. The table contains one column for each active attribute with statement usage. For each attribute, select the appropriate attribute value for the adjustment line.
   7. Enter a Description for the adjustment.
   8. If needed, enter a Memo about the adjustment.
5. When you finish, save your changes.
6. To make the adjustment available for reconciliation, you must merge the GL entry created for the adjustment. To do so:
   1. Select the Unmerged GL tab, then select the Unmerged GL Entries sub-tab.

      

   2. Locate and highlight the adjustment entry to merge.
   3. In the local toolbar, click . The Merge Journal Entries process starts and you are prompted to confirm that you want to merge the adjustment journal entry.

      

   4. Click Yes. The process completes.

      

   5. Click Finish. The adjustment transaction is now available for reconciliation on the Outstanding tab.

After you create a statement, you can reconcile transactions to the statement. Reconciliation simply means assigning transactions to a bank statement.

1. In the Navigation pane, highlight the Bank Reconciliation > Statements folder.
2. In the HD view, locate and double-click the statement to reconcile to open it in the Bank Statement window.
3. Select the Outstanding tab.

   

4. In the Outstanding Bank Transactions pane, locate and highlight the transaction(s) to clear. You can use Ctrl and/or Shift selection to select multiple transactions.

   Tip

   Select a transaction in the HD view and click to drill down to the transaction record.

5. Click . The Reconcile Transactions wizard starts.

   

6. Enter the Cleared Date to apply to the selected transactions.
7. Click Next >>. ActivityHD prompts you to confirm your action.

   

8. Click Yes. ActivityHD notifies you of the results.

   

9. Click Finish.

Occasionally you may reconcile a transaction by mistake and need to "unreconcile" it, or return it to the list of transactions to be reconciled. Unreconciling a transaction removes its assignment to a bank statement and clears the statement date. To do this, you'll use the Reconcile Transactions wizard.

1. In the Navigation pane, highlight the Bank Reconciliation > Statements folder.
2. In the HD view, locate and double-click the statement with the transaction(s) to be unreconciled to open it in the Bank Statement window.
3. Select the Reconciled tab.

   

4. In the Reconciled Bank Transactions pane, locate and highlight the transaction(s) to unreconcile. You can use Ctrl and/or Shift selection to select multiple transactions.
5. Click . The Reconcile Transactions wizard starts.

   

6. Click Next >>. ActivityHD prompts you to confirm your action.

   

7. Click Yes. ActivityHD notifies you of the results.

   

8. Click Finish.

A merged adjustment which is found to be incorrect can be voided. When you select "Void" on an adjustment, a reversal adjustment is automatically created on the statement.

1. In the Navigation pane, highlight the Bank Reconciliation > Statements folder.
2. In the HD view, highlight and double-click the statement with an adjustment you need to void to open it in the Bank Statement window.

3. Select the Adjustments tab.

   

4. In the Adjustments table, locate the adjustment to void.

5. In the Void column of the adjustment you need to void, select "Void". A reversal adjustment is created automatically and added to the table.

   

6. In the Date column of the reversal record, enter the appropriate date for the reversal transaction if the default date is not correct.

   Note

   Dates on reversals are the only adjustment dates which can be later than the GL date. This flexibility allows the reversal to occur in a different accounting period if needed.

7. Save your changes.

When you close a bank statement, ActivityHD will not allow further changes to the statement. Once a bank statement is closed:

• The bank statement cannot be deleted.
• Transactions on the statement cannot be reconciled or unreconciled.
• You will receive an error if you try to delete the last register control that defines the GL account associated with the transactions on the statement.

To close a bank statement, open the statement record, mark the Closed checkbox, and save your changes.

If you must make changes to a closed statement, clear the Closed checkbox, make your changes, then reset the Closed flag.

Click the blue dot to the right of a field in the Statement Totals or GL Balances sections of the image below to learn what the value in the field represents.

Reconciliation indicator

This banner indicates the difference in the GL balance and the bank balance. The banner disappears when the statement is reconciled.

Beginning Balance (Bank)

The beginning balance from the actual bank statement.

Total Deposits (Bank)

The total amount of deposits from the actual bank statement.

Total Charges (Bank)

The total amount of charges from the actual bank statement.

Ending Balance (Bank)

The statement ending balance calculated based on the beginning balance, total deposits, and total charges entered. This field is shaded yellow until the statement is reconciled.

Current GL Balance (Merged)

The total of all bank transactions, cleared or not, as of the GL date.

Outstanding Deposits (Merged)

The total of all outstanding deposit transactions on the GL date that were outstanding as of the bank statement date.

Outstanding Charges (Merged)

The total of all outstanding charge transactions on the GL date that were outstanding as of the bank statement date.

Compare to Bank Balance (Merged)

The adjusted reconciliation balance calculated from the ending book balance, outstanding deposits, and outstanding charges. The reconciliation is complete when this value equals the statement ending balance. This field is shaded yellow until the statement is reconciled.

Beginning Balance (Reconciled)

The beginning balance of reconciled entries as of the current bank statement.

Total Deposits (Reconciled)

The total amount of deposits reconciled to the current bank statement thus far.

Total Charges (Reconciled)

The total amount of charges reconciled to the current bank statement thus far.

Ending Balance (Reconciled)

The calculated ending balance based on the deposits and charges reconciled to the current bank statement thus far. This field is shaded yellow until the statement is reconciled.

GL Balance (Unmerged)

The total of unmerged bank transactions as of the GL date.

Outstanding Deposits (Unmerged)

The total of all unmerged deposits on the GL date.

Outstanding Charges (Unmerged)

The total of all unmerged charges on the GL date

Transaction Balance (Unmerged)

The unmerged transaction balance calculated from the unmerged GL balance, unmerged deposits, and unmerged charges. The unmerged entries balance when this value equals zero. This field is shaded yellow until the statement is reconciled.

Beginning Balance (Difference)

The difference in the bank's beginning balance and the book beginning balance.

Total Deposits (Difference)

The difference in the bank's total deposits for the statement and the deposits reconciled to the statement thus far.

Total Charges (Difference)

The difference in the bank's total charges for the statement and the charges reconciled to the statement thus far.

Ending Balance (Difference)

The difference in the bank's ending balance for the statement and the ending balance calculated from transactions reconciled to the statement thus far. This field is shaded yellow until the statement is reconciled.

GL Balance (Total)

The total of all bank transactions plus unmerged bank transactions as of the GL date.

Outstanding Deposits (Total)

The total of all outstanding deposits plus unmerged deposits on the GL date that were outstanding as of the bank statement date.

Outstanding Charges (Total)

The total of all outstanding charges plus unmerged charges on the GL date that were outstanding as of the bank statement date.

Balance (Total)

The total of the current bank balance plus the unmerged transaction balance. When the statement is reconciled, this total should equal the current bank balance. This field is shaded yellow until the statement is reconciled.