PeopleSoft Banks Setup and Processing 9.1 PeopleBook

Performing Book to Bank Reconciliation

This chapter provides an overview of book to bank reconciliation, lists prerequisite tasks, and discusses how to perform book to bank reconciliation.

Understanding Book to Bank Reconciliation

Book-to-bank reconciliation compares bank-reported balances in the bank statement against the system's general ledger bank balance for a specified fiscal period. . The Book to Bank Reconciliation process (TR_BTB_CALC) is normally performed as part of the periodic PeopleSoft General Ledger Close process after you run bank reconciliation and have posted all subsystem transactions. Discrepancies between the bank balance and ledger balance are due to:

Time difference items that affect the bank statement, such as deposits in transit or unreconciled checks. These are transactions that are booked in the system but not yet acknowledged by the bank.
First notice items, such as fees or interest accrual amounts. These are transactions noted on the bank statement but not yet booked into the system.

The book to bank reconciliation functionality integrates with General Ledger, Payables, Expenses, Receivables, and Treasury applications. The Book to Bank Reconciliation Application Engine program identifies whether a posted journal line transaction has been reconciled. If a transaction has not been reconciled or has not been posted to the general ledger, then this information appears in the Reconciliation Data group box on the Book to Bank Reconciliation Details page, categorized by type. Unreconciled transactions (such as bank adjustments or unbooked transactions) appear on the Ledger Balance side, while unreconciled transactions (such as payments in transit, general ledger adjustments, or deposits in transit) appear on the Bank Statement Balance side.

The Book to Bank Reconciliation process leverages the period end close functionality of PeopleSoft General Ledger, which prevents posting of journal entries to a closed fiscal period. This means that transactions that are posted to a prior general ledger period are not available to the Book to Bank Reconciliation process. In addition, the system does not include transactions that are posted to adjustment periods in the Book to Bank Reconciliation process. If you need to create adjustment period entries, you must access PeopleSoft General Ledger.

This section also discusses:

Prerequisites
Book-to-bank reconciliation.

Prerequisites

Before running the Book to Bank Reconciliation process, verify that you have correctly configured your general ledger accounts and external bank accounts. Note the following configuration considerations:

Define your external bank accounts so that there are no duplicate general ledger business unit and general ledger account combinations.
Do not define the same bank ID and account number multiple times either under the same setID or under different setIDs. This type of setup causes reconciliation issues.

Note. There can be up to three ledger cash accounts per external bank account (one each for Payables, Receivables, and Treasury applications) as illustrated in this table:

Bank	Account	GL Business Unit	Ledger Type	GL Account
USBK1	0001	BU001	A - AP Cash	111111
USBK1	0001	BU001	C - AR Cash	111111
USBK1	0001	BU001	H - TR Cash	111111
USBK1	2222	BU001	A - AP Cash	222222
USBK1	2222	BU001	C - AR Cash	333333
USBK1	2222	BU001	H - TR Cash	444444
USBKZ	WXYZ	BUXXX	A - AP Cash	111111
USBKZ	WXYZ	BUXXX	C - AR Cash	222222
USBKZ	WXYZ	BUXXX	H - TR Cash	333333

Ensure that the same currency code that you specified for the general ledger account is used by the bank account.

If you configure the bank account with a different currency code than the general ledger account, the bank account displays balances that are revalued in the base currency of the general ledger account in the Book to Bank Reconciliation component. This might result in currency rounding errors.
Run the Journal Generator and Journal Edit and Journal Post processes in General Ledger.

Book to Bank Reconciliation

Book to Bank Reconciliation process is used only with banks that are configured for the Automatic or Semi-manual reconciliation process. You run the Book to Bank Reconciliation Application Engine program after the Automatic or Semi-manual reconciliation process has completed. The Book to Bank Reconciliation Application Engine program does not work with the Manual Reconciliation process.

The Book to Bank Reconciliation process consists of these steps:

Prerequisites

Perform all activities listed in the Prerequisites section of this chapter to ensure that the Book to Bank Reconciliation Application Engine program runs correctly.
Access the Select Book to Bank Statements component.
1. Search for and select the bank statements for a specified fiscal period that need book to bank reconciliation.
2. Click the Select and Calculate button to run the Book to Bank Reconciliation Application Engine program for the selected bank statements. You can access the Process Monitor to follow this processing and review any messages concerning the processing.
Access the Book to Bank Reconciliation component.
1. Search for the bank statements for which you ran the Book-to Bank Reconciliation Application Engine in the previous step.
2. Review the status of each bank statement, which can be:
  
  New: This status indicates that the statement is new, and no balances or adjustments have been saved.
  
  Awaiting Confirmation: This status indicates that some balance and adjustment work has been saved, but the statement has not been confirmed.
  
  Calculating: This status indicates that the TR_BTB_CALC process is running to extract the adjustment data and recalculate the balances.
  
  Confirmed: This status indicates the statement has been finalized as confirmed.
3. Click the Details icon to access the Book to Bank Reconciliation Details page, where you can view the Book to Bank Reconciliation Bank Statement and Ledger Balances and view and edit any adjustments.
4. If the Book to Bank Reconciliation is in balance (book to bank balance difference is zero) and you know there is nothing outstanding, click the Confirm button, which changes the status of the statement to Confirmed.
5. If discrepancies exist, after researching them and making possible adjustments, return to the Book to Bank Reconciliation page and select the Recalculate link to run the Book to Bank Reconciliation Application Engine program again for the selected statement.
6. Review the Book to Bank Reconciliation Details page each time you recalculate the Book to Balance Application Engine program to check that the bank statement and general ledger are balanced. Click the Confirm button once you are satisfied that the total adjusted bank balance and the total adjusted ledger balance are in balance. Once the Book to Bank Reconciliation statement is confirmed, you can continue with the general ledger Closing process.
  
  Important! You can select the Recalculate link any time after the original Book to Bank Reconciliation Application Engine program has been run as long as the statement's status is New or Awaiting Confirmation.
7. Click the Report button to generate the Book to Bank Reconciliation report for the specific bank statement.
8. Select the Event Log link to view event tracking, which identifies the user and date and time that the original Book to Bank Application Engine program was run, the user and date and time that the book to bank reconciliation was confirmed, and the user and date and time that the confirmed book to bank reconciliation was overridden.
You may find it necessary to override a book to bank reconciliation that has a status of Calculating or Confirmed. To change either of these statuses for a bank statement to the status Awaiting Confirmation, access the Override Book to Bank Status component. You select the value Awaiting Confirmation in the New Status drop-down menu and save the page. The book-to-bank reconciliation Status for that bank statement is changed to Awaiting Confirmation. This enables you to make any necessary changes to the data and click the Recalculate link on the Book to Bank Reconciliation page to run the Book to Bank Reconciliation Application Engine program again. Each time you override a calculating or confirmed book to bank reconciliation, it is tracked in the Event Log.

Possible reasons for overriding the reconciliation include these:
- The bank sent you a corrective statement.
- You find it necessary to book an entry in the general ledger.

Performing Book to Bank Reconciliation

This section discusses how to:

Select statements for book to bank reconciliation.
Manage book to bank reconciliation statements.
Review book to bank reconciliation details.
Override the book to bank reconciliation status.

Pages Used to Perform Book to Bank Reconciliation

Page Name	Definition Name	Navigation	Usage
Select Book to Bank Statements	BNK_BTB_STMT_SEL	Banking, Reconcile Statements, Select Book to Bank Statements	Select bank statements for Book to Bank reconciliation. Schedule the process to perform Book to Bank data extraction and balance calculations.
Book to Bank Reconciliation	BNK_BTB_REC_MGR	Banking, Reconcile Statements, Book to Bank Reconciliation	Search for statements marked ready for Book to Bank reconciliation, review balance details, and schedule the process to perform Book to Bank data extraction and balance calculations.
Book to Bank Reconciliation Details	BNK_BTB_HDR	Click Details icon in the Available Accounting Periods grid on the Book to Bank Reconciliation page.	Review your company's general ledger balances against bank-reported account balances in the bank statement. You can also print a report of your Book to Bank adjustments.
Bank Balance Entry	BANK_BALANCE_ENTRY	Click the View Bank Statement icon on the Book to Bank Reconciliation Details page.	Review the bank balances and funds availability.
Bank Transaction Entry	BNK_STMT_ENTRY	Click theView Bank Statement icon on the Book to Bank Reconciliation Details page and select the Bank Transaction Entry tab.	Review the bank transaction information, the bank reconciliation information, and the bank addenda information.
Payments in Transit	BNK_BTB_DET_SEC	Click Payments in Transit icon on the Book to Bank Reconciliation Details page.	Specify which payment transactions in transit to include in the bank adjustment subtotal amount.
Deposits in Transit	BNK_BTB_DET_SEC	Click the Deposits in Transit icon on the Book to Bank Reconciliation Details page.	Specify which deposit transactions in transit to include in the bank adjustment subtotal amount.
GL Adjustments (general ledger adjustments)	BNK_BTB_DET_SEC	Click the GL Adjustments icon on the Book to Bank Reconciliation Details page.	Specify which general ledger adjustments to include in the bank adjustment subtotal amount.
Ledger Balance	BNK_BTB_LED_SEC	Click Ledger Balance icon on the Book to Bank Reconciliation Details page.	View ledger balance and bank account ChartField information. See Inquiry Overview. See Viewing Ledger Summary Balances.
Unbooked Fees and Interest	BNK_BTB_DET_SEC	Click the Unbooked Fees and Interest icon on the Book to Bank Reconciliation Details page.	Specify which unbooked fees and interest transactions to include in the general ledger subtotal amount.
Unbooked Payments	BNK_BTB_DET_SEC	Click the Unbooked Payments icon on the Book to Bank Reconciliation Details page.	Specify which unbooked payment transactions to include in the general ledger subtotal amount.
Unbooked Deposits	BNK_BTB_DET_SEC	Click the Unbooked Deposits icon the Book to Bank Reconciliation Details page.	Specify which unbooked deposit transactions to include in the general ledger subtotal amount.
Bank Adjustments	BNK_BTB_DET_SEC	Click the Bank Adjustments icon on the Book to Bank Reconciliation Details page.	Specify which bank adjustments to include in the general ledger subtotal amount.
Book to Bank Notes	BNK_BTB_FREEFORM	Click the Book to Bank Notes icon the Book to Bank Reconciliation Details page.	Enter notes to account for a book-to-balance reconciliation difference.
Book to Bank Reconciliation report	RUN_TRC4090	Click the Report button on the Book to Bank Reconciliation Details page.	Generate a report of your book to bank reconciliation activities for a bank statement.
Override Book to Bank Status	BNK_BTB_REC_MGR	Banking, Reconcile Statements, Override Book to Bank Status	Override the book to bank status Confirmed for a given bank statement.

Selecting Statements for Book to Bank Reconciliation

Access the Select Book to Bank Statements page (Banking, Reconcile Statements, Select Book to Bank Statements).

Bank ID

Select the bank that the bank statements, which are ready for book to bank reconciliation, are associated.

Account # (account number)

Select the account number of the selected bank that the bank statements, which are ready for book to bank reconciliation, are associated.

From Date and Through Date

You can override these dates to display any accounting periods containing statements that have not been book to bank reconciled.

Business Unit

Displays the GL business unit specified for the selected bank account.

Base Currency

Displays the currency specified for the GL business unit specified for the selected bank account.

Ledger

Displays the primary ledger in the ledger group defined for the GL business unit specified for the selected bank account.

Bank Currency

Displays the currency specified for the selected bank account.

Search

Click this button to display any book to bank statements, which have not been reconciled, in the Available Accounting Periods grid.

Available Accounting Periods Grid

A list of one or more accounting periods containing bank statements, which have not been scheduled for book to bank reconciliation appears in this grid.

Select	Select the check box for each of the bank statements for which you want run the Book to Bank Reconciliation process. If you select more than one statement for a fiscal year and accounting period, the system designates the statement with the highest Statement ID number as the statement from which it obtains the closing balance. This logic assumes that the statement with the highest Statement ID is the last statement for the period.
Statement ID	Identifies the bank statement that requires book to bank reconciliation for a specific fiscal year and accounting period.
Statement Date	Displays the date the bank statement was created.
Load Date and Time	Displays the date and time the bank statement transactions were loaded for reconciliation.
Cycle Status	Displays the current status of the reconciliation for each bank statement listed. This field displays one of these statuses: Ready The statement has been loaded and reconciliation processes have been performed on the statement. Complete The statement has been loaded and all transactions have been reconciled.
Select and Calculate	Select this button to create a process request, which schedules the Book to Bank Reconciliation Application Engine (TR_BTB_CALC) to run. Once the process runs, it performs the data extraction and balance calculations.
Process Monitor	Click this link to access the Process List page, which enables you to track the progress of the book to bank reconciliation processing by means of the process Instance.

Managing Book to Bank Reconciliation Statements

Access the Book to Bank Reconciliation page (Banking, Reconcile Statements, Book to Bank Reconciliation).

Search Parameters

The search parameters are identical to the search parameters used for the Select Book to Bank Statements section.

See Selecting Statements for Book to Bank Reconciliation.

Available Accounting Periods

Statement ID	The bank statement ID appears in this field. You can override this value to identify another bank statement.
Status	Displays the current status of the bank statement with regards to the Bank-to-Bank Reconciliation process. The statuses are: New This status indicates the statement is new, and no balances or adjustments have been saved. Awaiting Confirmation This status indicates some balances and adjustment work has been saved, but the book to bank reconciliation statement has not been confirmed. Calculating This status indicates that the TR_BTB_CALC process is running to extract the adjustment data and recalculate the balances. Confirmed This status indicates the book to bank reconciliation statement has been finalized as confirmed. Note. The Recalculate link is not available for bank statements with a status of Confirmed.
Recalculate	This process deletes any previously saved data and runs the Book to Bank Reconciliation Application Engine (TR_BTB_CALC) again, where it recalculates new balances using the original statement balance amounts with any added adjustment data to update any balance data that you changed on the Book to Bank Reconciliation Details page. Note. The Recalculate link is not available for selection for statements with a status of Calculating or Confirmed.
	Click the Details icon to access the Book to Bank Reconciliation Details page, where you can review and reconcile balances before and after each time you run the Book to Bank Reconciliation Application Engine program). Note. The Details icon is not available for selection for statements with a status of Calculating.
Refresh	Click this button to refresh the Available Accounting Periods grid.
Process Monitor	Click this link to track the progress of the Book to Bank Reconciliation Application Engine program after selecting the Recalculate button.

Reviewing Book to Bank Reconciliation Details

Access the Book to Bank Reconciliation Details page (click Details on the Book to Bank Reconciliation page).

Reconciliation Data

Bank Statement Balance	Displays the Closing Balance (Statement Code 015) on the bank statement that occurs within the displayed fiscal year and accounting period Click the Bank Statement Balance icon to access the Bank Balance Entry page. This page displays the details concerning the statement bank balance and the funds available based on the balance. You can select the Bank Transaction Entry tab to display a list of the transactions that comprise the bank statement balance, along with transaction information, reconciliation information, and addenda information details. The bank statement balance appears as a link. Click this link to view currency revaluation information (when enabled). The system displays this link when the bank account's base currency and the general ledger account base currencies are different.
Payments in Transit	Displays the total of all disbursements that are not yet reconciled (outstanding transactions not yet presented to the bank but recorded in the system). It also includes manual accounting entries (created in Treasury) that have been finalized and posted to a ledger. This amount reduces the bank statement balance, which appears in the Bank Adjustments Subtotal field. Click the Payments in Transit icon to access the Payments in Transit page, where you can review the transaction details of each of the payments in transit. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction and exclude the transaction from the Bank Adjustments Subtotal amount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
Deposits in Transit	Displays the total of all the deposits that are booked into the system but not yet acknowledged by the bank. This amount increases the bank statement balance, which appears in the Bank Adjustments Subtotal field. Click the Deposits in Transit button to access the Deposits in Transit page, where you can review transaction details for each of the deposits in transit. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the Bank Adjustments Subtotal amount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
GL Adjustments (general ledger adjustments)	Displays the total of all posted general ledger transactions that have transaction dates that occur before or on the general ledger period end date. Click the GL Adjustments button to access the GL Adjustments page, where you can review transaction details for each adjustment. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the Bank Adjustments Subtotal amount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
Revaluation Amount	Enter the currency revaluation amount to account for any currency conversion rounding errors. Use this field only if the bank account's base currency is different than the general ledger business unit's base currency. Important! Any changes that you make manually are lost when the system recalculates the balances and adjustments.
Bank Adjustments Subtotal	Displays the total of all unposted bank transactions that exist in the bank statement but not in the system, and which have transaction dates that occur before or on the general ledger period end date.
Total Adjusted Bank Balance	Displays the sum of the values in the Bank Statement Balance and the Bank Adjusted Subtotal fields.
Ledger Balance	Displays the system side ledger balance for the bank account. The balance as of date is determined by the ledger's period end date. Click the Ledger Balance button to access the Ledger Balance page, where you can review the ChartField distribution amounts that comprise the total ledger balance.
Unbooked Fees and Interest	Displays the total of all bank transactions not yet booked in the system and which have transaction dates that are on or before the bank statement date. Click the Unbooked Fees and Interest button to access the Unbooked Fees and Interest page, where you can review transaction details. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the GL Adjustments Subtotalamount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
Unbooked Payments	Displays the total of all unposted disbursements that exist in the bank statement but are not in the system, and which have transaction dates that are on or before the bank statement date. Click the Unbooked Payments button to access the Unbooked Payments page, where you can review transaction details. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the GL Adjustments Subtotalamount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
Unbooked Deposits	Displays the total of all unposted deposits that exist in the bank statement but are not in the system, and which have transaction dates that are on or before the bank statement date. Click the Unbooked Deposits button to access the Unbooked Deposits page, where you can review transaction details. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the GL Adjustments Subtotalamount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
Bank Adjustments	Displays the total of the values in the Payments in Transit, Deposits in Transit, and GL Adjustments fields. The displayed total includes: Any unreconciled bank statement transaction that has a Bank Adjustment (BA) reconciliation transaction code. Any unreconciled bank statement transaction that is not categorized in the Unbooked Fees and Interest, Unbooked Payments, or Unbooked Deposits totals. Click the Bank Adjustments icon to access the Bank Adjustments page, where you can review transaction details. The transactions are automatically selected. Remove the check mark from the Select check box associated with a transaction to exclude the transaction from the GL Adjustments Subtotalamount on the Book to Bank Reconciliation Details page, and from the book to bank reconciliation calculations.
GL Adjustments Subtotal (general ledger adjustments subtotal)	Displays the total of the values in the Unbooked Fees and Interest, Unbooked Payments, Unbooked Deposits, and Bank Adjustments fields.
Total Adjusted Ledger Balance	Displays the sum of the values in the Ledger Balance and GL Adjustments Subtotal fields.
Book to Bank Difference	Displays the sum of the values in theTotal Adjusted Bank Balance and Total Adjusted Ledger Balance fields. Click the Book to Bank Notes button to access the Book to Bank Notes page, where you can add comments.
Confirm	Click to confirm that the Book to Bank Reconciliation process for this specific bank statement and fiscal period is complete. Then save the page. The Status field (in both the Book to Bank Status group box on the Book to Bank Reconciliation Details page and in the Available Accounting Period grid on the Book to Bank Reconciliation page) changes to Confirmed. This prevents other users from editing this particular reconciled statement. Note. You should carefully analyze your book to bank reconciliation results before confirming a statement.
Report	Click to generate the Book to Bank Reconciliation report.
Return to previous page	Click to access the Book to Bank Reconcile page.
Event Log	Click this link to access the Event Log page, which is used to track the original book to bank reconciliation process, confirmation of the book to bank reconciliation process, and any overrides of a calculating or confirmed book to bank reconciliation.

Overriding the Book to Bank Reconciliation Status

Access the Override Book to Bank Status page. (Banking, Reconcile Statements, Override Book to Bank Status)

Search Parameters

The search parameters are identical to the search parameters used for the Select Book to Bank Statements section.

See Selecting Statements for Book to Bank Reconciliation.

Available Accounting Periods Grid

Status	Displays the current status of the book to bank reconciliation statement.
New Status	Select a status of Awaiting Confirmation from the drop-down list, when the current Status for the book to bank reconciliation statement is either Calculating or Confirmed. If the current Status field contains value of either New or Awaiting Confirmation, the New Status drop-down menu is not enabled.
User ID	Displays the ID of the user, who is accessing the Override Book to Bank Status component and page. Important! Your organization can limit access to this component and the ability to change the status of the book to bank reconciliation statement to users who are assigned to an administrator role using PeopleSoft Security.
Date Time	Displays the date and time the status was changed. Note. You can click the Event Log link on the Book to Bank Reconciliation Details page to view a history of the original book to bank processing, any confirmations, and any overrides for each bank statement.

Bank ID	Select the bank that the bank statements, which are ready for book to bank reconciliation, are associated.
Account # (account number)	Select the account number of the selected bank that the bank statements, which are ready for book to bank reconciliation, are associated.
From Date and Through Date	You can override these dates to display any accounting periods containing statements that have not been book to bank reconciled.
Business Unit	Displays the GL business unit specified for the selected bank account.
Base Currency	Displays the currency specified for the GL business unit specified for the selected bank account.
Ledger	Displays the primary ledger in the ledger group defined for the GL business unit specified for the selected bank account.
Bank Currency	Displays the currency specified for the selected bank account.
Search	Click this button to display any book to bank statements, which have not been reconciled, in the Available Accounting Periods grid.