Understanding Bank Reconciliation Processing
PeopleSoft enables you to reconcile transactions using a variety of reconciliation processes. After you have reconciled bank statement transactions, you then use the various inquiry pages to view reconciled and unreconciled transactions and resolve reconciliation exceptions.
If you receive the bank statement file electronically, you can process reconciliation with the Automatic Reconciliation process. If not, you can process reconciliation only by using manual reconciliation or by entering the bank statement information online on the Bank Balance Entry page (BANK_BALANCE_ENTRY) and then using automated or semi-manual reconciliation.
If you need to reconcile external transactions, you can use the External Transaction pages to enter the transactions online. You can also load them electronically. Then, you can add this transaction source as a reconciliation record and perform manual, semi-manual, or automated reconciliation.
When you finish reconciling a bank statement automatically, you might have exceptions, which are transactions that did not match. These transactions are generally coded NTF, for transaction not found. You need to resolve the exceptions so that the transactions have a reconciliation cycle status of Complete.
Depending on the reconciliation method you use, you can resolve exceptions in a number of ways:
If you use automatic reconciliation, you can set up reconciliation amount tolerances functionality. This functionality automatically reconciles amounts of a certain defined discrepancy, then creates journal entries and sets the reconciliation status of the exception from UNR to REC.
If you use Cash Management, you can also implement bank statement accounting functionality. This functionality is similar to the reconciliation tolerances functionality and works as a second filter by searching to reconcile exceptions that match predefined criteria.
If you use semi-manual reconciliation, you can also use bank statement accounting functionality, or opt to manually enter journal entries to resolve differences.
If you use manual reconciliation you must manually enter journal entries for differences.
Multicurrency Situations
To work with reconciliation situations in which you handle more than one currency, you can define tolerance amounts to reconcile transactions within the set tolerance. The automatic Bank Reconciliation process (FSPRECON) converts system-side transactions to the bank account currency as defined on the external accounts page.
The system uses the decimal positions definition for the currency code to determine how to round amounts. Tolerance exceptions show in semi-manual reconciliation (reconciled system side) in addition to the reconciled transactions. The delivered reference ID for tolerance exceptions is bank statement processing (BSP) plus a sequential number (this is in the auto numbering definition). Under semi-manual reconciliation, if amounts are not the same, you cannot reconcile them. If reference IDs do not match, they appear as exceptions. To reconcile transactions with an AMT (amount exception) status, you must either enter an adjustment entry to match the amount in question or increase the amount tolerance for the next automated reconciliation run.