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 (No Transactions Found). You need to resolve the exceptions so that the bank statement has 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 external transactions 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 external transactions to resolve differences.