Understanding Book to Bank Reconciliation

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.

• 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 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:

1. Prerequisites

   Perform all activities listed in the Prerequisites section of this topic to ensure that the Book to Bank Reconciliation Application Engine program runs correctly.

2. 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.

3. 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.

4. 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.