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.

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