How You Manually Reconcile a Bank Statement

Manual bank statement reconciliation involves selecting bank statement lines and system transactions to be reconciled together. During reconciliation if a system transaction hasn't been cleared the reconciliation process clears the transaction first, and then reconciles it.

Oracle Fusion Cash Management supports manual reconciliation for all matching scenarios; one to one, one to many, many to one, and many to many. You are allowed to reconcile across bank statements from the same bank account.

Note: The maximum number of system transactions for processing in the page is 10,000.

Banks sometimes make mistakes by depositing or withdrawing incorrect amounts to bank accounts. These bank errors show up on bank statements, along with the corrections and adjustments to those errors. Banks resolve errors using two methods: reversal and adjustment.

Reconciling Corrections and Adjustments to Bank Errors

Correcting bank errors using the reversal and adjustment method are described in the following example:

A check was generated for $100.00, but the bank recorded this payment as $10.00 by mistake. On your bank statement, you see an entry of a $10.00 payment.

Using the reversal method, the bank reverses the whole error transaction amount so that the error entry and the reversal entry net out to zero. Then, the bank makes another transaction entry for the correct transaction amount. In this example, a reversal entry of a $10.00 receipt is created to offset the original error entry. An additional correction entry is created as a $100.00 payment. With the reversal method, the error and reversal statement lines as well as the added correction entry line should all be reconciled to the check transaction.

Using the adjustment method, the bank simply creates an additional transaction entry to make up for the difference between the original transaction amount and the error entry. In this example, the bank generates an additional adjustment entry of a $90.00 payment. The adjusted amount of $90.00 is the difference between the original error amount of the $10.00 payment and the correct amount of the $100.00 payment. With the adjustment method, the error line and adjustment line should be reconciled to the check transaction.