When you first navigate to the Reconcile Bank Statement page via the Accounting tab, you will see several options.
This is where you select the financial account to reconcile. Reconciliation is done on a financial account by financial account basis and is independent of the filers. Only transactions that are part of that specific financial account you select will show here.
Select the ending date of the bank statement you are reconciling. Along with the financial account selected, only transactions equal to and older than this date will appear. So for example, if you were running a reconciliation for a bank statement ending 12/31/2018, any transactions dated 1/1/2019 or newer will not show.
This is where you enter the starting balance of the bank statement for that month. If there was prior activity in the account that is not in ISP, that is factored into the number entered here.
This is where you enter the ending balance as indicated on the bank statement you are reconciling.
Once the initial settings have been created, click the Generate button. That will calculate the difference between the starting and ending balance and pull any transactions that are older than the Closing date entered.
Most importantly, the overall goal with the reconciliation is to get the difference between the starting and ending balances in ISP to be zero. That indicates all transactions affecting the actual bank statement have been identified. As you go through the reconciliation, the transactions selected from the list of Outstanding Transactions will add or subtract from the difference between the starting and ending balances, as indicated in the DIFFERENCE column. If you need to edit any of the initial settings (changing the starting balance or even the financial account, for example), click the Edit Statement Details button in the STATEMENT SUMMARY section.
When working on a bank reconciliation in ISP, the system will not allow a reconciliation to be applied until the Difference shows $0. Until that happens, you can click Continue Later to save the work you have done up until that point.
While it’s not best practices, in certain situations you can include an old transaction in the current reconciliation. The reconciliation system only requires that the ending balance be $0. It will warn you if the starting balance doesn’t match but it won’t prevent you from finishing your reconciliation.
If you receive a message stating your starting balance doesn’t match what was previously marked as cleared, your next best step is to review changed reconciled transactions. In other words, transactions that may have been edited since your last reconciliation. To view these transactions, generate the Changed Reconciled Transactions report located on the Compliance Tools page under the Reports tab.