Bank Reconciliation in tally


Reconciling the company’s bank books with the banker’s statement is a regular task of accounting. In Tally.ERP 9, Reconciliation of Bank Books facilitates the following:

Ability to check back the correctness of reconciliation
Tally.ERP 9 uses Bank Date to mark the voucher. For instance, if you issue a cheque on 8th April and your bank clears it on 19th April, you would set the Bank Date for the voucher as 19th April. This means that when you need to check back later, whether the entry made by you is correct, you will only need to verify the bank statement of the 19th.

Recovering the reconciliation of any date
This is of crucial importance in Auditing. The Bank Reconciliation is one of the pre-requisites of auditing and verification of the correctness of accounts at the year end. However, it is not a real-time task, meaning auditors do not do it on the first day of the next year.

Note: For e.g., a reconciliation made on 31st March, should be viewable even in August, by when almost all the cheques would have subsequently been marked Reconciled. Tally.ERP 9 provides you with a facility of achieving this also.

Bank accounts may have a different Starting Date for reconciliation purposes. When you create a bank account, you are prompted to give an Effective Date for Reconciliation. Normally, this would be the Books Beginning from date itself.

However, you could have imported data from a previous version of Tally or from any other system (where the reconciliation process was not available or was different). In that case, you may not want to reconcile the bank account with your bank statements from the very beginning. Give the date from which you want the reconciliation to be done. Once you do this, entries made earlier than this date would not appear for reconciliation, but would be shown as a reconciled Opening Balance.

A quick experiment with Reconciliation will show you what it all means. Here is how you go about it:

1. Bring up the monthly summary of any bank book.

(You can choose a bank book from any of the following: Balance Sheet, Trial Balance or Display > Account Books > Cash/Bank Books)

2. Bring the cursor to the first month (typically April), and press Enter. This brings up the vouchers for the month of April. Since this is a bank account, there is an additional button F5: Reconcile on the button bar, press to the right. Press F5 to reconcile.
Reconciling the company’s bank books with the banker’s statement is a regular task of accounting. In Tally.ERP 9, Reconciliation of Bank Books facilitates the following:

Ability to check back the correctness of reconciliation
Tally.ERP 9 uses Bank Date to mark the voucher. For instance, if you issue a cheque on 8th April and your bank clears it on 19th April, you would set the Bank Date for the voucher as 19th April. This means that when you need to check back later, whether the entry made by you is correct, you will only need to verify the bank statement of the 19th.

Recovering the reconciliation of any date
This is of crucial importance in Auditing. The Bank Reconciliation is one of the pre-requisites of auditing and verification of the correctness of accounts at the year end. However, it is not a real-time task, meaning auditors do not do it on the first day of the next year.

Note: For e.g., a reconciliation made on 31st March, should be viewable even in August, by when almost all the cheques would have subsequently been marked Reconciled. Tally.ERP 9 provides you with a facility of achieving this also.

Bank accounts may have a different Starting Date for reconciliation purposes. When you create a bank account, you are prompted to give an Effective Date for Reconciliation. Normally, this would be the Books Beginning from date itself.

However, you could have imported data from a previous version of Tally or from any other system (where the reconciliation process was not available or was different). In that case, you may not want to reconcile the bank account with your bank statements from the very beginning. Give the date from which you want the reconciliation to be done. Once you do this, entries made earlier than this date would not appear for reconciliation, but would be shown as a reconciled Opening Balance.

A quick experiment with Reconciliation will show you what it all means. Here is how you go about it:

1. Bring up the monthly summary of any bank book.

(You can choose a bank book from any of the following: Balance Sheet, Trial Balance or Display > Account Books > Cash/Bank Books)

2. Bring the cursor to the first month (typically April), and press Enter. This brings up the vouchers for the month of April. Since this is a bank account, there is an additional button F5: Reconcile on the button bar, press to the right. Press F5 to reconcile.
3. The display goes to the Reconciliation mode, which can be edited. The primary component of the current screen is the column for Bankers Date.

4. The Reconciliation found at the bottom of the screen shows:

Balance as per Company Books

Amounts not reflected in Bank

Balance as per Bank

The Balance as per Company Books reflects the balance as on the last date (in the example, it is 30th April).

The Amounts not reflected in Bank are the debit and credit sums of all those vouchers, whose Bank Date is either BLANK, or LATER than 30-Apr (i.e. these vouchers have not yet been reflected in the bank statement).

The Balance as per Bank is the net effect of the Book Balance offset by the amounts not reflected in the Bank – which must be equal to the balance in the bank statement

Note: Some discrepancies may persist due to entries made in the bank statement, which you have not yet entered in your books. You would reconcile these manually, and print your reconciliation.

As you mark the individual vouchers by setting the Bank Date, you will notice that the Reconciliation at the bottom of the screen keeps updating the changes. Once this process is complete, press Ctrl + A or Enter as many times as necessary to skip over the unmarked vouchers and accept the screen.

The next time you opt for reconciliation, the screen displays only those vouchers that remain un-reconciled. You can also display vouchers that are already marked as reconciled, in case you need to edit the marking, by using F12: Configure

Set Show Reconciled Vouchers also to Yes to see the reconciled vouchers.

Note: It is not possible to reconcile opening balance and can be done only with available physical transactions.

Set Allow back dated Reconciliation to Yes to enter bank dates which are lesser than the Voucher date.

Press Alt+P or click on the Print button to print your reconciliation report
See the below video clip how to reconcile the

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