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    Cash Management :Bank Statement with Reversal of Payment
    Topic posted November 15, 2018 by AmolBronze Trophy: 5,000+ Points, last edited January 30, 2019, tagged Cash Management, Financials 
    404 Views, 7 Comments
    Cash Management :Bank Statement with Reversal of Payment

    How to reconcile a bank statement having

    A) One single line of 10,000 dollars corresponding to a payment file

    B) Credits(Reversals) for rejecting few payments amounting to say -2000 dollars.  ( Net payment made by bank = 10,000 - 2000 = 8000 dollars)

    Rejected Payments have been voided in the system and hence - only 8000 Dollar worth of payments ia available for reconiling with 10,000 dollar bank statement line.



    • Felix Beaudoin

      Hey Amol!
      Is that reversal not anywhere at the bank level? If it were, you could manually reconcile by using both the 10,000 line and that -2,000 line to match your 8,000 system line. If not, it seems like you would have two options:
      1- Manage Bank Statement Reconciliation Thresholds - assign a threshold of 2000 dollars, configure it at the bank account level (make sure to have a reconciliation differences account) and then reconcile your lines. Once reconciled, revoke your threshold.
      2- Create a journal entry with the corresponding accounting entries where the Bank Account's cash account is one of the entries and the other is the account where you would like that reversal value to end up in. You could then reconcile with that journal line in CM as long as the Cash string 100% matches the bank account's string.

      If none of these seem like a good option, can you share more details around this scenario?

    • Rohan Kamat

      Hi Amol

      Not sure , but you need to check with the Bank to see if they can provide split of the Payments . Usually bank charge extra fees to detail out the Payment lines in a combined Payment File .

      In this scenario, has the bank paid 10000 or 8000 ?

      Thanks and Regards

      Rohan S Kamat



      • Felix Beaudoin

        Agree with you here Rohan. Seems curious that the bank would not have the correct amounts available for the business to reconcile.

    • alok

      Hi Amol,

      In case bank has paid 8000 then why would bank statement reflect 10000 alone? There has to be another line to reflect -2000 or a net entry of 8000 in bank statement line.



      • Felix Beaudoin

        Completely agree with you Alok! The options I provided above are really just in case the bank does not have these lines which would be very surprising.

    • Amol

      We reconciled it this way-


      One the bank side we selected the 10,000 AUD line and the REVERSAL lines of 2000 AUD (Net 8000 AUD)

      On the system transaction side we selected the payments amounting to 8000 AUD.(2000 AUD rejected payments were voided before hand)

      Reconciliation was performed succesfuly.

      • Felix Beaudoin

        Thank you for letting us know the solution Amol. Great to see that the bank truly had both lines and not just the 10k.