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Overview

The Bank Reconciliation process focuses on reconciling the Bank transactions which are imported from the Bank Statement with the relevant General Leger transaction in the Journal Voucher Item entity (Cash Book).

In the Financial System, when any transaction is posted against a Bank Account, the system creates a Journal Voucher which debits or credits the Coding Block related to the Treasury Bank Account (through the GL offset code). For example, when users create a Receipt Voucher when the money is deposited in a specific Treasury Bank Account against a revenue item, the system creates a Journal Voucher to debit the Bank Account Coding Block of the Treasury Bank Account (each Treasury Bank Account is linked to GL Offset Code which is by itself linked to Coding Block) to record the deposited amount, and the offset Credit side of the Journal Voucher is the revenue item.

At the same time, when the money is deposited in the bank, the bank records this transaction as Credit to the Bank Account i.e. the deposited amount is recorded as Debit in the Government’s books and Credit in the Bank’s books.

The objectives of Bank Reconciliation are to make sure that the JV entries related to the Bank Accounts in the Government’s books (in the above example the Debit amount of the JV) has been realized and recorded in the Bank’s books and vice versa.

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Treasury Management ► Bank Reconciliation ► Bank Reconciliation

Bank Reconciliation screen fields and Tab