To do a Bank Reconciliation you must receive the period bank statement, from your banker, which lists the activity in the bank account during the reconciling period.
When you receive the bank statement for a particular account, verify that the amounts on the bank statement are consistent or compatible with the amounts in the Loan Performer bank account and vice versa.
Loan Performer allows you to do this through a series of steps.
How to do a Bank Reconciliation
To get to this menu you go to Accounts->Bank Reconciliation->Reconcile and a screen like the one below shows up:
Statement Date: Here you enter the Bank Statement date, e.g., "30/08/2020".
Bank Account: Select the bank account that you want to reconcile from the drop down list, e.g., "Citibank".
Opening Balance: This is a read only field and will show the opening balance for the period as shown on the bank statement. If there was a previous bank reconciliation done, then this field will automatically be updated with the previous period reconciled bank statement balance; this happens to be the opening balance for the current period. As seen below:
Ending Balance: In this field enter the ending balance as shown on the bank statement, e.g., "271,040,000". This will in turn be the opening balance in the next reconciliation.
Click on the Next button to continue and a screen like the one below shows up:
Inwards Transaction: This section shows a list of all the inward transactions or deposits into the Loan Performer bank account. Each transaction is preceded with a check box. If the transaction also appears on the bank statement, tick the checkbox. If it doesn't appear on the bank statement, leave the checkbox unticked.
Outwards Transaction: This section shows a list of all the outward transactions or withdraws from the Loan Performer bank account. Each of the displayed transactions is preceded with a check box. If the transaction appears on the bank statement, tick the checkbox. If it doesn't appear on the bank statement, leave the checkbox unticked.
Uncleared Debits: This field will be refreshed with the total amount of transactions that have not been ticked in the Inwards Transaction section. This represents the total deposits that do appear in the Loan Performer bank account but not shown on the bank statement, e.g., "Cash in transit".
Uncleared Credits: This field will be refreshed with the total amount of transactions that have not been ticked in the Outwards Transactions section. This represents the total withdraws that do appear in the Loan Performer bank account but not shown on the bank statement, e.g. "Unpresented cheques".
Opening Balances: This is a read only field and will show the opening balance for the period as shown on the bank statement.
Cheque Deposits: This field will automatically display the total amount of deposited cheques that appears on both the bank statement and on the Loan Performer bank account.
Less cheque payments: This field will automatically show the total payments made by cheque from the Loan Performer bank account, e.g., "Loan Disbursements by cheque".
Less other payments: This field shows the total amount of other payments that appear on both the Loan Performer bank account and the bank statement. These may include
Service charges
With holding tax e.t.c
Plus Other Deposits: This field shows the total amount of other deposits that appear on both the Loan Performer bank account and bank statement. These may include
Interest earned
EFT e.t.c
Ending Balance: This field will automatically be filled with the bank statement ending balance, e.g., "1,000,000".
Difference: This field shows by how much you still need to adjust your accounts to be able to fully reconcile the statements.
Note that you will not be able to save the reconciliation until this figure has been reconciled down to zero.
Adjustments Value: The figure that will automatically show up in this field represents the difference between the Loan Performer bank account balance and the bank statement ending balance.
LPF GL Balance: General ledger balance will automatically appear in this field e.g 271,040,000
View report: Click this button to view the reconciliation report.
Approval: Incase there are some un approved manually entered transactions that fall within the reconciliation period, click on this button the Approve manual transactions menu will appear and you can select the transactions that need to be approved as seen below:
Add transactions: Incase there are some missing transaction that fall within the reconciliation period, click on the Add transactions button Add transactions menu will appear and you can select the transactions that need to be added as seen below:
Click the Save button to save the reconciliation and the Bank Reconciliation statement will be displayed as follows:
Note that if you want the accounts to be updated, you have to print the report.
