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Using TurboCASH

 







BANK ACCOUNTS
FIXING DIFFERENCES BETWEEN THE CASHBOOK AND THE BANK STATEMENT
  
After doing the bank reconciliation in the Input Reconcile Bank menu option, the cash book (bank account) balance in TurboCASH and the bank statement must be in balance after all the outstanding deposits (receipts) and the outstanding payments (cheques) is reported on the Cash Book reconciliation report. Any differences should be displayed on the following screens or reports:
  1. Input - Reconcile Bank menu option - The bottom right-hand corner The closing balance of the bank statement. The total amount of the transactions in the Receipts batch not on the Bank Statement. The total amount of the transactions in the Payments batch not on the Bank Statement. This amount is updated if an item is marked as reconciled. This total is the net difference of the total amounts of reconciled items in the Receipts and the Payments batches. If all the items are reconciled, this must reflect a nil balance. If there is still a difference, you need to find and fix the errors.

  2. Cash Book Reconciliation Report -

System date and time. Page number. Name of the business. Name of the report. Name or Description of the Current Bank Account. Closing balance as entered on the Reconcile Bank Account screen Outstanding Payments. If any Deposits in the Receipts Journal does not appear on the Bank Statement, the Outstanding Deposits will also be listed. The bank balance as is reconciled. The closing bank balance according to TurboCASH. If all the items are reconciled, this must reflect a nil balance. If there is still a difference, you need to find and fix the errors.

TurboCASH will subtract any unreconciled payments and add any unreconciled receipts from the bank balance according to the bank statement, thus giving you a reconciled balance.

 

If there is a difference between the Reconciled Bank Balance and the balance according to TurboCASH, you have an error in either your Payments or Receipts journals. You would have to search for the error and correct it. The following is only a few examples that can possibly cause a difference:
  • Your closing bank balance is incorrectly entered on the Reconcile Bank Account screen (Input - Reconcile menu option) or on the Reconcile Bank Account report options screen (Reports - Reconciliation menu option). If you have downloaded a bank statement or imported a bank statement, you need to save the bank statement transactions as a file using the correct dates to include transactions when you save the file.

  • Incorrect date entered in the Include Items Until field Reconcile Bank Account report options screen (Reports - Reconciliation menu option).

  • Not all transactions appearing on the bank statement have been marked or selected as reconciled items on the Reconcile Bank Account screen. If amounts have been marked or selected as reconciled, there may be a difference in the amounts in your cash book (receipts and payments journals) and the bank statement.

  • Transactions appearing on the bank statement may have not been entered in the receipts or payments journal or batch. In this case, you need to find the transaction and add or insert the transaction form the receipts or payments journal or batch.

  • Transactions appearing on the bank statement may have been entered twice in the receipts or payments journal or batch. In this case, you need to find the transaction and delete the transaction form the receipts or payments journal or batch.

  • Transactions appearing on the bank statement may have been entered incorrectly in the receipts or payments journal or batch. In this case, you need to find the transaction and delete the transaction form the receipts or payments journal or batch.

  • Errors in posting they should have been detected when your bank reconciliation was done. An example is where you may have posted an amount incorrectly e.g. as R() 64.00 and entered it as R() 46.00.

If the difference is a positive amount, it is likely that a transaction on the bank statement is not entered or omitted in the payments journal.

If the difference is a negative amount, (the amount prefixed by a minus sign (-)), it is likely that a transaction on the bank statement is not entered or have been omitted in the receipts journal.

If everything else fails you may sometimes have to look at your cash-book and link up the source documents to check if you have entered all your transactions correctly.

You may need to generate a Cash-Book report from the Reports - General Ledger - Ledger menu option to trace some errors if your payments and receipts journals or batches have been posted to the ledger.

Name of the business. Name of the report. Selected accounting period or periods. System date and time. Page number. Transaction date. Transaction date. The account number and description or name. The Opening balance for the selected period. The Closing balance for the selected period. The balance as accumulated (increased or decreased) by each transaction. The total of all the closing balances of selected accounts in this report. Accounting periods. The batch type or the name of the journal in which the transactions is posted or updated to the ledger. Reference number for the transaction. 8 Asterisks (********) indicates that it is a balancing entry. The description of the transactions. Debit amounts of transactions. Credit amounts of transactions. Debit amounts of transactions. Credit amounts of transactions. Accounting periods. The batch type or the name of the journal in which the transactions is posted or updated to the ledger.

If you had not changed the description "BALANCING ENTRIES - RECEIPTS JNL" "BALANCING ENTRIES PAYMENTS JNL" AND JNL to a meaningful description such as Deposit Slips D5000 to D5001 and Payments Cheques 105 to 111, you will find serious difficulties in tracing the errors if you have lots of data.