General Ledger Does Not Balance to the Bank Reconciliation Module

Description

How to reconcile the Bank Reconciliation module to the General Ledger module.
Bank Reconciliation is a separate module from General Ledger and the two modules should be reconciled.
General Ledger does not balance to the Bank Reconciliation module

Disclaimer 

Sage Customer Support does not provide assistance for issues related to third party products or enhancements, hardware, report customization, state or federal tax-related questions, or specific accounting questions.

Cause

Bank Reconciliation is a separate module from General Ledger and the two modules should be reconciled.

Resolution

After using Bank Reconciliation module to reconcile to the Bank Statement, the Calculated Book Balance on the Bank Reconciliation Report (Register) should be reconciled to the General Ledger:  If the General Ledger does not agree to the Bank Reconciliation Module, perform the following steps:

1. Verify the Beginning Balances in both modules are in agreement:
   • Run Bank Recap Report (Bank Reconciliation, Reports).  Select Bank Code operand Equal to and select Bank Code from look up.  This report displays in chronological order.  Find the prior month ending balance on this report.
   • Open General Ledger, Main, Account Maintenance, and select the general ledger account for the bank code.  Go to the History Tab and find the balance for the end of the prior month.
   • Compare these two balances (Bank Recap Report and General Ledger, Account Maintenance.)
   • If the beginning balances do not match, the issue occurred in the prior month.  Note: The balances may have agreed during the reconciliation process last month, but an entry dated in the prior month could have been posted in one module but not the other after the reconciliation was done.
2. Verify the data in General Ledger
   • In General Ledger, Main, Account Maintenance, select the general ledger number for the bank code.  Verify the ending balance on the History Tab agrees to the ending balance on the Transaction Tab.  If the balances do not match, see Related Article below How to recalculate G/L account balances and dates.
3. Verify the data in Bank Reconciliation (even if you are in balance with your bank statement)
   • Run Bank Recap Report and select Bank Code “Equal to” and select bank code.  Verify the following:
   • The beginning balance on the Bank Recap Report should be equal to the ending Bank Statement balance from the last time you reconciled and purged cleared transactions.  If they are not equal, Related Article below How the Beginning Balance calculates on the Bank Recap Report 
   • The ending balance on the Bank Recap Report should be equal to the Current Balance in Bank Code Maintenance.  If they are not equal, Related Article below Ending Balance on the Bank Reconciliation Recap Report does not match the Current Balance
4. If your bank reconciliation was in balance before performing steps above and now shows out of balance:
   • Note:  Use caution when working with repair utilities. Always make a backup first.  If necessary, seek the assistance of a qualified Sage Software business partner or Customer Support Analyst
   • For Versions 4.40.0.2 and higher: Expand Bank Reconciliation, Utilities, Recalculate Outstanding Balances
   • For Versions 4.20 – 4.40.0.1: Rebuild sort files for Bank Reconciliation. For more information, see Related Article below How to rebuild sort files.
   • If the out of balance conditions still exits, see Related Article below How to resolve an Out of Balance in Bank Reconciliation 
5. Verify all entries appear in both modules and that the Posting Dates in General Ledger are the same as the Document Date in Bank Reconciliation.  Any discrepancies are reconciling items. Use the following reports:
   • Bank Recap Report
   • General Ledger Detail Report
   • Look at transactions before, during, and after the month.