Balancing Bank Register to the Journal

1. Close journal for month that is being balanced
2. Verify bank register balance and journal ending balance match for previous month
   • Print Register balance for previous month
   • Print Journal Listing report for previous month
   • Compare Register balance to ending balance on Journal Listing Report (the two should match)
3. Compare ending balances between Journal and Bank Registers for month that is being balanced:

• Register Ending Balance:$___________________________
  • Accounting>File>Banking>Add/Edit Checks
  • Select Bank account
  • Click Binoculars, select Transaction Type>All
  • Click Printer icon
  • Change dates to reflect month being balanced
• Journal Ending Balance:$____________________________
  
  • Accounting>File>General Ledger>General Ledger Functions>Print Journal 
  • Select Bank account code
  • Tag Stores
  • Check 'Combine' (if register is used for all stores)
  • Check 'Print Beginning Balances'
  • Select dates for the month being balanced

Debits:

• DEPOSITS: Debits to the bank account come from deposits that are posted. Deposits consist of deposits for receipts and miscellaneous deposits (Deposits for Income Other than Sales).
• TRANSFERS: Account that money is being transferred FROM will be debited. 

Credits: 

• CHECKS: Credits to the bank account come from checks that were entered as hand-written checks, Accounts Payable checks and payroll checks.
• BANK CHARGES: Bank charges will credit the bank account. A negative credit comes from negative bank charges posted.
• TRANSFERS: Account that money is being transferred TO will be credited. 

When balances do not match:

• Go back to month where it balanced last, then investigate what caused it to go out of balance, see Common reasons the checking account is out of balance section below.

Common reasons the checking account is out of balance:

• Printing reports when journal is not closed.
  • Close journal and re-print reports
• When posting a check, deposit or bank charge the user posted/coded these entries back to the same checking account code. Doing this debits and credits the same account code so the net result is zero.
• Journal entry was coded to bank account. Journal entries do not affect register balance. 
• Checks that were written did not get posted to the General Ledger. Reasons for this:
  • The General Ledger was not activated (turned on) at the time the checks were written, so journal entries will have to be made to the journal to reflect these checks.
  • While printing the checks your hardware received a power surge or an error message that prevented RFMS from posting to the journal. Journal entries will have to be made to the journal to reflect these checks.
  • When discounting off a customer's balance in order entry, the user posted the discount to the bank account code.