How to Reconcile Your Bank Accounts in Tagrit ERP Accounting Module

Introduction

Bank reconciliation is essential for verifying the alignment of your financial records with your actual bank transactions, ensuring all deposits, withdrawals, and fees are accurately recorded. Tagrit ERP’s Accounting Module simplifies this process with a structured bank reconciliation feature. This guide covers the steps for reconciling bank accounts, matching transactions, handling mismatches, making adjustments, and generating reconciliation reports.

1. Accessing the Bank Reconciliation Menu

1. Navigate to Banking Menu:

   • Go to the Banking menu within the Tagrit ERP Accounting Module.
   • Select Reconcile Bank Account from the options.

2. Choose the Bank Account:

   • Select the bank account you want to reconcile. This account should have its transactions recorded in Tagrit ERP.

2. Setting Up Reconciliation Details

1. Enter Period Withdrawals and Deposits:
   • Input the total withdrawals and total deposits for the period you're reconciling. This will help calculate your ending balance.
2. Define Ending Date and Start Reconciling:
   • Enter the ending date for the reconciliation period, then click Start Reconciling.

3. Matching Transactions

Once reconciliation starts, Tagrit ERP will fetch transactions from both the Banking Register and Posted Bank Transactions to match them with unreconciled transactions.

1. Select and Match Transactions:

   • Click Match Transactions to find matches between system records and bank transactions.
   • Transactions with a green check mark are successfully matched, while those with a red check mark indicate a mismatch that may require adjustments.

2. Review Mismatches:

   • For transactions marked in red, investigate potential errors. If you find an incorrect transaction, you can save it for later adjustment.

3. Edit Mismatched Transactions:

   • Exit the reconciliation view, go to the transaction in question, edit it as needed, then return to the Reconcile Bank Account screen and continue reconciling.

4. Adjusting Transactions

When mismatches occur, adjustments are necessary to ensure accurate records.

1. Using Adjust and Finish:

   • For transactions that cannot be directly matched, select Adjust and Finish to enter an adjustment entry.

2. Adjusting Unmatched Transactions:

   • Create a New Transaction to align with the bank record, or Adjust an Existing Transaction in the system to fit the bank’s record.

3. Selecting Accounts for Adjustment:

   • Choose another account for double-entry adjustment if required, then click Save.

5. Finalizing Reconciliation

1. Complete Matching of All Transactions:

   • Continue matching until all transactions are reconciled. If certain transactions don’t match, select Leave it Uncleared to ignore them temporarily.

2. Finish Reconciliation:

   • Once all transactions are matched, click Finish to complete the reconciliation.

6. Undoing a Reconciliation

If you find an error after completing a reconciliation, you can undo the last reconciliation:

1. Undo Reconciliation:
   • Go to the Bank Reconciliation screen and click Undo Last Reconciliation to revert recent matches and reinitiate the process.

7. Generating Bank Reconciliation Reports

Tagrit ERP offers two types of reconciliation reports to review and analyze your bank reconciliations.

1. Bank Reconciliation Summary:

   • Go to the Reports menu, select Bank Reconciliation Summary, choose your bank account and statement ending date, then click Filter.

2. Bank Reconciliation Detail:

   • For a detailed view, select Bank Reconciliation Detail, pick your account and ending date, apply the filter, and review itemized transaction details for that period.

Conclusion

Using the bank reconciliation feature in Tagrit ERP’s Accounting Module ensures that your financial data is precise and reflective of real-time banking activity. By following this structured approach, you can streamline reconciliations, promptly resolve discrepancies, and maintain accurate financial records.