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How to Deal with Discrepancies in Bank Reconciliation?[MIGRATED]

posted Jan 19, 2009, 5:54 PM by Unknown user   [ updated Jun 28, 2011, 1:52 AM by Unknown user ]
Migrated to  http://wavelet.asia/customer-portal/2011/04/01/how-to-deal-with-discrepancies-in-bank-reconciliation/

Discrepancies in the Bank Reconciliation is the residual amount of the expected and actual amount of bank reconciliation's closing balance. The purpose of eliminating discrepancies is to reconcile the cashbook and bank statement and to find out what errors, omission or misstatement which has occurred.

There are ways to deal with discrepancies:

1. Check what transactions appeared in the bank statement but is not filed in EMP.
  • When performing bank reconciliation, take note of the transactions in the bank statement which is not shown in the bank reconciliation, irrespective of payment or receipt.
  • Investigate these transactions by checking with the relevant persons or paper documents in the company. Check whether the transaction has occurred and is authorized.
  • If the missing transaction is paid by cheque, refer to the information on the 'cheque butt' and input the missing transaction in the EMP by creating a new payment voucher. If the amount in EMP is wrong, then edit the payment voucher.
2. Check what transaction existed in EMP but is not displayed in the bank statement.
  • This is an opposite way of the no.1 above.
  • Investigate these transactions by checking with the relevant persons or paper documents in the company. Check whether the transaction has occurred and is authorized.
  • Cheques issued or received and recorded in EMP may be missing in the bank statement. This could be due to unpresented and uncredited cheques. You can wait for the next month's bank statement to check if these transactions are passed.
  • However, if there are still uncertainties, please call your bank for clarification.
3. File reversed payment vouchers or receipts.
  • Payment vouchers or receipts which have already been reversed will appear in the bank reconciliation but will not be shown in the bank statement.
  • Please check the Rct or PV number and match with any reversed documents appearing in the 'Add Details' section. Remember to tick both the original and reversed transactions to contra off that amount showing as though the transaction never occurred. Then click 'File It'.
  • By ticking only one of the transaction will cause discrepancies to exist.
4. Create payment vouchers for bank charges.
  • Scan through the bank statement and search for bank charges or any other finance charges.
  • Create payment vouchers for each bank charges in the EMP so that EMP can capture the outflow to tally the closing balance in cashbook with bank statement.
5. Transfer of information for users who just started adopting EMP.
  • Users who just adopted EMP must transfer cashbook information from their previous System to EMP. This includes last month's uncredited and unpresented cheques.
  • For more details, please refer to Opening Cash book

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