This article demonstrates how you can record your first reconciliation against your bank account with an outstanding balance brought forward from another accounting system.

Without Unreconciled Transactions

Prerequisites
  1. The defined cut-off date is 31/12/2019.
  2. You have an outstanding of RM7,000.00 in your bank account “HLB Current”.
Entering Opening Balances
  1. Head over to Accounting -> Chart of Accounts.
  2. Locate beside + New button and click on Opening Balance.
  3. Make sure the closing date selected is 31/12/2019.
  4. Key in your accounts’ opening balances based on the closing balances from another system as of 31/12/2019.
  5. Click Save.
Reconcile the Bank Account Following the Opening Balance
  1. Click on Bank -> Accounts.
  2. Locate and click on the Reconcile button on the HLB Current row.
  3. Click on Manual Reconciliation.
  4. Enter 31/12/2019 in Statement Date.
  5. Enter 7000 in Statement Balance.
  6. Tick on the only OPENING line.
  7. The indicator should show Balanced.
  8. Click Save.
Outcome
  1. The Statement Balance column for the bank account should appear as RM7,000.00 at 31/12/2019.
  2. Your bank account is all reconciled at the beginning of the new year, where you have started using Bukku to handle your account.
  3. You can reconcile like normal with Manual or SmartRecon in the subsequent months.

With Unreconciled Transactions

Prerequisites
  1. The defined cut-off date is 31/12/2019.
  2. You have an outstanding / opening balance of RM75,000.00 in your bank account “HLB Current”, including some transactions not reconciled yet.
  3. The following transactions are not reconciled yet (such as Unpresented Cheques).
DateDescriptionAmount
23/12/2019PCB – DEC 2019-RM250.00
25/12/2019KWSP – DEC 2019-RM6,500.00
28/12/2019SOCSO – 2019-RM600.00
 TOTAL-RM7,350.00
  1. The bank balance as per bank statement is RM82,350.00. (RM75,000.00 + RM7,350.00)
Create Temporary Account for Unreconciled Transactions
  1. Head over to Accounting -> Chart of Accounts.
  2. Click on + New button.
  3. Select Type: Current Assets.
  4. Type Name: Unreconciled Transactions – FY2019
  5. Click Save.
Entering Opening Balances
  1. Head over to Accounting -> Chart of Accounts.
  2. Locate beside + New button and click on Opening Balance.
  3. Make sure the closing date selected is 31/12/2019.
  4. Key in your accounts’ opening balances based on the closing balances from another system as of 31/12/2019.
  5. Update the bank balance following the balance on bank statement (RM82,350.00 / DEBIT 83850) and then enter the unreconciled amount in account Unreconciled Transactions – FY2019 (-RM7,350.00 / CREDIT 7350)
  6. Click Save.
Journal Entry for the Unreconciled
  1. You will need to create a journal entry to adjust the balance of your bank account for the unreconciled transactions.
  2. Heads to Accounting -> Journal Entries.
  3. Click on + New.
  4. Date: 31/12/2019.
  5. Add the following items based on the unreconciled transactions.
  6. Click Save.
Reconcile the Bank Account Following the Opening Balance
  1. Click on Bank -> Accounts.
  2. Locate and click on the Reconcile button on the HLB Current row.
  3. Click on Manual Reconciliation.
  4. Enter 31/12/2019 in Statement Date.
  5. Enter the statement balance (RM82,350.00) in Statement Balance.
  6. Tick on the only OPENING line and ignore the other 3 lines (Because they are not reconciled as at 31/12/2019)
  7. The indicator should show Balanced.
  8. Click Save.
Outcome
  1. The Statement Balance column for the bank account should appear as RM82,350.00 at 31/12/2019.
  2. Your bank account is reconciled until 31/12/2019, with a few transactions left unreconciled.
  3. You can reconcile like normal with Manual or SmartRecon in the subsequent months.

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