ERP/3.0/User Manual/Financial Account to Reconciliation

ERP/3.0/User Manual/Financial Account to Reconciliation ERP/3.0/User Manual/Period End Close to Financial Report Asset Acquisition to Dispose

Contents 1 Introduction 2 Abstract Business Process 3 Roles Involved 4 Configuration 5 Step by Step 5.1 Register Financial Account Transactions 5.2 Process Bank Statement 5.3 Reconcile 5.3.1 Bank Transactions 5.3.2 Cash Transactions

Introduction

1. The reconciliation of financial account transactions for a bank statement:

• Receive a bank statement (paper or electronic).
• Reconcile in the application transactions marked as deposited/withdrawn not cleared in the system with the actual transactions on the bank statement. This process can be done manually by using the "Reconcile" option (one by one through the manual form) or by using the "Match Using Imported Bank Statement" option (Globally using a matching algorithm).

2. The manual reconciliation of financial account transactions for cash:

• Close petty cash transactions
• Using the application, reconcile transactions marked as deposited/withdrawn not cleared in the system with the actual transactions, entering a cash difference where needed. This process can be done manually using the "Reconcile" option (one by one through the manual form).

Keep in mind that some processes, like creating the invoices that are the origin of the payments, are not described here. Please refer to the user manuals 'Supplier Invoice to Payment' and 'Customer Invoice to Cash' for the creation of the payments and the process up to the point of the status 'deposited/withdrawn not cleared'.

Abstract Business Process

The abstract Financial Account to Reconciliation is defined by the following business process diagram:

It consists of the following sub processes:

• Read/Import Bank Statement or Cash
• Compare to ERP Records
• Reconcile(using automatic feature with the algorithm or manually through the form).

Roles Involved

The roles required to complete this process are:

• Finance - this role fully manages banks, accounts and the bank statements

Configuration

Some configuration needs to be done before performing this process. Please refer to the Configuration Manual.

Step by Step

Register Financial Account Transactions

The Finance role should be used. As described in the Collection and Supplier Payment Management user manuals, the transactions related to a financial account can be found in the Financial Management || Receivables and Payables || Transactions || Financial Account window tab Transactions:

Transactions can be added by pressing the Add Transaction button (at the bottom). This will bring up a new window used to present payments (receivables and/or payables) that can be selected as new transactions in the given Financial Account:

If payments are not yet present in the application, they can be created by pressing the Add Payment button.

Also transactions using GL Items can be added with the Add Transaction button:

Bank fees can be added as transactions using the Add Transaction button:

Process Bank Statement

The Finance role should be used.

A bank statement is normally received in a paper or electronic format. Regardless, it is a list of outgoing and incoming payment transactions that your bank has recorded. Bank Statements can be imported in an electronic format using one of the existing Bank File Formats. All those Formats can be deployed through modules into the system, as per the configuration manual. The import of Bank Files can be done through the Import Bank Statement button inside the Transactions tab.

Select the Bank File to be imported and select the proper File Format from the ones available (Previously installed). Press OK button.

Obviously this step will be skipped for cash transactions.

Reconcile

The Finance role should be used.

Bank Transactions

The objective of this step is to match the lines of the statement you received from the bank, with the list of transactions that the Openbravo ERP application has recorded as 'not cleared'.

Use the Match Using Imported Bank Statement button inside the Transactions tab. The matching algorithm will try to map existing transactions in the financial acount, with the transactions on the Bank Statement. Matches can be:

1. Strong: The system has found a full match.
2. Weak: Almost all the info coming from the Bank Statement matches the existing transaction. The system proposes that transaction as a match but the user has to clear it manually.

This way, payments that have been selected will be included in this reconciliation. You can repeat the process of clicking the Save button as many times as necessary to include all necessary payments in the Reconciliation.Once all the pending lines of the bank statement have been matched, the reconciliation can be processed by clicking the Reconcile button.

You can process a reconciliation against a bank statement which was previously imported and has unmatched bank statement lines.

Once the Reconciliation has been processed the payment status moves to Payment Cleared.

Cash Transactions

For Cash transactions the reconciliation is done manually:

Use the Reconcile button inside the Transactions tab.

Enter the balance of the cash for that particular cash account and flag the transactions to meet that amount:

and click the Reconcile button. The completion message will indicate the reconciliation number of the created reconciliation.

Once the Reconciliation has been processed the payment status moves to Payment Cleared.

On the Payment Report you can display payments and their statuses:

and filter the status Payment Cleared:

Category: WorkInProgress