BINDAWOOD SUPERSTORES CO

BANK
RECONCILIATION
THROUGH
MS EXCEL

Prepared By : Imran Navid

Prepared By : Imran Navid Page 1

 BEFORE RECONCILIATION
STEP 1 : GENERATING O/S AND CLEARING OF CHEQUES

1. On the first day of each month first make sure that the clearing has been done for each bank for
particular month.
2. Generate report for Outstanding cheques in JDA from option 23 by entering the date from 1-1-
01 till the end date of that month either 30 th or 31st, e.g. 1-1-01 to 30-9-10.
3. Generate report for Clearing in JDA from option 24 by entering the dates of only the
reconciliation month e.g. 01-09-10 to 30-09-10.
4. You can find the generated reports in spool files.
5. Send these reports in your email through option 15 in JDA (spool to text).
6. Within 5 minutes, these report will be available in your inbox, therefore no need to take the
printout of these reports,as this is always available in your inbox.

STEP 2 : GENERATING GENERAL LEDGER

1. Before running the GL make sure that all the entries has been prepared and been posted by the
Chief Accountant( Mr.Rizwan). These entries include.
a. Cash Deposits against sales for all banks ( Mr.Kamran)
b. P.O.S transfers credited in all bank. ( Mr.Kamran)
c. Cash/Cheques Deposits from Makkah, Madina, Jeddah. (Mr.Arif)
d. Transfers in and out to other parties.
e. Transfers in and out to sister companies.
f. AP for LC payments from all banks.
2. Ask Mr.Rizwan for :
a. Posting JEs .
b. Posting APs .
c. Posting of Cheques prepared from Jeddah and Makkah.
d. Running Hanging Batches Report
3. After performing these steps almost all the transaction will appear in the General Ledger.
4. Now you can use the GL for reconciliation with bank.
5. Generate the GL Enquiry and send to your email.

STEP 3 : DOWNLOAD BANK STATEMENT FROM BANK WEBSITES

1. Download bank statements and save in the format of Excel 2003.

Prepared By : Imran Navid Page 2

 RECONCILIATION THROUGH EXCEL
STEP 1 : GATHERING DATA IN EXCEL FORMAT

1. You have following files in your inbox in .txt format :

a. Clearing
b. Outstanding
c. General Ledger
2. Make one folder with the name of Reconciliation for your convenience.
3. Save all these text files in this folder
4. Open these files from excel, excel will ask from you for making columns, after making sure that all the columns are
properly marked save these files in Excel 2003 format.
5. Also save the excel bank statement in this folder.

STEP 2 : VERIFYING CLEARING OF CHEQUES

1. Open the clearing and bank statement file in the excel

2. Always remember to make the copy of the sheet in excel and rename one as “Master” and another as “Working” by
right clicking on the sheet and selecting move or copy.
3. Remove the reversals from bank statement, and after removing all reversal verify the running balance that it is
accurate.
4. Now make the total of checks withdrawn from bank, and match with the total appearing in the clearing report which
we have in excel.
5. If total is matched then your life will be easy and you can say that clearing is 100% accurate, but if the clearing total is
not matched then you will have to do some more steps.
6. Remove the unnecessory rows from clearing excel file.
7. Sort all the data on the basis of clearing date column.
8. Now check the date wise total of clearing and bank statement by doing this you can identify that which date have the
clearing problem.
9. If the total of any date is not matching, then you can easily identfy that which particular check have problem.
10. Identify all the problematic checks and note all of them.
11. Now remove all the rows of checks in the bank statement except those which have problem.
12. Your 50% work has been finished and your bank statement size will also be reduced.

STEP 3 : VERIFYING OUTSTANDING OF CHECKS

1. At a glance you can check that any cheque with different serial is appearing in the O/S detail.
Mostly the cheques that are made in history against transfers are not cleared, therefore mark
those which are cleared from bank.
2. May be you have not cleared any cheque which are identified in the previous reconciliation.
3. Therefore refer to the previous reconciliation if any cheque that have already been identified
before has been updated in the JDA.

STEP 4 : MATCHING DR SIDE OF GL WITH BANK STATEMENT

Prepared By : Imran Navid Page 3

 1. Open the GL in excel.
2. Remove unnecessory rows.
3. Verify the running balance.
4. Remember that you should have to work on the copy and not on the master sheet.
5. Filter only checks by selecting APCK from filter.
6. At a glance just look that all the checks are in the credit column.
7. Select all the rows and delete all of them.
8. Now filter the checks that are void by selecting VOID.
9. Again see that all void checks are in the debit column.
10. Select all except those which are canceled in the following month and delete them. (Remember
that canceled will hit the month in which it is prepared.
11. Now filter only the debit transaction by selecting BLANK from credit column.
12. Make one new sheet with the name of DR.
13. In this new sheet make 6 columns as follows

BOOKS DATE DESCRIPTION AMOUNT STATUS MORE THAN

ONE
14. Copy these filtered debit entries in this sheet.
15. Put formula in status column as

=countif(d$2:d$677,d2)

Note : The above data range is an example, enter the data range which is available with you,
drag this formula in all rows. This will identify that how many times each amount is appearing in
the column.

16. Therefore in the column of “MORE THAN ONE” i.e. column E write “more than one” in each row
in which status is greater than 1.
17. Now delete the formula because you have identified the unique as well as identical amounts.
18. In the column of “BOOKS” write “Ledger “ in each row of the Ledger transaction.
19. Same as you have copied the data from GL in the DR sheet, copy the data of CR column from
bank statement and paste it at the bottom of the ledger data.
20. In the column of “BOOKS” write “Bank” in each row of the bank transaction.
21. Apply the same formula as above to identify unique as well as identical amounts in the bank
transactions.
22. Now we have to match items of bank and ledger transaction and all the transactions are
available in the same column. We will use same formula by changing it as follows in column E
i.e. “STATUS” column.

=countif(d:d,d2)

Drag this formula in all row including ledger and bank transaction.

Note : This formula will match the amount in cell D2 with each row in the column D

Prepared By : Imran Navid Page 4

 23. Once you drag the formula in all rows it will mention how many times each amount is appearing
in the row.
24. We have one more column in which we identified amount which are appearing more than one.
Also use the filter of this column and select only blanks.
25. With the help of filter, filter only the amounts that have the status of 2.
26. Make the total of the ledger transactions and the bank transactions, this will match definitely if
you perform all the steps accurately.
27. If your total is matched delete all the rows. Easy peasy life is easy you have done 70% of your
reconciliation.

STEP 5 : MATCHING CR SIDE OF GL WITH BANK STATEMENT

1. Make one sheet and rename it with CR.

2. Perform same steps in matching the transaction as we have done in our DR sheet.
3. After matching CR side of ledger with bank statement you have finished 80% work of your
reconciliation.

STEP 6 : PLOTTING UNRECORDED ENTRIES IN MONTHLY RECONCILIATION SHEET

1. In step 4 and 5 you have identified the transactions which are not recorded in your GL or made
wrong in GL.
2. Copy these transaction and paste them in your monthly reconciliation.
3. After plotting all transaction in your monthly reconciliation sheet you will have to use your
common sense either to use the minus and the plus for each amount.
4. Add the amount of Outstanding Checks in your reconciliation taken from the report available in
inbox.
5. Now you have done the reconciliation.

Prepared By : Imran Navid Page 5