How to Clear Bank Reconciliation in Sage 100

Initial Preparation

Before starting the bank reconciliation process, several preliminary steps must be completed to ensure accuracy. First, verify that your General Ledger Daily Transaction Register is empty, as attempting to reconcile with unposted transactions can create complications[3].

Check Current Balances The current balance in Bank Code Maintenance must match today's balance in your General Ledger. This verification is essential for accurate reconciliation calculations based on your period's closing date[3].

Accessing the Bank Reconciliation Module

To begin the reconciliation process, navigate through the following steps:

1. Open the Bank Reconciliation module in Sage 100
2. Select Main Menu
3. Choose Reconcile Bank
4. Select the appropriate bank code for reconciliation[7]

Transaction Verification Process

Manual Transaction Entry For transactions not automatically posted through integrated modules, you can manually enter:

• Checks
• Deposits
• Adjustments[2]

Bank Transfer Recording Instead of using journal entries, it's recommended to record bank transfers using a transaction journal. This method ensures proper reflection in both:

• The General Ledger bank accounts
• The Bank Reconciliation module[3]

Clearing Transactions

When clearing transactions, follow these systematic steps:

1. Compare your bank statement to the transactions listed in Sage 100
2. Select the Clear checkbox for each matching transaction
3. Enter the clearing date (typically the last day of the month or actual clearing date)
4. Verify that deposits and adjustments match your statement[7]

Transaction Organization Tips To better manage and verify cleared transactions:

• Use column filtering to sort by check number
• Export data to Excel for easier comparison
• Group cleared and uncleared items separately
• Compare totals with bank statement summaries[3]

Reconciliation Tools

Sage 100 provides several useful tools to streamline the reconciliation process:

Quick Actions Icons

• Bulk check clearing for multiple checks
• Reset row function to undo recent actions
• Check number search for large transaction lists
• Column resorting capabilities[3]

Balance Verification

Out of Balance Resolution If you encounter an out-of-balance situation:

1. Verify the bank statement balance entry
2. Confirm reconciled deposits and adjustments
3. Check cleared checks for accuracy
4. Compare calculated book balance against GL cash account
5. Adjust bank code maintenance if necessary[1]

Running the Reconciliation Report

After achieving a zero out-of-balance amount, generate the reconciliation report:

1. Enter your Bank Code
2. Specify the period's ending date
3. Preview the report
4. Verify the Calculated Book Balance matches your General Ledger[3]

Clearing Completed Reconciliation

Once the reconciliation is complete and verified:

1. Exit the reconciliation report
2. Respond to the prompt to remove cleared documents
3. Confirm the removal to prepare for next month's reconciliation[3]

Advanced Features and Benefits

The Bank Reconciliation module in Sage 100 offers several powerful features:

Security and Control

• Positive Pay functionality for fraud prevention
• Controlled access to balance entries
• Detailed audit trails[2]

Analysis Tools

• Estimated cashflow analysis
• Bank transaction recap reports
• Comprehensive reconciliation registers[2]

Best Practices for Ongoing Management

To maintain efficient bank reconciliation processes:

Documentation Management

• Retain or purge detail based on company policy
• Maintain up to 2,048 characters for adjustment entry comments
• Keep detailed records of reconciliation activities[2]

Regular Monitoring

• Review bank activity detail regularly
• Monitor cashflow projections
• Track outstanding items[2]

Troubleshooting Common Issues

When encountering reconciliation problems:

Balance Discrepancies

1. Check for unposted transactions
2. Verify current bank code balances
3. Review transaction clearing dates
4. Confirm all integrated module postings[1]

System Updates Ensure that:

• All modules are properly integrated
• Software is updated to the current version
• Bank feeds are functioning correctly[2]

Integration with Other Modules

The Bank Reconciliation module seamlessly integrates with:

• Accounts Receivable
• Accounts Payable
• Payroll
• Purchase Order modules[2]

This integration provides comprehensive financial management and accurate cashflow projections across your organization.

Reporting Capabilities

The module includes essential reports for financial management:

Standard Reports

• Bank Reconciliation Register
• Bank Transaction Recap Report
• Estimated Cashflow Analysis Report[2]

These reports provide valuable insights for financial decision-making and audit purposes.

Maintaining System Efficiency

To ensure optimal performance:

Regular Maintenance

• Purge cleared transactions periodically
• Archive historical data appropriately
• Update system parameters as needed[6]

Data Management

• Maintain accurate bank code information
• Regular backup of reconciliation data
• Monitor system performance[2]

The bank reconciliation process in Sage 100 is a powerful tool for maintaining accurate financial records and ensuring proper cash management. By following these detailed steps and best practices, organizations can maintain accurate financial records while maximizing the efficiency of their accounting processes. Regular reconciliation not only ensures accuracy but also provides valuable insights for better business decision-making through comprehensive reporting and analysis capabilities.

Citations: [1] https://www.youtube.com/watch?v=jIyJ6pNMkec [2] https://www.swktech.com/erp-resources/sage-100-resources/sage-100-bank-reconciliation/ [3] https://www.swktech.com/tutorial-sage-100-bank-reconciliation-tips-tricks/ [4] https://www.youtube.com/watch?v=JTVflfZgpKE [5] https://www.acutedata.com/how-to-enter-or-delete-bank-reconciliation-transactions-without-affecting-the-general-ledger/ [6] https://help-sage100.na.sage.com/2018/Subsystems/BR/BRMainProced/Purge_Cleared_Documents.htm [7] https://help-sage100.na.sage.com/2024/Subsystems/BR/ConceptTopics/Clearing_Documents_in_Bank_Reconciliation.htm [8] https://www.acutedata.com/sage-100-purge-cleared-transactions-bank-reconciliation/ [9] https://www.youtube.com/watch?v=Ziea43_trRA [10] https://www.youtube.com/watch?v=90LjxaybdW4 [11] https://s-consult.com/2024/06/05/how-to-purge-cleared-bank-reconciliation-transactions-in-sage-100/ [12] https://www.accountingadvice.co/sage-100-bank-reconciliation/