Understanding the Problem and the Need for a Reversal
Errors during the reconciliation process can occur for various reasons—a simple data entry mistake, unposted transactions, or a mismatch in the applicable bank codes during the record bank transfers. For many users of Sage 100 Contractor, it’s not unusual to encounter issues like bank statement reconciliation issues or discrepancies between individual transactions in the transaction journal and the actual bank statement. Perhaps you’ve even experienced a failed trial reconciliation, resulting in outstanding bank transactions or a bank reconciliation flag that signals an error. In such cases, undoing the previous bank reconciliation in Sage 100 is necessary to set the stage for a proper, error-free reconciliation process.
Step-by-Step Guide to Undoing a Bank Reconciliation
Before you begin, always ensure that you have backup copies of your financial records and previous reconciliations. This way, if anything goes awry during the reversal process, you can refer back to the earlier state with accurate records.
1. Locate the Relevant Reconciliation Module
Start by accessing the Sage 100 Bank Reconciliation module. Open the 1-5 Bank Reconciliation window where you can view the bank reconciliation grid, allowing you to identify the specific bank reconciliation flag that requires undoing. Confirm that you have selected the relevant bank and the applicable bank code from Bank Code Maintenance to ensure you are working with accurate bank code information.
2. Verify Current Bank Details and Opening Balances
Before making any adjustments, review the current balance, bank account balances, and Bank Opening Balances. Check that the bank statements and accounts with bank statements match up correctly with the bank account adjustments recorded. This step is critical for ensuring that when you Reconcile Bank, all entries—from journal entry items to unposted transactions—are clear.
3. Undo the Previous Bank Reconciliation
To effectively undo the reconciliation, locate the previous bank reconciliation entry. In many cases, this requires navigating through the 1-Open status or using the query for transaction status in the 1-3 Journal Transactions window. Look for reconciliation reversals in the transaction journal that reflect the reversal of a bank entry. Follow the systematic steps provided within Sage 100, which may involve clicking a check box or a check mark to confirm your intent. This step-by-step approach is critical—each detailed step ensures that you undo the reconciliation process without affecting individual transactions in an unintended way.
4. Review Bank Transactions and Associated Services
After initiating the undo process, closely examine the bank transactions that have been affected. Use Reconciliation Reports and Retrospective Bank Reconciliation Reports - Detailed to review specific bank activity. This includes examining Bank Services and Bank Services-entered transactions to identify any bank adjustments such as bank charges, bank fees, or bank errors that may have been corrected incorrectly. Additionally, check the bank register for a record bank perspective and verify that all outstanding bank transactions are appropriately adjusted.
5. Final Steps and Online Resources
Once the undo process is completed, it’s advisable to run a trial bank reconciliation to ensure that your bank account adjustments, bank balances, and bank activity accurately reflect your actual bank statement. Use available online resources, including video resources provided by Acute Data Systems and other Sage 100 Contractor support forums, to review the detailed steps of the reversal process.
In tandem with these procedures, examine related areas such as Accounts Payable and Accounts Receivable to confirm that no bank reconciliation reversals have inadvertently affected the current period or the financial reporting periods. Verify that the clearing dates for Cash Receipts and cash transactions in Cash Management are correct. In cases where errors persist, you may also need to revisit the Bank Services Transactions For transactions in the Settings menu and Finish menu menu to ensure all settings align with the efficient bank reconciliation processes you aim to maintain.
Furthermore, make sure to update system parameters in your current version using Software updates and Update system parameters to avoid similar issues in the future. This consolidation of step-by-step guides, from preliminary steps to detailed steps, ensures that your reconciliation process is robust and that all bank entry and bank adjustments are meticulously recorded.
Conclusion
Undoing a bank reconciliation in Sage 100 might seem complex at first, but with a systematic approach, you can overcome the challenges and restore your financial records to an accurate state. By carefully following each step—from the 1-5 Bank Reconciliation window to reviewing your bank codes and respective bank activities—you ensure that your bank statements, journal entry records, and overall bank reconciliation process are correctly aligned with actual physical bank transactions.
Mastering these steps not only corrects past mistakes but also reinforces proper cash management and efficient bank reconciliation processes going forward. Whether you’re dealing with customer checks, Bulk check entries, or reconciling physical bank transactions, the methods described here are essential for anyone using Sage 100 Contractor and related modules. Embrace these steps and transform challenges into opportunities for improving your financial oversight and maintaining accurate records for years to come.
