Why is My Reconciliation Report Out of Balance?

Reconciliation reports may show imbalances for several reasons, often linked to manual journal entries that bypass Navigator’s processes.

Key Points to Remember:

1. Avoid Manual Journals for Certain Accounts:

   • Never post a manual journal via Nominal > Post Journal for accounts 0.0.70.2, 0.0.60.1, or 0.0.70.8. Doing so will cause the reconciliation report to go out of balance.
   • If your reconciliation shows blank lines, these are likely due to manual journals posted to control accounts. These need to be reversed by running a transaction report filtered by account number.

2. Correcting Purchase and Sales Ledger Entries:

   • Any corrections to Purchase or Sales Ledger accounts should be made through the account directly or via SL>NL or PL>NL journals. Posting directly to accounts like 0.0.70.2, 0.0.60.1, or 0.0.70.8 will not update the actual ledger account and will lead to discrepancies.

3. Vehicle Stock Reconciliation:

   • For accounts like .3.60.80, if a manual journal is posted, it will cause the reconciliation to go out of balance, as it won’t match the cost analysis on the vehicle stock record. Corrections must be made through the vehicle stock record, ensuring that the figures in .3.60.80 match the amounts in the vehicle's cost analysis.
   • Closed batches also affect .3.60.80, so make note of any batches in .3.10.30, which are related to deal transactions, and exclude these from your calculations.

Steps to Identify and Fix the Imbalance:

1. Determine When the Imbalance Occurred:

   • Use the << and >> buttons on the reconciliation report to roll back through dates until you find the last time it balanced. Note any discrepancies as you review the dates.
   • Remember, the date showing on the report (e.g., 13/03/17) could indicate an imbalance that occurred either on that day or the day before.

2. Check for Backdated Entries:

   • Entries causing the imbalance might be backdated by a couple of months but will only show out of balance on the date they were processed. Consider setting a back posting prevention date at the end of each month to prevent this.

3. Regularly Review the Reconcile Report:

   • It’s advisable to check the reconcile report daily. Identifying and correcting imbalances immediately is much easier than addressing them months later.

4. Using the Transaction Report:

   • For accounts like 0.0.60.1, 0.0.70.2, and 0.0.70.8:
     • Go to Nominal Ledger > Transaction Report.
     • Enter the nominal code and specify the date range from just before the imbalance to the date it occurred.
     • Filter by the required account and review the reference column. Manual journals or reversals will often have references starting with "Reversal."
     • Reverse any incorrect transactions and make corrections via the appropriate Ledger.

5. For Vehicle Stock Accounts (.3.60.80):*

   • Double-click the reconciliation entry to view the list of stock numbers.
   • Run a transaction report using the "Search" tab by stock record, excluding the branch suffix to capture all related transactions.
   • Filter by nominal code, and ensure entries match the cost analysis. Reverse any incorrect entries through Nominal > Reverse Journal.