Reconciliation of the Cashbook ensures that bank transactions recorded in Navigator align with the actual bank statement. This process helps maintain accurate financial records and provides visibility into outstanding or unrecorded items.

Steps to Reconcile the Cashbook

1. Access the Reconciliation Screen

  1. Navigate to the Accounts module.
  2. Select the Reconcileoption.
    • If there are multiple bank accounts, choose the account to reconcile.

2. Verify Opening Balance and Date

  • The screen will display the Opening Date and Opening Balance from the last reconciliation.
  • These fields are system-generated and cannot be amended by the user.

3. Enter Closing Details

  1. Input the Closing Date and Closing Balance from the bank statement.
  2. The system calculates the difference between the opening and closing balances, representing the transactions that need reconciliation.

4. Reconcile Transactions

  1. Match Transactions:

    • Select the first transaction from the statement.
    • Double-click the corresponding entry on the screen.

  2. Enter Clearing Date:

    • Input the day (not the full date) when the item cleared the bank.
    • Press Tab to populate the date in the “Day Cleared” field.

  3. Move Reconciled Items:

    • Reconciled items will move from the Un-Reconciled tab to the Reconciled tab.
    • The Outstanding figure at the top of the screen will update accordingly.

  4. Un-Reconcile if Necessary:

    • Double-click a reconciled line to move it back to the Un-Reconciled tab.

5. Linking Transactions

  • If two transactions in Navigator appear as a single line on the bank statement, link them:
    1. Select the Link button.
    2. Choose a previously reconciled line to link with the current one.
    3. Both transactions will appear linked in the Reconciled tab, sharing the same identifier.

6. Post Missing Items

  • If a bank statement item hasn’t been posted in Navigator, you can post it directly from the reconciliation screen.

  1. Use the Post menu to select:

    • Vehicle Receipt
    • Sales Ledger Receipt
    • Purchase Ledger Payment
    • Nominal Journal
    • Cash Book Payment

  2. Cash Book Payments:

    • These are single-sided entries.
    • The offset posting will appear as a reconciling item after selecting the Refresh button.

Completing the Reconciliation

  1. Save the Reconciliation:

    • It is only necessary to save when the Outstanding Amount is Zero.
    • Click the Save button.

  2. System Prompt:

    • Confirm the reconciliation by clicking Yes.
    • The system will:
      • Reset the opening date and balance to the closing date and balance.
      • Increment the opening date by one day for the next reconciliation.

  3. Next Reconciliation:

    • Enter the new Closing Date and Closing Balance before starting the next reconciliation.

Key Notes

  • Automatic Saving: The system saves progress as you reconcile or un-reconcile items, so saving is only required for a fully reconciled Cashbook.
  • Linking Transactions: Use the linking function for multiple Navigator transactions represented as a single bank statement entry.
  • Accurate Dates: Ensure that the closing date and balance are correct before starting reconciliation.