How to Reset the Bank Reconciliation in Sage 50

The reasons to reset the bank reconciliation in Sage 50 are plenty and important. The prime reason for this is the fact that your Sage 50 bank balance and your actual bank balance should ‘tally’ together. However, since we are in the digital era, it is necessary to ensure that ‘you reset’ the system accordingly to be able to get the required results.

Well, resetting a bank reconciliation can be done in a couple of ways. But before you get into the ‘thick of things you need to know one thing for sure you need to back up your files and all the data in a precise manner to not lose any of it in the process of ‘reset’. In case you are incapable of doing so yourself, it is recommended that you get professional help to do the same. Now let’s get into how to reset the bank reconciliation in Sage 50.

Steps to Reset the Bank Reconciliation in Sage 50

To reset or clear previous bank reconciliations in Sage 50, create a backup, generate a report of outstanding transactions, and then clear reconciliation info by disabling and re-enabling the bank account.

Step 1: Create a Backup

Foremost it is important to create data in case all the previously stored completed bank reconciliation information has been permanently lost.

To perform a Backup opening of your file:

• Firstly you need to be logged in to the company that you need to back up on.
• You need to be in a ‘single-user mode if you are using any of Sage 50 Editions (Premium or Quantum).
• Go To File > Backup
• You can also utilize the toolbar at the top of the Home Screen to select the Backup Icon. This looks more like a file cabinet.
• Now, you need to enter the file name in the Sage 50 Backup Window.
• This is the step where you need to incorporate the date, e.g.: UC141222.
• Now, select the folder where you need to SAVE your backup.
• It is important to bear in mind that you do not save the file at the SAJ FOLDER. The reason is the fact that most software backup files are stored here.
• Most users need to know that the most recent backup files are remembered and are utilized for the default and subsequent backups.
• In case there is no requirement to overwrite the existing backup, you do not need to do it.
• Lastly, click on OK and let the Backup start.

Step 2: To Acquire the List of Outstanding Transactions

• First, select REPORTS > BANKING > ACCOUNT RECONCILIATION REPORT
• Secondly, use the ‘Report Type: this is the summary report with Outstanding transaction detail.
• Select the appropriate Bank Account and select the Appropriate Start Date and the Finish Date.
• This helps to display the current successfully reconciled Period
• Now, go to and select the Option ‘Report By Statement End Date’.
• Next, click on OK to view the Report.
• Lastly, SAVE the report by selecting PRINT or ‘OPEN IN EXCEL’.

Step 3: To Clear the Bank Reconciliation

• You need to start by double-clicking on the Chart of Accounts. In case you are viewing the ENHANCED VIEW, you need to go to the Chart of Accounts> Company Tab, which is located from the LEFT PANE.
• Now, you need to double-click on BANK ACCOUNT.
• Select the tab ‘RECONCILIATION & DEPOSITS’.
• Now, unclick the box next to ‘SAVE TRANSACTIONS FOR ACCOUNT RECONCILIATION.
• Close the account by clicking on SAVE AND CLOSE.
• Finally, complete the process by clicking on OK to eliminate all reconciliation information.

Step 4: To RE-Enable the Bank Account for the Process of Bank Reconciliation

• Start by double-clicking on the BANK ACCOUNT.
• Now, select the tab ‘RECONCILIATION & DEPOSITS’
• Click on the checkbox the box next to ‘SAVE TRANSACTIONS FOR ACCOUNT RECONCILIATION.
• Now, select the SETUP button that will emerge at the bottom of the page.
• Now, the setup revenue accounts for: Interest income, Error Gains, Adjustments, and Exchange Gains.
• This also helps the users to create an Expense account for Bank fees, Interest rates, and non-sufficient fund fees.
• Finally, you can close the account by clicking on the ‘Save & Close’ tab.
• Lastly, you need to close the accounts window by clicking on the ‘X’ located at the corner.

Step 5: Set up the Bank Reconciliation once more

• Firstly you need to open up the ‘ Reconciliation & deposits’ journal and select the appropriate bank account.
• Now, you need to re-enter the Reconciliation date, Statement End date, Statement Opening Balance, Statement End Balance, and Statement Start Date for the month you need to reconcile.
• Next, click on ‘Add Prior Outstanding’ to state the opening outstanding. For this, you will need to manually bring back the transactions that are outstanding of your statement start date, by the means of the report you export/Printed in STEP 2.
• You need to bear in mind that only the transactions that have been dated between the Statement Start date and the Statement End date, are going to be automatically imported by Sage 50.
• Now, you need to set the date within the ‘Slow Resolve Trans’. After this go to ‘On or After’, till the oldest outstanding transaction.
• Now, select the OUTSTANDING TRANSACTIONS from the list of RESOLVED TRANSACTIONS.
• To move them to the Outstanding transactions list, you will need to click ADD.
• In case an outstanding transaction which is outstanding in case of the Statement Start Date does not emerge in the RESOLVED TRANSACTIONS list, even after modifying the search date, you will need to click on the INSERT OUTSTANDING tab and make a manual addition.
• Now that you have made the addition of all the outstanding transactions, you need to click on OK. It is recommended that you leave the Outstanding transaction list empty and select OK in case you do not have any outstanding transactions you need to introduce.
• Lastly, you need to offer one more trial attempt to reconcile your bank account.

Similar Topic: How to Undo Last Reconciliation in Sage 50

Reasons to Clear Previous Bank Reconciliations in Sage 50

Some of the main reasons for the individual to reset the bank reconciliation in Sage 50 are:

• There has been a case where the accounts of the previous month have already been uploaded and a new amount needs to be posted.
• Despite the ending balance and the Open balance being equal, there is no clarification, as there seems to be an amount that is still not clear.
• The Sage 50 edition that you own is reading the wrong figures. This can be because wrong data has been entered into the bank reconciliation database.
• There are cases when Sage 50 does not have the properties to reverse the bank reconciliation for a certain month.

Read More: Resolve Sage 50 Bank Feeds Error

Conclusion

So, there you have it ‘accounting people, these are some of the vital aspects of the various facts, features, and other details of RESETTING THE BANK RECONCILIATION IN SAGE 50. It is advisable to go through all the steps appropriately to make the most out of the SAGE 50 software.

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