Sage 50 Bank Reconciliation Issues, Resetting & Setup

Unresolved and discrepancy amounts may result in bank reconciliations, but there are several solutions to these issues.  The general troubleshooting steps that must be taken in this situation are: Checking the open/end dates at the start of the reconciliation and ensuring that the necessary transactions have been posted in Sage 50 (particularly to the proper date that corresponds with the Reconciliation date range).  The detailed troubleshooting procedures are fully covered in this article.  

When you reconcile, you are confirming that the transactions in Accounting match the ones on your bank statement. If everything matches, the total of all reconciled transactions added to the starting balance will equal the closing balance. To confirm this, the difference will be zero.

When the difference is not zero, it could be because of:

• The statement’s end date is incorrect.
• The statement’s end balance is incorrect.
• Some transactions have the wrong date.
• The starting balance does not match the opening balance on your bank statement.
• A previous reconciliation was saved with a difference.
• A previous reconciliation was saved with the incorrect date.

When the troubleshooting fails and all the entries have been verified as accurate, the last step is to reset the bank reconciliation.  Resetting gives you the option to start the bank reconciliation over at any point in time., You have to pick the most recently successfully posted bank reconciliation for that account.  These problems may be brought on by entries that have entered the system incorrectly for a variety of causes or damaged data.

Why does the user need to Reconcile Sage 50?

When a user reports an error in an account that you have already reconciled for the previous month or when you discover an Unresolved Amount in Sage 50, you may reset the reconciliation amount and make the necessary corrections. Resetting the sum is the recommended step in this situation. 

What exactly is the Sage 50 Bank Reconciliation Discrepancy?

During the tax preparation process, bank reconciliation errors in Sage can happen. Bank Reconciliation Discrepancy is a program created to assist accountants in identifying and fixing these errors. In order to reconcile your bank accounts, you’ll need bank reconciliation statements, which are financial documents that list all of the transactions in your accounts as well as all of the ones that were internally recorded.

According to accounting standards, reconciling a bank account balance in the books of accounts with the difference between the two data should be done as soon as possible. If there is a discrepancy between the two data, it should be investigated as soon as possible.

Why Should I Reset Sage 50’s Bank Reconciliation?

There may be a number of reasons why you should reset the bank reconciliation. Some of them include:

• Account reconciliation for the previous month has already been posted, and a variance amount has been identified.
• There is a balance that has not been settled, even though the ending balance and the open balance are equal and nothing is cleared.
• Because of certain faulty data in the bank reconciliation database, Sage 50 is reading the incorrect numbers.
• Sage 50 is unable to undo bank reconciliations for a certain month.

Solution for resetting the Sage 50 bank reconciliation issues:

Note: If you have a Sage 50 Cloud subscription and are running Sage 50 2020.2 or newer, understand how to reverse bank reconciliations to reverse a single bank reconciliation rather than resetting all bank reconciliations linked with an account.

Step 1: Create a backup.

Make a backup of your data since you will permanently lose all previously completed bank reconciliation information.

Step 2: Compile a list of all outstanding transactions.

• Navigate to Reports, Banking, and Account Reconciliation Report. 
• Select the appropriate bank account, then the appropriate Start Date and Finish Date to view the most recently successfully reconciled period.
• Select the ‘ Report By Statement’ End Date.
• Then select the ‘ Report By Statement’ Option Stop Date
• To view the report, click OK.
• To save this report, choose Print or Open in Excel.

Step 3: Clear the bank reconciliation in Sage 50

• Double Click on the Chart of Accounts. 
•  Then double Click on your bank account.
• Then select the ‘Reconciliation & Deposits’ tab.
•  Save Transactions for Account Reconciliation is marked; uncheck it.
•  By selecting “Save and close,” you can close the account.
•  To delete all reconciliation information, click OK.

Step 4: Reactivate the bank account for the bank reconciliation

• Click once or twice on your bank account
• The Reconciliation & Deposits tab should be selected.
• Mark the box next to Save Transactions for Account Reconciliation with a checkmark.
• At the bottom of the page, the Set Up button be there.
• To set up revenue accounts for interest income, exchange gain, error gain, and adjustments, click on it.
• Additionally, you may create spending accounts for bank fees, NSF fees, and interest costs.
• You can close the account By selecting “Save and close.”
• Click on the X in the corner of the accounts window to close it
• Once you’ve added all the outstanding transactions, click OK.
• Leave the Outstanding Transactions list blank and click OK if you don’t have any outstanding transactions to bring in.
• Now you can easily do a new bank account reconciliation.

Setup for Bank Reconciliation:

1. Double-click on the Account Reconciliation journal to start.
2. Next, decide which bank account you want to set up.  Then, enter the statement’s start and end dates as well as the reconciliation date. 
3. Add the Statement opening and closing balances from the financial institution’s report to the statement.
4. Select the button labeled “ADD Prior Outstanding” after listing all the open issues that date back to the start date.
5. The question “Do you want to save the changes?” appears in a pop-up window. Next, click on OK.
6. Next, make sure that ‘Show Resolved Transaction On or after’ is selected. 
7. Select the ‘Resolved Transaction’ option.
8. To move it to Outstanding Transactions, select Add.
9. Click on Insert Statement if any outstanding transactions aren’t listed in the list.
10. Press the OK button in the end.

How Important is Bank Reconciliation?

Comparing your records to the bank’s records is known as bank reconciliation. You can find any unexpected transactions that might be the result of fraud or accounting mistakes by using a monthly reconciliation. 

Users performed the initial balance adjustment to reconcile and then discovered they should have started from the next month. To deal with this situation, Sage enables you to investigate the Sage 50 Clear bank reconciliation method, which is quite similar to Undo Reconciliation, and clear the reconciliation account to reset the desired value. The difference between the two procedures in Sage 50 is that while resetting reconciliation, you must take a significant number of transactions. 

Conclusion:

This article contains everything you need to know about Sage 50 reconciliation issues and solutions. Connect with our team if you run into any problems while executing these steps or if you require any more help with the reconciliation process. Our experts are accessible around-the-clock to help you and give you the most recent answers. This article acts as a one-stop shop for all Sage reconcile-related issues, including reconciling statements. reconciliatory pharmacies, etc. If you still face any problems, contact our team. In one call, all your problems will be solved. 

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FAQ

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1. How do I set up an account in Sage 50 for bank reconciliation?

• Select Accounts from the Home window. 
• Go to the desired account and open it. 
• Check the box next to Save Transactions For Account Reconciliation on the Account Reconciliation tab. 
• You don’t have to fill out every box; simply click the Set Up button and then choose the income, expense, and adjustment accounts you added in Step 2.

2. How can I fix a Sage bank reconciliation? 

• Verify every purchase against your bank statement.
• Select the check in the Reconcile column if the transaction matches.
• By choosing ‘Reconcile All Entries’ from the drop-down menu next to Interest and Charges, all transactions can be reconciled at once.

3. How can I identify and correct mistakes in my bank reconciliation?

• Check if the beginning balance and the previous ending balance are equal.
• Compare the account balance with the ending balance.
• Check the total of the remaining checks and deposits.
• Check the sum, deposits, and checks of the bank.

4. How is a bank reconciliation set up?

• Acquire bank records. You require the list of transactions.
• Get the company’s records. Open your income and expense ledger.
• Decide where you want to start.
• Check your bank deposits.
• Check your books for income.
• Make all necessary bank withdrawals.
• Verify the costs listed in your books.
• Check the ending balance. 

5. Why isn’t the balance in my bank reconciling?

• Because the date on some transactions is incorrect. 
• The opening balance on your bank statement does not match the starting balance. 
• The date on a previous reconciliation was saved incorrectly.

6. What are the steps for bank reconciliation?

• Compare the deposits. The first thing to do after receiving a bank statement is to compare deposits.
• Adjust the bank statement as necessary. The bank statement needs to be corrected using the accounting records kept on-site.
• Adjust the Cash Account as necessary.
• Verify the balances.