Bank Reconciliation Overview

Use the Bank Reconciliation feature to reconcile STORIS transactions against transaction data supplied by your bank. STORIS tracks all bank deposits and processes them via the End of Day process. The process creates a deposit record per bank, per location, per user-defined deposit-type code.

In addition to screens for both manual reconciliation and reconciliation adjustments, this feature includes a facility you can use to import reconciliation data via a CSV-type spreadsheet received from your bank.

 To use this feature, you must be using STORIS Accounting.

Payment Classes

Throughout the business day, STORIS receives monies into the system through various processes such as Sales Order Entry and Customer Payment Entry. Within STORIS, the system divides these monies into the following classes.  STORIS creates bank reconciliation records for most of these classes:

1. Cash

2. Checks

3. Credit Cards

4. Third-Party Financing - to assign deposit type codes to class 4 (Third-Party Financing), use the Finance Provider Settings.

5. Miscellaneous

6. Debit Cards

7. Gift Certificates - you cannot assign deposit type codes to class 7 (Gift Certificates).  

Document Numbers and Deposit Types

When posting deposits to the Bank Reconciliation file, STORIS builds the document number as follows:  

{mmddy}:{deposit type}:{sequence number}

in which

• mmddy is the two-digit month, two-digit day, and last-digit-of-the-year date,

• deposit type is a user-defined, two-digit numeric code used for bank reconciliation, and

• sequence number is a three-digit number assigned by STORIS.

To create deposit type codes, use the Reconciliation Deposit Type Settings.  Then use the Bank Settings to assign the codes to payment classes, with the option to assign overrides to specific payment types within each payment class.

Bank Reconciliation File

The Bank Reconciliation file is an internal file that stores all STORIS-generated reconciliation records.  If Bank Reconciliation is active, the system creates records automatically in the Bank Reconciliation file when you:

• enter payments for payment classes or payment types set up for reconciliation in the Bank Settings,

• use the daily Balance Approval by Manager process to enter exceptions such as overages or shortages,

• use the Apply NSF and Correct Misapplied Payments to enter NSF Non-sufficient funds. checks,

• use the Apply Payments and Maintain Vendor Receivables Balances process to apply Vendor Receivable monies received from a vendor,

• use the Apply Payments From Finance Provider process to apply Finance Receivable monies received from the bank,

• successfully print AP checks (indicated via the All Checks Printed Successfully field in the Print Checks routine), or

• void AP checks.

All payments received over the course of the business day accumulate internally in the cash receipts file. During the End of Day process, payments for which a reconciliation deposit type has been specified accumulate by deposit type.  The End of Day process writes one Daily Deposit record to the Bank Reconciliation file per bank, per store location, per deposit type.

 If you use multiple banks, you can reconcile banks separately.  

To clear reconciliation records from the system, use the Purge Reconciled Transactions routine.  During this process, the Beginning Balance and As-Of-Date fields in the Bank Settings update.

For Electronic Funds Transfer (EFT) batches, the system creates a single bank reconciliation record for the total EFT batch but not for individual payments within an EFT batch.  

Bank Reconciliation Routines

• Use the Enter a Reconciliation Transaction routine for any of the following:  

- bank charges,

- accrued interest,

- bank-to-bank transfer of funds,

- bank errors,

- reconciliation adjustments, etc.

Use the Enter a Reconciliation Transaction routine for any transactions that might affect reconciliation but which are not automatically generated by STORIS.

• Use the Import Bank Transactions with Automatic Reconciliation to import reconciliation data from your banks and automatically reconcile matched transactions in STORIS. The bank data must be in the form of a CSV-type spreadsheet.  The routine imports the data into STORIS and attempts to match the data to transactions generated in STORIS.  In this way, all matched transactions reconcile automatically.  To activate a bank for automatic reconciliation, use the Bank Settings.

This process yields two reports:

- Report Cleared Transactions - shows all matched transactions based on the imported data

- Report Reconciliation Errors - shows errors and/or unmatched items from the spreadsheet-download process.

To fix issues encountered during the Import Bank Transactions with Automatic Reconciliation process, use the Enter a Reconciliation Transaction routine. If not using the automated process, use the Reconcile Bank Transactions Manually routine to manually reconcile the data in cases where bank downloads do not occur or are not available.

• Use the Report Reconciliation Transactions routine to display a full reconciliation report, complete with beginning and ending balance.  You can run the by bank and/or by store location, and for a user-specified range of dates.

Settings

• Bank Settings - use the Reconciliation tab to activate the Bank Reconciliation feature as well as specify default deposit types for many payment classes such as Cash or Check.  Use the Payment Type Override Settings to override the default deposit type (if any) for a payment class by specifying default deposit types for individual payment types within a payment class.  You also use the Bank Settings to activate banks for automatic reconciliation.

• Reconciliation Deposit Type Settings - specify your bank reconciliation deposit types.

• Reconciliation Transaction Type Settings - specify your bank reconciliation transaction types.

• BAI Code Settings - specify descriptions for BAI Banking Administration Institute - a professional organization for the financial services industry. codes to appear on reports for informational purposes.

• Finance Provider Settings - use the Bank Reconciliation Funding Type field on the Misc tab to activate a finance provider for bank reconciliation.

• Vendor Receivables Control Settings - use the Bank Reconciliation Deposit Type field to activate vendor receivables for bank reconciliation.