Description

NOTE: If you do not see a Reconcile tab under Cash Management, please reach out to your support team at support@softledger.com to request access to the Cash Management>Reconcile beta program.

The Cash Management>Reconcile module is where users can create and manage their general ledger account reconciliations, and create a statement for a location, ledger account, posted currency, date period combination. This module will allow users to reconcile any ledger account, but it is best suited to reconciling bank accounts or credit cards against their representative ledger accounts within SoftLedger.

How to complete a reconciliation

Navigate to Cash Management>Reconcile. Reconciliation statements can be created and reconciled from this page. 

Create a new statement

Click +NEW button in the upper left of your screen to start a new statement.

• Fields:
  • Location
  • Ledger Account
  • Statement Currency
  • Statement Balance - this is the user-entered value, generally coming from a bank or credit card statement
  • Statement Date
  • Reference

NOTE: The system will generate a unique ID for each reconciliation statement. This unique ID value is used to discern between different statements, and can be used to drill in and review reconciliation statement. 

Complete a reconciliation statement

Once the statement is created, drill in by clicking into the system generated unique ID value to the statement View. The statement is split into two components. 

• Statement Details - statement level field such as Ledger Account, Location, Date, etc.
• Statement Transactions Table - Journal Lines for the Account/Location/End Date combo to be reconciled

Statement view:

The statement details in the upper portion of the statement include:

• Statement Date
• Last Statement Date - the last end date this Account/Location/Currency combination was reconciled
• Ledger Account
• Location
• Currency - the Journal Lines in the table will only pull the Journal Lines for the Ledger Account and Location entries in the Posted Currency matching the selected Currency for the statement.
• Status
• Statement Balance user created value entered when creating statement (generally from a bank account or credit card)
• Cleared Balance - the balance of the reconciled transactions
• Beginning Balance - the balance from the last reconciled statement date (previously chronologically)
• Sum Debits
• Sum Credits
• Variance - the difference between the statement balance and the cleared balance

Journal lines can now be reconciled and unreconciled by selecting the checkboxes next to the transactions you’d like to update. Multiple selections are supported in this view, but selections will not hold as you change pages, so it is important to take action before changing pages.

See a selection of the first 5 lines of the available journal lines for the reconciliation of this Ledger Account/Location/Date/Currency combo:

Note: Only unreconciled transactions can be reconciled, and only reconciled transactions can be unreconciled. If you attempt to take action where that is not the case, you will see an error like the below:

Important Considerations:

• Statements are always sorted by “endDate” in descending order in the statement table (Cash Management>Reconcile)
• Custom currencies are not supported when creating statements
• Created statements must have an “endDate” after the most recently closed statement with the same Location/LedgerAccount/Currency combo (i.e. you can not complete a reconciliation prior to a previously created reconciliation, they must be chronological)
• All newly created statements are set to ‘open’ status
• Statements cannot be closed if any previous statement is open that has the same Location/LedgerAccount/Currency combo (i.e. statements must be closed in chronological order)
• Statements cannot be reopened if any later statements are still closed with the same Location/LedgerAccount/Currency combo (i.e. statements must be either opened or closed in chronological order, similar to how accounting periods work)
• Once you create a statement, you can not edit that statement, but rather delete and restart
• On the technical side, we now have a statement object to represent bank statements, which contains the following details:

{
    _id: number;
    reference: string;
    description: string | null;
    LedgerAccountId: number;
    LocationId: number;
    status: string;
    currency: string;
    endDate: string;
    balance: string;
    createdAt: Date;
    updatedAt: Date;
}