Automatic Bank Reconciliation is a paperless bank reconciliation procedure that is designed to minimize the number of bank statements that must be reconciled by hand each month. Typically, business management firms receive hundreds of monthly bank statements. For the majority of those statements simply clearing checks is sufficient to generate an "in-balance" bank reconciliation report. Performing this repetitive work on most statements uses time of account managers that could better be spent on other tasks.

Since most major banks have the ability to generate a data file, tape or diskette that contains similar information to the "paper" statement, the Bank Reconciliation Program can take that data, process it and in most instances produce balanced bank reconciliation reports. The only effort required by the account manager is to select a menu option and answer three questions. By receiving the data from the bank on tape or disk, bank accounts can be reconciled sooner than waiting to receive paper statements, process them in the mail room, distribute them to account managers, and then have the manager reconcile each account, one by one.

The program reads the bank statement data for the client's bank accounts, one by one and clears each check that cleared on the statement, making note of any errors.

The program clears General Ledger checks first, then Accounts Payable checks and finally Payroll checks.

If defined, the program will make journals in the client's books, recording various other transactions that occur on the statement e.g. journalizing interest earned for the month.

For any transaction types that were not defined to be journalized, the program creates "unbooked adjustments" for purposes of running the bank reconciliation report later. Examples of transactions that would probably not be defined to be journalized are service charges and service charge reversals.

The program verifies that the client's books are posted at the statement date. If not, the ledgers are automatically posted to the statement end date. If the statement end is not the month end, the program will post to the month end date.

The program runs the GL RPT-BANKREC (the normal bank reconciliation report).

If the program logged any errors during processing, it prints an error report.