Bank Reconciliation
The Bank Reconciliation process compares the organization’s payroll records to the bank’s checks and direct deposit records to find inconsistencies that occurred during each pay cycle process. In addition, any checks that have been cleared by the bank will be marked in the system.
The Bank Reconciliation process starts with information received from the bank that handles your organization’s bank account program. This information is sent in machine-readable format in the form of a tape, and provides the follow-up to the paycheck and electronic funds transfer tapes that you have sent to the bank during pay cycle processing. The bank tape contains information on all cleared checks and deposits including the check number, check amount, processing date, and the check disposition.
During the Pay Cycle Bank Reconciliation, the bank tape is processed against the system files containing outstanding checks. This program matches the checks on the tape to the checks in the system files. Where there is a match, the check is marked as cleared by the system, the check disposition date is updated, and the check status is changed to Pay Check Cleared.
Reports Used for Bank Reconciliation
The following reports are generated by the Pay Cycle Bank Reconciliation (HA01200R) process:
Bank Reconciliation Exception (HAR6700) ReportBank Reconciliation Exception (HAR6700) Report
The Bank Reconciliation Exception Report (HAR6700) provides a list of the checks for which the bank status and the system status differ. This report is produced after the bank tape and the system files are compared. The information provided on this report includes the check date and number, the bank status, the system status, the employee name and ID, the appointment ID, the alternate ID, the system amount, and the bank account number.
The Bank Reconciliation Stopped Checks Report (HAR6800) provides a list of all checks that have a status of stop payment. These checks have a status of “Redeposited.” The information provided on this report includes the name of the bank, the amount, the check number, the date of the check, and the recipient.
The Bank Reconciliation Outstanding Checks Report (HAR6900) provides a list of outstanding checks on the database. These checks have a status of “Pay Check Outstanding.” This report is based on a comparison of the system check statuses against the bank statuses. The information provided on this report includes the check date, the check number, the employee name and ID, the appointment ID, the alternate ID, and the amount.
Each report lists the check numbers for the pay cycle and the appropriate status and should be used to verify the accuracy and completeness of the bank information. Any discrepancies should be fully investigated and any errors discovered should be corrected.
