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) Report
Bank Reconciliation Stopped Checks (HAR6800) Report
Bank Reconciliation Outstanding Checks (HAR6900) Report
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.
