Trust Bank Reconciliation

This section covers the Trust Bank Reconciliation. This process is used to reconcile the DebtCol trust account to the trust bank statement.

Accounting > Trust > Trust Reconciliation

To ensure the accuracy of your trust account records, you should make sure the records of your bank account balances in DebtCol match your bank’s records.

To reconcile your trust bank accounts

1.   In the Bank Code field, select the trust account. The bank account details will be displayed in the “Account Details” frame and the account totals will be displayed in the “Totals” frame.

2.   Under “statements” choose “start a new statement”. It should automatically know what the next statement number is.

3.   Enter the statement date (which is the end date or the date of the bank statement; normally last day of the month). You will likely need to produce a bank rec report for an entire month, so whether you do a daily bank rec or note, it is recommended to always set the statement date as the last day of the month for ease of reporting during an audit.

4.   Enter the bank statements closing balance into the “New Statement Balance” field then click “Locate” to retrieve all the transactions.

The transactions will feed into the table and you can set about finding your matches and ticking them.

·         “Cleared” is cleared and on the bank statement

·         “Unpresented” are refunds generated within the month but not on this bank statement

·         “Uncleared” are receipts on hold for clearance.

The second table will contain trust transactions in DebtCol that are past the statement date. If there are reversals and corrections made after the statement date, they will appear here so you can tick “include” to add them into the top table to be included in the bank rec.

You can progressively save your bank rec if you are unable to complete it for any reason. Simply click the “Save” button on the action bar.

When you do this, next time you come back in the statement will appear in the list of statements as (open). Just select the statement from the list and it will allow you to continue on.

When you have finished reconciling a statement you can click “Finalise”. This option will only be possible if you are not out of balance.

Next time you come back into the bank rec screen, the statement will show in the list of statements as (Complete).

Once finalized you can click on the "Reports" button on the action bar to generate the following reports:-

·         *****Trust Reconciliation Report

·         *****Trust Trial Balance Report

Make sure you enter the statement number where indicated on the query.

To correct an un-reconciled amount

1.   Check the following:

         i.    Did you type the correct figure in the New Statement Balance field? You need to type the closing balance from your bank statement, not the opening balance.

        ii.    Did you type the correct date (that of the closing balance from your bank statement) in the Statement Date field? An incorrect date may prevent some transactions from appearing in the list.

       iii.    Did you select the transactions that appear on the bank statement? If not, some transactions might not have been accounted for in the reconciled balance.

      iv.    Did you select, by mistake, a transaction that didn’t appear on your bank statement? If yes, you need to deselect this transaction.

2.   Did you incorporate all bank charges and bank interest entries that appear on your bank statement, into the New Statement Balance field? If not, you need to sum them and incorporate them into the New Statement Balance field OR add them as a Trust Journal. Repeat the reconciliation procedure. If your account is still out of balance, then there may be transactions on the bank statement that have not yet been entered into DebtCol.

3.   If you have transactions on the bank statement that are missing from DebtCol:

         i.    Enter the transaction into DebtCol

Repeat the reconciliation procedure.