Reconciliation Report & General Journal

[Paul Openshaw]

Hi Elizabeth, although Derek's reply was somewhat glib he was 'on the money' 
and it just needed elaborating for you.

Many moons ago I trained as a British Chartered Accountant then worked for 
several years as a Senior Internal Auditor for The Co-operative Wholesale 
Society in the UK before running my own Limited Companies for 30 years.

In my opinion a reconciliation is the adjustment, harmonization and/or 
settlement between 2 records of account created by 2 sources.

I find the Gnucash reconcile feature does this superbly. Having got your 
Gnucash Bank account and the Bank's Statement (BS) in front of you click on 
the reconcile button and enter the new date at which you wish to now 
reconcile the two. (usually the last date on the BS)

The un-reconciled items since the last reconciliation appear in a window 
(deposits and payments) and as you manually tick the item on the paper BS 
you click the item on the reconciliation window. Hopefully all the items 
agree and you end with '0' value un-reconciled. Any discrepancies you amend 
or adjust accordingly along the way. Usually the BS shows items you have 
forgotten so you just enter them in Gnucash.

You file the paper BS with your reconciliation ticks on it (we use a small 
'r' in red, in the trade) and any amendment notes and this is your 
'Reconciliation Record' and is acceptable (as far as I am aware) by all 
fiscal authorities the world over. Your Gnucash Bank account shows the 
reconciled items 'y' or 'n' so you can see at a glance where you are up to.

Hope this helps everyone

Paul Openshaw

--------------------------------------------------
From: "Elizabeth Dodd" <edodd at billiau.net>
Sent: Friday, October 23, 2009 9:51 PM
To: <gnucash-user at gnucash.org>
Subject: Re: Reconciliation Report & General Journal

> On Sat, 24 Oct 2009, Derek Atkins wrote:
>> > 1.       Is there a Bank Reconciliation Report?
>>
>> Yes, it's called a "Bank Statement" and it arrives in the mail every 
>> month.
>
>
> No, a Bank Reconciliation Report is another step after the bank statement
> where you add in the last deposits and subtract the last cheques and show 
> that
> the balance you have recorded still is the same as the bank's record of 
> the
> balance.
>
> -- 
> BOFH excuse #172:
>
> pseudo-user on a pseudo-terminal
>
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