This feature, denoted by the “Reconciliation Account” Boolean on the Chart of Accounts (COA) – General Ledger (G/L) Account Card, might be unfamiliar to some users. In this article, we will delve into the workings of this feature to provide a clearer understanding of its purpose and functionality.
Procedure
To utilize this feature, navigate to the Chart of Accounts and identify the specific G/L Account where you intend to perform a transaction. Access the G/L Account, and within the General Section, locate the “Reconciliation Account” Boolean. Enable this Boolean to activate the reconciliation functionality for the selected G/L Account.
Now, let’s put this feature to use. Open any journal—let’s use the General Journal for this example. In the Home Section, simply click on “Reconcile” to start the reconciliation process.
Following the activation of the “Reconciliation Account” feature, you’ll encounter the specific account you enabled, such as the Delivery Expenses Account in this instance.
Understanding the Metrics
- Net Change in Journal = 0 – This indicates that there are currently no transactions for Delivery Expenses in any Journal. It’s a clean slate.
- Balance After Posting = 13.20 – This signifies that there are transactions recorded in the system on previous dates, resulting in the current balance of 13.20 for the Delivery Expenses Account.
Currently, there is only one transaction visible in the General Ledger Entries.
Now, let’s make a new transaction in the General Journal for the Delivery Expense, and this time, the transaction amount will be 1000.
It’s important to note that the recent transaction made in the General Journal for the Delivery Expense has not been posted. Now, navigate back to the Reconcile option and observe the changes that occur after this transaction.
After introducing a new transaction of 1000 in the General Journal for the Delivery Expense and revisiting the Reconcile option, you will notice the following changes:
- Net Change in Journal = 1000 – This indicates that there is a transaction currently present in the Journal, specifically the recent entry for the Delivery Expense.
- Balance After Posting = 13.20 – This signifies that there are transactions posted in the system on previous dates, contributing to the existing balance of 13.20 for the Delivery Expenses Account.
Now, proceed to the General Journal and finalize the transaction by posting it. After posting, recheck the Reconcile feature to observe any further adjustments.
Following the posting of the transaction in the General Journal, the reconciliation metrics show the following changes:
- Net Change in Journal = 0 – There are currently no transactions for the Delivery Expense present in any Journal.
- Balance After Posting = 1013.20 – This indicates that new transactions have been successfully posted in the system, reflecting the updated balance for the Delivery Expenses Account.
To delve deeper into the details, let’s check the General Ledger Entries for a comprehensive view of the recent changes.
Great! Upon checking the General Ledger Entries, you can indeed see the 1000 Amount Transaction, confirming that the recent entry for the Delivery Expense has been successfully recorded in the system. If you have any further transactions or inquiries, feel free to proceed with confidence in your reconciled records.
This concludes the article on understanding the “Reconciliation Account” feature. 🌐 I hope it was helpful in clarifying the functionality and steps involved. If you have any further questions, feel free to reach out. 🚀