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Bank Reconciliation

The Bank Reconciliation function within CDM+ allows for a quick and easy way to mark which items have cleared the bank and which have not. After all the items which appear on the bank statement have been identified, then the program will provide a printout of all items which have not cleared the bank and indicate that the system is in balance with the bank statement. Bank Reconciliation sessions are saved in CDM+ and can be reprinted at any time.

  1. Go to Program Ledger Bank Reconciliation
  2. Click on the small Add button to start a new Bank Reconciliation session. CDM+ will automatically display the first day after the date of the last bank reconciliation and an ending date one month later. You can override these dates if necessary. Enter the ending bank balance along with the date information. If you have multiple checking accounts, be sure to indicate the correct checking account in the Account column.

  3. Choose the asset to be reconciled from the drop list. Click OK.

  4. Double-click on the Uncleared Items on the left-hand list to move them to the Cleared Items list on the right. If you select the wrong line, click on it again and the program will unmark it. Enter any Bank Charges and Interest under the appropriate tabs on the right.

    You can view the actual ledger transaction by highlighting a line and clicking on the View Selected Entries button at the bottom of the window.

  1. When the Bank Reconciliation session is in balance, click the File button.
  2. Click on the Print button to print this Bank Reconciliation session.

You can Save a session at any time and resume the session at a later time. A filed Bank Reconciliation session may be reprinted any time. Note: Asset line items on a filed Bank Reconciliation session cannot be changed from the ledger.

During the marking of transactions, CDM+ will display at the top right the status of your bank reconciliation session. The Statement Balance is the amount the user entered in on the initial window. The Current Balance is the balance CDM+ maintains from each transaction. The Reconciliation Balance is the Statement Balance plus the total of non-cleared Debits less non-cleared Credits.

Total non-cleared Debits and Credits include all non-cleared items in CDM+. If you have the Hide Items After a Certain Date selected, the list does not show items past that date, but the total non-cleared line does.

As you click on items, the Reconciliation Balance will change and the Difference between the Statement Balance and the Current Balance will be updated. The goal of the reconciliation is for the difference to be zero.

If the Difference is a positive number, it means you show more money than the bank and there are probably cleared checks or bank charges missing or not marked as cleared in CDM+. If the Difference is a negative number, it means you show less money than the bank and there are probably cleared deposits or interest payments missing or not marked as cleared in CDM+. [Clearing credits (checks) reduces the Difference and clearing debits (deposits) increases the Difference.]

Close/Open Periods

Closing a Month

Closing a Month in CDM+ prevents any changes to transactions in that month (except for changing the bank reconciliation Cleared status) and stores the Month End Balance for all account numbers. After a month is closed, a Balance Sheet for that month can be generated at any time. It is a good idea to close each month. By closing a month, if a mistake is found, it is easier to locate the mistake. In addition, closing a month prevents entries from being entered into the wrong period.

Before Closing a Month

  1. Make any Month-End Journal Entries.
  2. Run a Trial Balance (Reports Ledger Reports Balance Trial Balance) using Composite by Date or Composite by Account to verify that all journal entries for the month are in balance.
  3. Perform the Bank Reconciliation.
  4. Run all of your Month-End Reports and review.

Closing a month is date specific to the transaction date. You can continue to enter transactions into CDM+ without closing a month.

To Close a Month

You can close out several periods at once by selecting the last date to which you want to close.

  1. Go to Program Accounting Close/Open Periods

  2. A listing of months available for opening/closing will appear.
  3. The Status column indicates whether a month is Open or Closed.
  4. Click on Close this Period of the month you wish to close.
  5. A Close-Out report is then printed. You may format this report by making selections on the Closeout Report Options tab of the Open/Close Period window.
  6. Verify information and click on Yes to continue. Select No to terminate close-out functions.

Closing a Year

A regular and important year-end procedure is closing out your books for the year. This procedure will update the Period Ending Balance for December of the year you are closing and make this period balance the new Fiscal Ending Balance, replacing the fiscal ending balance of the previous December.

If you are on a different fiscal period than one ending December 31, you can follow this same procedure, using your fiscal ending date.

  1. Before running the Close this Year procedure, run your normal monthly Close Period procedure for the month of December. This will close December and any other prior months that have not been closed.

  2. You will be asked if you wish to the beginning balances for the income and expense accounts to zero. Click Yes.

  3. A Close-Out report is then printed. You may format this report by making selections on the Closeout Report Options tab of the Open/Close Period window.
  4. After the report has printed, you will be asked to verify if the information on the report is correct. If the information is correct, click on Yes to continue. Respond Yes ONLY if you are sure the balances are correct and that all information has been entered for the year you are closing.
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