Manual Reconciliation

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Not that there’s anything wrong with it!

Recently, a user emailed me saying that it appeared that expense from a voided check was duplicated in the OpenRDA software. My first thought was that the processes for the voided check hadn’t been completed. When we shared a session, I asked the user to show me and it turned out that it was a vendor withholding check (which doesn’t affect expenditures).

And, it was then that he said those words–my monthly manual reconciliation. There isn’t anything wrong with doing a manual reconciliation; but, how you do it is so very important. Do you add up all the checks, direct deposits, direct drafts, and other electronic payments for the month? Do you then try to tie that total back to total expenditures for the month (as reflected on the expenditure summary report)?

If so, that’s when it isn’t always going to tie back as you have to take into consideration balance sheet vouchers, voided checks, re-issued checks when the vendor refunds (rather than credits) a previously issued check, the type of voids (expenditure or balance sheet), the fiscal month of the voids, amounts withheld from payroll that have been expensed but not yet paid (such as quarterly unemployment payments), expenditure-type journal entries, expenditure-type receipts, etc.

Bottom line, your manual reconciliation should always contain “lines” for these type of adjustments when you’re trying to tie back to total expenditures for the month. And, here’s another thought: instead of reconciling to expenditures (or perhaps, in addition to), reconcile to cash. That you can take to the bank!



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