Bank Conciliation The aim of this paper is to identify control points that must be managed for a bank conciliation from the point of view of control of income and payment for services or expenses, after application of electronic invoicing.

The approach we will give it to those companies that have revenues in each of the geographies points, where they have facilities or service and generate payments centrally, although it may be the case that some of their offices might incur payments.

Setting of operating an information system for the control of income and expenses for companies with geographically diverse representation.

Control of income. Before we get into the bank conciliation, the points begin to describe the daily operation:

  • Activity days Work Center customers are received and given the service or sale of products or parts or parts that are dedicated to turning the company.
  • It can be implemented or not, the withdrawal of certain schedules to reflect on fajillas management or piggy deposits provided by the companies collection of values. For our analysis we assume that if resources are removed during the day, make partial cuts, a cut is made final and definitive closure to the public and the assembly of the bag to deliver to the collector of values, in addition to it has an information system which records the partial cuts and the final and definitive.
  • The growth of geographic representations customer service makes our operation modified and have to adapt the controls to know in a timely manner the amount of services or sales on the previous day, here are some cases:
    • t has contracted the collection of values and found that:
      • Could not remove the resource collection because the truck did not come.
      • The securities firm does not cover some routes within their geographic locations.
      • The custom of delivering resources are not presented or have trouble because they had no light, the application failure or simply cutting the numbers do not match the system amounts of cash you have.
    • This makes the implementation of forms that do have the resources or know the day before the expected amount and this may involve:
      • That a branch make deposits at the bank branch that handles "concentrating account" of the resources of the company's sales.
      • That branch personnel where there is no collection service values and does not have a bank branch to deposit the result of sales, bring other resources to represent the company.
      • Another circumstance is when the figures do not tally the final cut the teams throw and while do not clarify the financial resource deposits and remains in the branch.
      • You can also give the values collection service pass only certain days of the week, which would force each branch under this scheme to maintain custody resources to deliver the money, but do not end here even chance points, why :
        • When making a bundle and seal, the carrying amount is different content.
        • Some of the names is a counterfeit.
        • They are grouped into a single bag several days income.
        • No time deposits because they took resources to purchase or pay for services for non-urgent or assignment of "petty cash" for some unforeseen and take what they have and add a note to the supporting documentation that is sent to corporate, inter alia .
    • Now let's focus on the receipt of the statements we received from the bank where we have hired the services of a "concentrator account":
      • The agreement is to receive the income deposited "day immediately preceding" but consider that:
        • The time of closure of bank branches over time it closes the branch of the company or the day the collection service values makes deposits.
        • Having agreed with the heads of each geographical representation of the company and the financial institution, using formats or deposit slips that must occupy and the account to which resources should be concentrated.
      • Facing the reality we find several points of opportunity, such as:
        • What to do when deposited in other bank accounts?.
        • What to do when we make deposits several days in a single exposure?.
        • As a control the "money or financial resource in transit"?.
        • You must request the information system for better control?.
      • The next step in this chain of activities is the content of the files we receive from the bank via email or through a dedicated portal to take the information, some details are:
        • Nomenclature was agreed to identify each branch and is not respected in some cases.
        • The date of the application dates are captured bad and may even contain other information.
        • It captures a character walks over and bank record information.
        • For a communications problem, the file arrives incomplete bank deposits.
        • The control numbers are different.
        • They sent another day movements and may be from another account.
      • In addition to this, we must ensure that the balance of the bank account must be endorsed by the previous balance plus the movements of the day.
      • It is also important to know that not always match the cents of the amounts reported by the bank and the information system of the company.

The information system for the bank conciliation.

  1. Conciliation of income.

Given the above scenario, the development of an application that allows the bank reconciliation of daily income must be versatile in order to control the above, we analyze it by parts:

  1. The bank reports or statements.

Depending on the type of financial institution, of the contracted services and the volume of transactions generated by a company, you can give one of the three cases described below, none of which is exclusive, that is, a company can have any of the 3 services and even 3.

    • Withdrawal of deposits and payment information of a bank's website.
    • Receiving e-mail file movements, and
    • Desk paper statement.

It is common for deposits are separated payments, as companies usually handle concentration accounts for income and paying bills to cover its commitments. 

A.1. Analysis of income report. The format is comprised of two main sections, the header and detail.

    • The header. A set of lines and other data showing the account number, the beginning balance, ending balance, movement No. payment and amount thereof. This composition changes depending on the financial institution.
    • The Detail. This compound each item by the date of the motion, in operation, the amount of movement, assembly areas agreed with the client to identify inter alia that the corresponding branch or resort can be a key reference and other information .

 Before applying this information to the bank, you have to perform a quality analysis to it, for example:

    • Taking the previous balance, movements and corroborate apply the final balance.
    • Agreed that the keys that identify the container are correct.
    • The dates correspond to the deposits are correct.
    • Detail in the number and amount of movement coincides with the header data.

The reality is that sometimes we find that the file received or taken from a website can have several details like:

    • No detail corresponds to the header data.
    • We send information to another date of operation.
    • Unless data amounts, the remaining information may be incorrect due to poor capture or filling the deposit slip.
    • The file is corrupted.

Despite the foregoing information system, in the part of the validation of the data received must fulfill at least the following:

    • Configuring the bank file format is received, with this, if you change the file format is received, only the change of some data from the parameter table so you can continue normal operation.
    • Implement correct criteria for "almost" automatically capture errors, an example would be:
    • If we have identified over time containing errors received from the bank files, create automated processes that refine the information and only by exception some details that are not regularly.
    • Keep track of managing daily activity and balances to avoid reprocessing files.


A.2. Data for Total and partial cuts. As we noted above, it is normal for companies to have an information system that allows them to make the cuts cash, whether partial or final for this information bank reconciliation is done from various criteria, such as :

    • For branch or geographical location, date and amount. This criterion is when we assume that all data is correct and takes the final cut as correct box.
    • For branch and amount. Applies when the bank file date is incorrect.
    • Amount. When the key data of the branch is incorrect.
    • By reference.

Within the automatic bank conciliation process must be considered among some other things, the following:

    • What to do when for some reason or the branch or office event not capture the cut was made by cash or partially?.
    • What if in rounding decimals, not applicable and therefore the amounts are different?, We can apply a different amounts accept as good?.
    • What if we find more than a sum that matches or seek?, Accept the first or how to proceed?.
    • What to do if we make deposits grouped several days, etc.

Each of the above should be analyzed carefully to facilitate automatic bank reconciliation process and provide tools to personnel responsible for complying with their activities.

Additionally it is necessary answer the question: how many financial resources are in transit and how to control them?. This record over time may be important for the organization or company.

A.3. Results. Once the automatic reconciliation, the application should be allowed to generate a series of queries and reports, and interfaces that are reflected in the accounting records of the organization.

Among the results are:

    • To be conciliated? (can be up to standard type).
    • Not conciliated.?
    • Which amount is "in transit".?
    • The accounting interfaces.
    • Questions of historical movements.
    • The reclassifications perform prior authorization, among other results.

2.  Bank conciliation of expenses.

Another chapter is the electronic bank reconciliation paying accounts, ie those paid various debts that acquires a company, for our case to be taken into consideration several important points: 

    • The different types of payments.
    • The identification of the movements.
    • The types of currency in making payments.
    • Different financial institutions that are discharged from paying your bills, and
    • The various formats in which financial institutions receive statements.

In the upcoming release, we will mention the factors that we take into account to achieve the development of a information system that allow a high security and accuracy, and in no time, perform bank reconciliation.


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