Bank Reconciliation


After account transactions from your bank have imported into DEAR, you need to reconcile them to make sure transactions in your bank statement and transactions in DEAR match. 


Prerequisites:


  1. Reconcile Bank Transactions
  2. Creating transactions during bank reconciliation
  3. Reconcile a Transfer between bank accounts
  4. Bank Rules



Reconcile Bank Transactions

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The first step is to review what's imported and work out which way to reconcile it.

Your aim is to match transactions from your bank with transactions in DEAR.


To reconcile bank transactions:

  1. Navigate to Financials -> Bank Accounts
  2. Find the bank account you want to reconcile. Click Reconcile [number] items or I would like to -> Reconcile Account


  1. Review each account transaction imported from your bank. We refer to these as bank statement lines, and they're on the left of the Reconcile screen.


 


  1. For each line, check that the statement line is matched with the correct transaction. If DEAR has matched the statement line with the correct transaction in DEAR, click OK to accept the match and reconcile. 

 

  1. Sometimes DEAR finds more than one transaction (of the same amount and of a similar date) to match with the imported statement line. When this happens, DEAR matches the most likely transaction and provides a link to other transactions that are good alternatives.

  1. If you don't want to accept the match DEAR has made, you can use the Other Possible Match Found link to select another possible match. 
  2. Select the required match and click Reconcile.






Creating Bank Transactions during Reconciliation

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If DEAR can't find a match or doesn't create a suggestion during bank reconciliation, the statement line is left unmatched for you to create or find a transaction to match with it. 


Create a transaction only if there isn't a match or suggestion, and you haven't already entered the transaction in DEAR.



NOTE: Don't create a transaction in these situations

  • Transaction is already created 

If you've already entered the transaction in DEAR, find the transaction instead of creating one.

  • Bank statement line is for invoice 

If the bank statement line represents an invoice, and you haven't entered the invoice transaction, enter it outside bank reconciliation.

  • Bank statement line is for bill 

If the bank statement line represents a bill, and you haven't entered the bill transaction, enter it outside bank reconciliation.

  • Bank statement line is for expense claim 

If the bank statement line represents an expense claim, and you haven't entered the expense claim transaction, enter it outside bank reconciliation.

  • Bank statement line is a bank transfer 

If the bank statement line represents a transfer between accounts, and you haven't entered the transfer in DEAR, reconcile it using the Transfer tab.


If none of these situations are the case, you can create a transaction in DEAR to reconcile it. 



To create spend or receive money transactions to reconcile:

  1. Navigate to Financials -> Bank Accounts
  2. Find the bank account you want to reconcile. Click Reconcile [number] items or I would like to -> Reconcile Account
  3. Next to the bank statement line you want to reconcile, click the Create tab.
  4. Add or enter the following information
    • New/Existing customer or supplie –  Choose from dropdown or enter new using Add new customer/supplier. 
    • Choose Account – this is the account, from your chart of accounts, you want to code the transaction to. 
    • Why – (Optional) Enter a description. 
    • Tax Rule – Select the required tax rule related to the transaction.
  5. Click the green Create button to reconcile the transaction. 




Reconcile a Transfer between two Bank Accounts

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When you've imported a statement line showing the transfer but you haven't yet entered the transfer into DEAR, use the Transfer tab to reconcile a transfer from one of your bank accounts to another. 



Quick Transfer

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To create a quick Transfer and reconcile it:

  1. On the bank reconciliation screen, next to the bank statement line you want to reconcile, click the Transfer tab.

  2. Select the bank account you wish to make a transfer to/from.  
    • If the statement line shows the withdrawal, select the bank account you transferred the money to. 
    • If the statement line shows the deposit, select the bank account you transferred the money from.
    • Click OK
    • You don't need to create a transaction in the second bank account - this is done automatically. You will still need to reconcile it with its matching bank statement line.


Detailed Transfer

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More detailed transfers can be created with extra details, for example memos or attachments. 


To create a more detailed Transfer and reconcile it:

  1. Go to Financials -> New -> Transfer Money. 

  2. Enter your bank transfer details. 
  3. (Optional) Add attachments 
  4. Click Complete


You don't need to create a transaction in the second bank account - this is done automatically. But you'll need to reconcile it with its matching bank statement line.




Bank Rules

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Bank Rules can be used to automatically reconcile bank statement lines with transactions in DEAR. 


To create a Bank Rule:

  1. Navigate to Financials -> Bank Accounts. 
  2. Click I would like to > View Bank Rules. 

  3. In the View Bank Rules screen, click Create new rule and select from: 
    • Spend Money Rule 
    • Receive Money Rule


  1. Enter the conditions to build the rule. 
  2. Click Save.

  3. When an existing rule is found based on set conditions DEAR will suggest a match. Click Apply rule to automatically reconcile transaction.  

 


What's the difference between Any and All?

  • All - The rule is applied only when every condition is met. If one condition doesn't match, for example if a particular piece of information is missing from a statement line, then the rule will not run. This makes the rule more restrictive. 
  • Any - The rule is applied if only one of the conditions is met. The rule won't fail just because one or more conditions doesn't match. This makes the rule less restrictive. 


Allocating fixed value line items (optional) and the remainder


You can set up your bank rule to allocate one or more fixed-value portions of the transaction to an account in your Chart of Accounts.

After you've set up any fixed value allocations, you need to tell DEAR what to do with the balance of the transaction. You can allocate the remainder to one account in your Chart of Accounts or split it between two or more.


Enter:

  • The Amount of a fixed value allocation as either a positive or negative number with up to two decimal places 
  • The Percent of a remainder allocation as either a positive or negative number with up to two decimal places