Bank Reconciliation

The Bank Reconciliation function within DonorWorks 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. On the Accounting menu, select Ledger and under Ledger, select Bank Reconciliation.
  2. Click on the small Add button at the top of the Bank Reconciliation window 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 Save and then Close.
  4. Back on the Bank Reconciliation window, click the Hide items checkbox if you do not want to include items after the ending date on the bank reconciliation.

  5. 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.

    NOTE: 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.

  6. When the Bank Reconciliation session is in balance, click the File button.
  7. 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.

NOTE: 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.

NOTE: 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.]