You would only know what your bank charges are when you actually receive your bank statement from the bank. Any bank charges that have to be paid must be entered into your "Payments journal", and only interest received must be entered into your "Receipts journal".

It is always a good idea to use a reference number; such as your Bank Statement number; so as have a reference to the specific bank statement. 

You now need to go back to your Payments journal and enter your bank charges. Press the Esc key to exit the reconciliation. 

Before exiting the batch, make sure that you have clicked on the Apply Reconciled option on the Process button to save the “ticks” and reconcile the ticked items).


To enter bank charges and finalise the bank reconciliation:

  1. Click on the Batch entry icon. (You may also press the F2 key). The "Batch type" screen will be displayed.
  2. Select the Payments Jnl and click on the Open button. The "Payments journal" screen will be displayed.
  3. Enter the Alias (BatchName) as “ABC-Payments-BS5”.
  4. Enter the following transaction:
    1. Reference: BS5
    2. Date: 2020/03/31
    3. Account: Bank Charges
    4. Tax: Select No Tax for the purposes of this tutorial. 

VAT/GST/Sales Tax may be applicable to some charges on your bank statement, if you are registered as a VAT/GST/Sales Tax vendor.
    1. Amount: 45.00 DR

In practice, it is easier to enter any bank charges, debit orders, interest, etc. into your Payments or Receipts Journals before starting the reconciliation.
  1. Balance the batch. After entering the transactions and balancing the batch, the Payments Jnl is as follows:
  2. List the unposted transactions in the batch.
  3. Post the batch.
  4. Press the Esc key to exit the batch or journal. 
  5. Go back to your bank reconciliation and reconcile your bank charges. (To do this, tick the Unreconciled item and click the Process icon and select the Apply Reconciled option) on the The Difference in the bottom right-hand corner of the Reconcile Bank account screen should now reflect a nil balance.

Once you have completed your bank reconciliation, you must check that your Cashbook is, in fact, in balance.
  1. Click on the Report icon.

Any unreconciled payments will be subtracted from a positive bank balance and any unreconciled receipts will be added to a positive bank balance according to the bank statement, thus giving a reconciled balance.
  1. Click on the Close button of the Reconcile Bank account Options screen; or press the Esc key to exit (close) these screens.