Managing Balancing Entries and batches

Balancing entries are created every time a recon is done and there is an amount difference between the bank and the cashbook. They can be triggered as part of a manual recon, auto recon or journal rule.

  • Balancing entries are always created on the Cashbook side
  • They are assigned a batch type and transaction type by the process that generated them or manually
  • Batches and balancing entries created by an auto recon rule are closed automatically
  • Batches and balancing entries created by a journal rule can be closed automatically or left open for approval
  • Batches and balancing entries  created manually need to be approved
The recon was wrong and I've removed it. What does this mean for balancing entries?

  • This depends on when the incorrect recon was identified and what has happened since the recon.
  • Picked up immediately -  easy, simply break the match and delete the transaction from the open batch
  • Batch is closed/Accounting period is closed/already posted the balancing entry to your GL system - you'll need to do a reversal in this case. So remove the recon, and then create a new transaction (either manually or through the manual recon screen) and post it to the same GL account as the original balancing entry. You've now created a contra entry that will act as a reversal in your accounting package and adjust the Cashbook balance if required when the current accounting period is closed