How to Reset the Bank Reconciliation in Sage 50
In Sage 50, bank reconciliation is important to make sure that your actual bank balance and your Sage 50 bank balance match up. But sometimes, users may require to reset the bank reconciliation because of several reasons that are listed in the below paragraph. Learn the complete process for how to reset the bank reconciliation is Sage 50 in this particular blog post.
Use caution when reset the bank reconciliation in Sage 50. Always take a backup of your files/data before proceeding with above solutions. If necessary, seek the assistance of a qualified Sage business partner or Sage 50 customer support analyst through Sage live chat option 24×7.
Why Should I Reset the Bank Reconciliation in Sage 50?
There can be multiple causes behind the reset the bank reconciliation in Sage. few of them are like:
- The prior month’s account reconciliation has already been posted, and a difference amount has now been determined.
- Even if the ending balance equals the open balance and nothing is cleared, there is an amount that has not been resolved.
- Sage 50 Canadian Edition is reading the wrong figures because the bank reconciliation database contains some inaccurate data.
- Sage 50 does not have the ability to reverse bank reconciliations for a given month.
Steps for Reset Bank Reconciliation in Sage
Step 1: Create a backup file:
Make a backup of your data because all previously completed bank reconciliation information will be permanently lost if you don’t.
To do a backup open your data file:
- Make sure you’re logged into the company that you want to backup
- If you’re using Sage 50 Premium or Quantum, make sure you’re in single user mode in administration
- Go to the File >>> Backup
- You can also use the toolbar at the top of the Home screen to select the Backup icon (which looks like a file cabinet)
- Enter the file name in the Sage 50 Backup window
- It could be a good idea to incorporate the date in this name, for example, UC141222
- Choose the folder where you wish to save your backup
- Please do not place the file location in the.SAJ folder, as this is where the software backs up the files.
- The most recent backup file path is remembered and used as the default for subsequent backups.
- If you’re not sure if you want to overwrite an existing backup, don’t do it.
- Finally, click on the “Ok” in order to begin the backup.
Step 2: Get a list of Outstanding Transactions:
- Initially, select the Reports >>> Banking >>> Account Reconciliation Report
- Next, use the “Report type: Summary report with Outstanding transaction detail
- Choose the proper bank account and then choose an appropriate Start Date and Finish Date
- So as to display the latest successfully reconciled period
- Select the option “Report By Statement End Date”
- In order to view the report, click “Ok”
- Finally, save this report by selecting “Print” or “Open in Excel”.
Step 3: Clear the bank reconciliation:
- First, double-click on the Chart of Accounts (if it’s in Enhanced View, go to the Chart of Accounts; Company tab from the left pane)
- Next, make a double-click on the bank account
- Choose the tab “Reconciliation & Deposits”
- Uncheck the box beside the “Save Transactions for Account Reconciliation”
- Close the account just by clicking on the “Save and Close”
- At last, hit “Ok” in order to remove all reconciliation information.
Step 4: Re-enable the bank account for the bank reconciliation:
- The very first, double-click on the bank account
- Next, select the tab “Reconciliation & Deposits”
- Put a checkbox in the box which is next to “Save Transactions for Account Reconciliation”
- Click on the “Set Up” button that pops up on the bottom of the page
- After setup revenue accounts for Interest income, Error-Gain, Exchange gain, and Adjustments
- You can also create expense accounts for bank fees, non-sufficient funds fees, and interest rates
- Close an account by clicking on the “Save & Close” tab
- At last, close the accounts window with the X in the corner.
Also read: Credit card Reconciliation in Sage 50
Step 5: Set up the bank reconciliation once again:
- First, open the “Reconciliation & Deposits journal and then select the proper bank account
- Next, re-enter the Reconciliation Date, Statement Start Date, Statement End Date, Statement Opening Balance, and Statement End Balance for the month you were attempting to reconcile
- Now, click on the “Add Prior Outstanding” to state the opening outstanding: manually bring back the transactions that were outstanding as of your statement start date, by means of the report you exported/printed in the step 2 (Only transactions dated between the Statement Start Date and the Statement End Date will be automatically imported by Sage 50)
- After that, set the date within “Show Resolved Trans” and then “On or After” as far as the oldest before outstanding transaction
- From the list of Resolved Transactions, select the “Outstanding Transactions”
- To move them down to the “Outstanding Transactions” list, you have to click “Add”
- If a transaction which was outstanding as of the Statement Start Date doesn’t pops up in the “Resolved Transactions” list even after modifying the search date
- You can click on the “Insert Outstanding” tab and then add it manually
- Once you have added all the outstanding transactions then click “Ok” (Leave the Outstanding Transactions list empty and click OK if you have no outstanding transactions to bring in)
- Finally, try once again to reconcile your bank account.
Also Read: How to modify the start date of the statement of bank reconciliation
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Frequently Asked Questions
Why do I need to undo bank reconciliation or unreconcile a transaction in Sage 50?
There are many situations where you are required to reconcile one or more bank transactions in error. There are a few options for dealing with this if it happens to you:
➤ On each transaction, clear the bank reconciliation flag.
➤ Reverse the bank reconciliation to the point when it was started.
➤ Restore a backup
How do I reverse bank reconciliation?
➤ Go to the Bank accounts and then choose the required bank account
➤ Click on the “Reconcile” >>> Reverse a reconciliation
➤ Choose the relevant reconciliation and then click on the “Reverse reconciliation”
➤ Click “Yes” and then complete the backup process
➤ Finally, hit “Yes” in order to confirm bank reconciliation reversal.
What happens when you reverse reconciliation in Sage?
The associated transactions are listed as unreconciled and the bank reconciliation date is erased/removed when you reverse bank reconciliation. When you reverse bank reconciliation, you also reverse any reconciliation.
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