Sage 50 Bank Reconciliation Discrepancy
It’s not difficult to understand why Sage 50 is so popular among the global business community. This top accounting software assists businesses in streamlining and accomplishing their accounting tasks more efficiently. Sage 50 is also well-known for its user-friendly interface. However, according to feedback from a subset of Sage users, some account-related features are a bit difficult to use. Some of the users have informed that they are not quite able to execute bank reconciliation in Sage 50 and are getting some discrepancies. In this blog, we are going to address this. Here, we will look at how to stay away from the Sage 50 bank reconciliation discrepancies.
Here we go!
What is a Bank Reconciliation Discrepancy? Why does it occur?
When you do bank reconciliation in Sage, you want to confirm that the transactions in Sage 50 Accounting match exactly with those mentioned in your bank statement. If all the entries match, the total of all the reconciled transactions, added to the starting balance will be the same as the closing balance. It will be confirmed if the difference is zero.
If the difference is not zero, we say that there exists a bank Reconciliation Discrepancy. This can happen due to one or more of the following reasons:
- The statement end balance is not correct
- The statement end date entered is incorrect
- A reconciliation done previously was saved with the wrong date
- The starting balance is not matching with the opening balance mentioned on your bank statement
- Some of the transactions had the wrong date
- A reconciliation done previously was saved with a differential amount
Read More-: Bank Feeds Common Error Codes
How can we avoid the Sage 50 Bank Reconciliation Discrepancy?
Please note that Sage Support does not provide any bank reconciliation analysis services. Also, it is not at all possible for Sage to assess what entries should exist ( or what not) in your company books. It has no method of knowing what should be posted to your bank statement. If you encounter a discrepancy and/or have an unresolved amount, you need to spend a fair bit of time investigating the source of the error. You can make the following checks to determine the usual sources of bank reconciliation discrepancies so that such errors can be avoided. Making a thorough check on the following points would help-
Whether you have entered the following correctly:
- Statement Start Date
- Statement End Date
- Statement Opening Balance
- Statement Ending Balance
- If all the transactions mentioned in your bank statement were recorded in Sage 50
- If all the transactions are dated correctly
- Whether your bank account linked to Sage 50 has the correct book balance
- If you have cleared all the transactions appearing in your bank statement
- If the gains (interest, exchange, errors) are added to the Income tax ( if applicable)
- If the bank fees were added in the Expense tab ( if applicable)
- Go to the Reconciliation window and check if the Outstanding amount matches with the total of all the unchecked items
- If not, you will need to reset the reconciliation
Also Read-: Troubleshoot Sage 50 Account Out of Balance Error
We hope the discussion above would help you stay away from and fix the Sage 50 Bank Reconciliation Discrepancieswith ease. If you are having difficulty while executing the steps shown above or, are still unable to resolve the issue, we recommend speaking with some experienced Sage professionals.
Accounting Professionals & Specialized Experts
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💠Frequently Asked Questions💠
How can I Clear a Bank Reconciliation in Sage 50?
Here are the steps to follow-
🔹 Double-click on the Chart of Accounts tab
🔹 Double-click on your bank account
🔹 Now, click on the Reconciliation & Deposits tab
🔹 Next, uncheck the box adjacent to Save Transactions for Account Reconciliation
🔹 Click on Save and close to close the account
🔹 Select OK in order to remove the entire reconciliation information
How can I Enable Bank Reconciliation in Sage 50?
Here are the steps to follow-
🔹 Open the Sage 50 application
🔹 Go to the Home window:
🔹 If you have enabled the Enhanced View, go to Company and double-click on the Chart of Accounts tab
🔹 In case you are in Classic View, double-click on Chart of Accounts
🔹 Now, make a double-click on your bank account
🔹 Click on the Reconciliation & Deposits tab
🔹 Next, checkmark the box adjacent to Save Transactions For Account Reconciliation
🔹 The Set Up button will be displayed at the bottom of the page
Click on it and set up the revenue accounts for the following:
🔹 Exchange gain
🔹 Interest income
You can also set up expense accounts for –
🔹 Interest Expense
🔹 Bank charges
🔹 NSF Fee, and
🔹 If needed, you can also rename the types of Interest and Expenses shown in the bank statement.
🔹 Click OK to save your settings
What is the Procedure to Set Up a Credit Line Bank Account in Sage 50
You can simply set up a credit line account just like any other bank account. You can then name it accordingly.
Please follow the steps below-
🔹 Navigate to Chart of Accounts
🔹 Create a new bank account
🔹 Make sure to keep the Account Class as Bank.
🔹 Mark the Account as a Credit line account.
🔹 You may also select to make regular payments from this account
If you want to transfer money between this account and other bank accounts, follow the steps below-
🔹 Click on the Banking tab
🔹 Click the tab named Transfer funds.
🔹 You can click on the Transfer from /Transfer to bank name as you require
🔹 Enter the amount as desired.
🔹 Click on Process.
Please Note: this asset account will most likely show a negative value
How to Make an Account Inactive in Sage 50?
Here are the steps to follow-
🔹 Go to the Maintain menu
🔹 Click on Chart of Accounts. The Maintain Chart of Accounts window will appear on your screen
🔹 Enter or choose the specific account ID to make inactive
🔹 To locate the list of existing accounts, click on the G/L Account ID field and type ? . Alternately, you may click on the Lookup button
🔹 Finally, click the Inactive check box adjacent to the selected account ID
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