Sage 50 Bank Reconciliation Discrepancy

To confirm the accuracy of the account, every organization and user needs to use the Bank reconciliation feature within the accounting software. The process has been designed to reduce the difference between the statement and bank transactions. Once the transaction matches, the differences between them should be zero. If the difference is not zero, then it is nothing but this process is also known as a discrepancy. At this point, in case it is not found to be zero then you should look for fixation methods of Sage 50 bank reconciliation discrepancy. This entire troubleshooting solution is explained in this blog. Let us take a look at the various Sage 50 bank Reconciliation discrepancy problems and their significant causes.

Here we go!

What is Meant by Sage 50 Bank Reconciliation Discrepancy?

Sage 50 Bank Reconciliation Discrepancy is essentially a program that has been developed to help accountants find and fix several bank reconciliation errors in Sage that usually occur during the process of tax preparation. You need to know that the Bank reconciliation statements are financial documents that summarize your bank account activity as well as the internally recorded activities. These demonstrate that both the records are consistent with each other, and are used to reconcile your bank accounts.

After the bank account balance within the books of account has completely matched the amount reported by the financial institution in the most recent bank statement, this process is known as bank reconciliation according to accounting standards. In case of the existence of a difference between both data should be detected as soon as possible, and, if required, it needs to be corrected as well.

Read More-: Bank Feeds Common Error Codes

State some of the most important aspects to keep in mind about the Sage 50 Bank Reconciliation Discrepancy.

• Bank Reconciliation is all about determining whether the account records and bank details agree.
• After the discrepancy and/or an unresolved amount have been identified, the required time must be spent to determine their origin.
• There are no bank reconciliation analysis services or fast fixes available through Sage Consultant.
• Sage is not able to decide which entries need to be present within your company’s books or which transactions need to be reported in your bank statement.

What Are the main Reasons that Lead to Sage 50 Bank Reconciliation Discrepancy?

The discrepancy can occur due to various reconciliation adjustments like journal entries, and added, modified, or deleted reconciled transactions. The main reasons are that past reconciled transactions have been added, deleted, or altered or reconciliation arrangement. Hence you have faced issues while Reconciling the Sage 50 Bank Statement.

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

Final Words

We hope the discussion above would help you stay away from and fix the Sage 50 Bank Reconciliation Discrepancies with 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.

Frequently Asked Questions(FAQs)