Outstanding check information from the Check Write job and cleared checks from banks are brought together in the Check Reconciliation Module, usually on a monthly basis (although it can be run as often as you wish). This module also looks to the input of control data to determine how to process. An online screen is provided for entering cleared checks by hand if the bank does not provide a magnetic file.
Some of the controls include:
- from which banks have magnetic files been received?
- after how many days do un-cleared checks expire?
- which checks, if any, are to be purged from the Check Reconciliation Master file on this run?
- are recently issued checks (that probably have not cleared) to be summarized on this run? And if so,
- after what date are issued checks to be summarized?
The Vendor Master file provides company information for producing the Check Reconciliation Register, while the Table Master file validates bank account information for each company using the system.
During check reconciliation, cleared and canceled checks from the bank(s) are matched against the checks produced by the system to screen for:
- old, un-cleared items
- number gaps
- amount discrepancies between issued and cleared items
- voids that may have cleared
The Check Reconciliation Master file is updated in the process.
The Check Reconciliation Register displays all check clearing information, as well as data relating to the average time it takes checks to clear each bank or bank account. For companies that have banks do their reconciliation, this report provides a good cross-check on the bank.