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Interesting Scenario - Bank Reconciliation

Former Member
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Hi Experts !

My client has a scenario where payment is received 100% advance from the customers who deposite the same directly into bank account accross different geographical locations.

Clients a/c dept. checks for receipt of payment through netbanking and makes an incoming payment 'On Account' against that customer and enters transaction id of the payment as seen in online bank statement.

The invoice is generated after payment recipt and the goods are despatched to the customer.

The customers's requirement is ;-

1) To reconcile incoming payments with external bank statement by matching the transaction id as entered at the time of incoming payment and as present in the bank statement.

It sometimes happens that either delibrately or by mistake the user enters wrong transaction id at incoming payment against the customer and the goods are dispatched.However that transcation id does not match when it is reconciled with bank statement.

How do I reconincile external bank statement with incoming payments ? The customer is using 2007B,PL06.

Your inputs are much appreciated.

Thanks,

Asap

Accepted Solutions (0)

Answers (1)

Answers (1)

former_member583013
Active Contributor
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Human mistakes are suppose to be an exception and providing a solution to an exception should be considered more like an alternate

Matching the amounts or Customer Code or Date would be the other option.

If the transaction id is being entered in any of the fields which carries to the Journal Entry then the same can be corrected by going to the JE and will appear in the Recon window

Suda

Former Member
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Hi Suda,

Thanks for the reply !

More than the human error the question is to enable the system to prevent delibrate incorrect entries which has happened in the past.

Changing the transcation id field in the JE will work in case of entries with wrong id.

Could you please enlighten me on the possibility of matching external bank statement with the incoming payments?

Regards,

Asap

former_member583013
Active Contributor
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It will be practically not possible to prevent human errors..there is not way for the system to know whether the TRansaction Id entered by the user is correct or a deliberate mistake?

Hope fully you understand my point

Suda

Former Member
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May be we cannot prevent it but nevertheless we can enable the system to track incorrect entries so that the same can be analysed.