checkbook reconciliation in client bookkeeping...

CLIENT BOOKKEEPING SOLUTION CHECKWRITER™

Checkbook Reconciliation version 2007.x.x

TL 18210 (05/21/09) Copyright Information Text copyright 1997-2009 by Thomson Reuters/Tax & Accounting. All rights reserved. Video display images copyright 1997-2009 by Thomson Reuters/Tax & Accounting. All rights reserved. Thomson Reuters hereby grants licensees of CS Professional Suite® software the right to reprint this document solely for their internal use. Trademark Information The trademarks used herein are trademarks and registered trademarks used under license. All other brand and product names mentioned in this document are trademarks or registered trademarks of their respective holders.

Checkbook Reconciliation in Client Bookkeeping Solution iii

Contents Introduction............................................................................................................... 1

CBS checkbook reconciliation features ............................................................................... 1

Reconcile Transactions window .......................................................................................... 1 Checkbook Transactions tab .......................................................................................... 2 Summary tab .................................................................................................................. 4 Statement Transactions tab ............................................................................................ 5 Unmatched Statement Transactions tab ........................................................................ 6

Manual Checkbook Reconciliation ......................................................................... 7 Reconciling your CBS checkbook against a bank statement .............................................. 7

Adding transactions to a CBS checkbook during checkbook reconciliation ........................ 8

Automatic Checkbook Reconciliation .................................................................. 11 Setting up a CBS checkbook for online banking (optional) ............................................... 11

Validating a CBS checkbook ............................................................................................. 13

Using the Quick Clear wizard ............................................................................................ 13 Resolving unmatched transactions ............................................................................... 15 Entering transaction data from a paper statement ........................................................ 16

Retrieving transactions via direct connection .................................................................... 18

Resolving duplicate transactions ....................................................................................... 20

Downloading a file ............................................................................................................. 21

Transaction Details ................................................................................................ 23 Entering detailed transaction information .......................................................................... 23

Viewing detailed transaction information ........................................................................... 24

Other Checkbook Reconciliation Dialogs ............................................................ 27 Reconciliation Detail Options ............................................................................................ 27

Filter Reconciliation ........................................................................................................... 28

Contents

iv Checkbook Reconciliation in Client Bookkeeping Solution

Clear Check Range ........................................................................................................... 29

Checkbook Reconciliation Report ........................................................................ 31 Printing the Checkbook Reconciliation report .................................................................... 31

Out-of-balance reconciliation ............................................................................................. 32

Checkbook Reconciliation in Client Bookkeeping Solution 1

Introduction If your accountant has enabled the checkbook reconciliation feature for your Client Bookkeeping Solution® (CBS) software, you can reconcile your checkbook(s) in CBS — either manually, using a bank statement, or automatically, using the CBS online banking feature. CBS allows you to take advantage of many of the online banking services offered by your financial institution. Please check with your financial institution for information on the online banking services available to you.

CBS checkbook reconciliation features Using the checkbook reconciliation features, you can use your CBS software to:

Automatically display all uncleared checks, deposits, and other bank items entered in CBS.

Mark checks, deposits, and other bank items to clear, individually or in groups.

Quickly open the Checkbook window to add or edit a check, deposit, or other bank item to include as part of the current reconciliation.

Continuously update the cleared-items balance as you mark items that have cleared through the bank.

Save partially completed reconciliation information to finish at a later time. (CBS uses a C to denote tentatively cleared items — that is, items marked as cleared for a reconciliation that has not yet been finalized — in the Register listview of the Checkbook data-entry window.)

Create an automatic adjustment if you are unable to reconcile your checkbook balance with the ending balance shown on the statement.

Reconcile Transactions window In CBS, most of the checkbook reconciliation tasks are done in the Reconcile Transactions window. The Reconcile Transactions window consists of four tabbed pages — Checkbook Transactions, Summary, Statement Transactions, and Unmatched Statement Transactions. The Statement Transactions dialog is

Introduction

2 Checkbook Reconciliation in Client Bookkeeping Solution

available only when you have entered or downloaded transactions from your financial institution. The Unmatched Statement Transactions tab is available only after you have retrieved transactions for this reconciliation.

To open the Reconcile Transactions window, choose Checkbook / Reconcile and then choose the CBS checkbook you want to reconcile.

Checkbook Transactions tab The Checkbook Transactions tab lists the transactions entered in CBS for the selected account. You can mark any transaction as cleared in this list. As you clear transactions, the program calculates the cleared amounts and the unreconciled differences.

CBS sorts the transactions listed in the Checkbook transactions list by the Check # and then by the Date. You can change the sort order by clicking the column heading associated with the column by which you would like to sort the list.

Introduction


View group box Use the options in the View group box to choose the format in which to view the transactions in the Checkbook transactions list.

If you choose the Totals option, the program displays the description entered in the Description or Payee fields in the Checkbook window. Each transaction is displayed on a single line.

Note: If your accountant has enabled the direct deposit feature for your CBS software, the program lists the paper portion (if any) of a check separately from the direct deposit portion.

If you choose the Details option, the program displays any additional detail information entered in the Details dialogs associated with the transaction. You can view these details in any of the windows or dialogs listed below. Each component of each transaction is displayed on a separate line.

Details tab of the Checkbook data-entry window (for Check, Deposit, Other Payment, Other Deposit types)

Check listing of direct deposit amounts

For additional information on transaction details, refer to the Transaction Details section starting on page 23 of this document.

Statement reconciliation grid The first time you reconcile a checkbook, you can enter the statement ending date in the Statement reconciliation grid at the bottom of the tabbed page. CBS uses this date to calculate the statement beginning date by using the first day of that month.

Go to item button You can highlight a transaction and click the Go to item button to have CBS open that transaction record in the Checkbook data-entry window. You can then view and/or edit the transaction detail.

When you click the Go to item button for an accounts receivable deposit transaction, CBS opens that deposit record in the Checkbook data-entry window. Click the Details tab, and then click the jump to record button to view the deposit record in the Deposits window.

Introduction


Summary tab The Summary tab displays a summary of the current checkbook reconciliation. On this tabbed page, you can enter the opening and ending balances, the opening and ending dates, and the total amount in checks and deposits from your statement. As you clear transactions, CBS dynamically calculates and displays various checkbook amounts and the unreconciled difference.

If this is a new checking account, CBS sets the statement ending date to the last day of the month before the first export date and the statement beginning date to one month before the statement ending date. The first time you reconcile a checkbook, you can enter the statement ending date in the Statement reconciliation grid. CBS uses this date for the statement beginning date by using the first day of that month or by incrementing it by one month.

Note: CBS displays the amount in the Calculated Amount field in the Ending Balance group box only after bank transactions are available. This amount represents the opening balance +/- any cleared bank transaction amounts.

Introduction


Statement Transactions tab This tabbed page is available only if you have entered or downloaded transactions from your financial institution. It lists the transactions from your bank statement. CBS obtains these transactions from one of the following sources:

Direct connection to your financial institution’s computers.

Imported data file in any of the following formats that you manually download from your financial institution: Open Financial Exchange (OFX), Quicken Open Financial Exchange (QFX), Microsoft Money, Quicken version 2001 and higher, or QuickBooks version 2001 and higher.

Transactions manually entered in the Enter Statement Transactions dialog (during a Quick Clear procedure). The source of these transactions is usually a hardcopy statement from your financial institution.

You can click the Detail button to open the Statement Transaction Detail dialog, where you can view the CBS checkbook register transaction(s) to which the highlighted transaction is matched. You can click the Print button to print the transactions listed on this tabbed page.

Introduction


Unmatched Statement Transactions tab This tabbed page is available only if there are unmatched transactions. It lists transactions from your statement that have not yet been cleared.

You can click the Delete button to delete the highlighted transactions from this tabbed page. The program does not delete the transaction from the CBS checkbook.

You can click the Print button to print the transactions listed on this tabbed page.


Manual Checkbook Reconciliation You can use CBS to reconcile your CBS checkbook balance against a bank statement.

Reconciling your CBS checkbook against a bank statement 1. Choose Checkbook / Reconcile and then choose the checkbook you want to

reconcile.

2. If this is the first time you have reconciled this checkbook in CBS, enter the Statement opening balance, Statement ending balance, and Statement end date from your bank statement on the Checkbook Transactions tab of the Reconcile Transactions window. For each subsequent reconciliation, the program uses the ending balance of the most recently finalized reconciliation as the opening balance.

3. In the Reconcile Transactions window, double-click each item that appears on the statement to mark it as cleared. To unmark an item, double-click it again. (To clear several items at once, press and hold the CTRL key while clicking items. To clear a range of checks, choose Edit / Clear Check Range and specify the check range(s) you want to clear.)

You can also use the arrow keys to highlight an item and then press C or the spacebar on your keyboard to mark it as cleared, or press U to mark it as not yet cleared.

4. As you mark each cleared item, verify that its amount matches the amount shown on the bank statement.

5. To add any bank service charges or interest income, or if you find an item on your bank statement that you forgot to record in CBS, click the Add button to open the Add Transactions to Checkbook window.

6. If you want to correct an item listed in the Reconcile Transactions window, highlight the item and click the Go to item button. (In most cases you will need to void or delete the transaction and then re-enter the item.)

7. Click the Save button to discontinue this reconciliation and return to it at a later time. CBS will save all of the information you have entered to this point. You can print a report of your reconciliation work in progress by choosing File /

Manual Checkbook Reconciliation


Queue Reports and clicking the Options button associated with the Checkbook Reconciliation report on the CheckWriter tab. In the Checkbook Reconciliation options dialog, choose the Current work in progress report type.

8. After you have marked all checkbook items that appear on the current statement and the cleared balance equals the statement ending balance, the reconciliation is complete. Click the Finalize button.

9. Print one or more copies of the Checkbook Reconciliation report to retain for your files.

Adding transactions to a CBS checkbook during checkbook reconciliation

Use the Add Transactions to Checkbook window to add the following types of transactions to the CBS checkbook register:

Historical In Transit, Other Item. You must enter the amount with the appropriate sign (positive or negative). CBS will increase the checkbook balance by all positive amounts and decrease the balance by all negative amounts.

CBS does not export any Historical, In Transit transactions, nor does it add Historical In Transit transactions to any CBS checkbook register at any time. These transactions are used for checkbook reconciliation only and are typically used to correct or enter outstanding transactions from a previous reconciliation that was not finalized in CBS.

Check, Employee. You must click the icon for each PayCheck check to enter additional information for the paycheck. You do not need to click the icon to create a noncalculating paycheck. For a noncalculating paycheck, the program will distribute the full amount to the first distribution line.

The checkbook setup determines which employees will be available in the Description drop-down list. If the checkbook is set up for CBS PayCheck,™ only the PayCheck employees will be listed. If the checkbook is not set up for CBS PayCheck, only the NCP employees will be listed.

Other Item, Pmt for Vendor. If you are licensed for the optional CBS Accounts Payable module, CBS will create the transaction as a cash payment in CBS Accounts Payable.

Check, Vendor. If you are licensed for the optional CBS Accounts Payable module, CBS will create the transaction as a prepayment in CBS Accounts Payable.

All interest income and bank service fees should be entered in this window. To add an interest income transaction, select the Other item, Deposit type for the transaction. To add a bank service fee transaction, select the Other item, Payments type for the transaction.



Follow these steps to add transactions to the selected checkbook.

1. In the Reconcile Transactions window, click the Add button.

2. In the Add Transactions to Checkbook window, select the type of transaction to add from the drop-down list in the Type column.

3. Select or enter the applicable description from the Description drop-down list. The descriptions available in the drop-down list depend on the transaction type; all memorized transactions of the type selected are available.

4. Enter the transaction date in the Date column.

5. If this is a check, enter the check number in the Check # - Bank Type column.

6. Enter the transaction amount in the Amount column.

7. If this is a recurring transaction, select the type of recurring transaction (Recurring or Recurring with Amount). A recurring transaction will be added the next time you start a new reconciliation after a checkbook reconciliation has been finalized for this checkbook. The program does not carry forward this amount. To save the amount, select Recurring with Amount.

8. Click the icon to save the record (if CBS has enough information to create the transaction) or click the icon to open the transaction record in the appropriate data-entry window so that you can enter any additional information and save the record.

Notes

The icon will be available for any transaction (except Historical In Transit transactions or AP vendor transactions) that can be modified in the Checkbook data-entry window. CBS does not allow you to enter or edit distributions or details for unapplied AP payments.

If you add transactions from your bank statement that are specific to Form 1099 vendors, you must select Check, Vendor or Other Item, Pmt for Vendor AP from the Type drop-down list. The icon is not available for



vendor checks (if licensed for CBS Accounts Payable). If you select Other Item, Pmt for Vendor AP and then click the icon, CBS opens the Checkbook window and creates an Other Payment type transaction. If you click the button for the Other Item transaction, CBS will create an accounts payable transaction.

If you add transactions that are specific to employees, you must select Check, Employee from the Type drop-down list. By default, CBS uses the net-to-gross method to calculate paycheck amounts, based on the check amount you enter for CBS PayCheck transactions. When you click the button, CBS opens the Net to Gross dialog. Click Cancel to close the dialog, and then enter the paycheck amount in the PayChecks window.

The Memorize New Transactions and Update Memorized Transactions options (on the General tab of the Utilities / Options dialog) do not apply to this window. CBS will not memorize any transactions added in this window. Existing memorized transactions are available for selection in this dialog, but CBS will not update the original memorized transaction with any changes you make in this window. If, however, you click the icon and save the transaction in the applicable data-entry window, CBS will memorize or update the transaction as usual. If the default PayCheck frequency is different from the frequency for the selected employee, CBS prompts you to change the frequency.

9. If you have added multiple transactions without saving them individually (by clicking the Create record button), click the Create All button to add all transactions (except Historical In Transit transactions, which CBS adds to the Checkbook Transactions tab only) to the CBS checkbook register.

If any transactions remain in this window after you click the Create All button, you must enter additional information about each of the remaining transactions. Click the icon associated with each remaining transaction to open the record in the appropriate data-entry window, and then enter the additional information and save the transaction record.

Note: If you add an historical item in error, highlight that item in the Checkbook Transactions list and choose Edit / Delete ‘In Transit’ Transaction.

10. Click the Done button to close the Add Transactions to Checkbook window and return to the Reconcile Transactions window.


Automatic Checkbook Reconciliation If your financial institution allows you to download transaction data to a file or to access your bank transactions electronically through online banking, CBS can read these transactions and use them to reconcile your account. If you do not have access to your account transactions electronically, you can manually enter the transactions from your statement, as described in Chapter 2 of this document.

Setting up a CBS checkbook for online banking (optional) Before you can retrieve data from your financial institution to use for checkbook reconciliation, you must first set up your CBS checkbook to access this information. If you will be retrieving transactions from a downloaded file, you do not need to do these setup steps.

1. Choose Checkbook / Setup.

2. Enter the name of the checkbook you want to set up or select an existing checkbook from the drop-down list in the Checkbook description field.

3. Enter the general checkbook information on the General tab. See the CBS help topics for detailed information on the fields on the General tab.

4. Click the Financial Institution Information tab.

Automatic Checkbook Reconciliation


5. On the Financial Institution Information tab, select the financial institution with

which you established this account. The drop-down list includes all financial institutions assigned to other CBS checkbooks. The list will be empty the first time you enter data on this tab for this checkbook. If the drop-down list is empty, click the Update list button and then select the appropriate financial institution from the list of financial institutions that support online banking for CBS.

6. Enter your Bank user ID assigned to you by the financial institution. If you do not know your user ID, contact your financial institution to request an ID that will allow you to access your account(s) online.

Note: The user ID and PIN you use for online banking may or may not be the same as that used to access your account on the financial institution’s web site. If you have difficulty accessing your account due to issues with your login credentials, please contact your financial institution for assistance.

7. Enter the appropriate account ID in the CBS checkbook account ID field. By default, CBS uses the account number you entered on the General tab of the Checkbook Setup window. Your bank may append additional digits to the beginning or end of this account number to identify the type of account. Enter the assigned number in this field, but do not change the account number on the General tab.

8. (Optional) Mark the Prompt when duplicate transactions are retrieved checkbox to have the program to prompt you when it encounters any transactions with the same check number and amount as a previously retrieved transaction. You will have the option to skip the transaction, skip all duplicate transactions, add the transaction to the CBS checkbook register, add all



duplicate transactions to the CBS checkbook register, or quit (stop the data transfer).

9. You can validate the checkbook at this time or wait until you are ready to view the transaction information from your financial institution. When you validate a checkbook, CBS sends your user ID and personal identification number (PIN) to the financial institution to verify that it can access your account information. See the “Validating a CBS checkbook” section below for details.

Note: Your financial institution may use different formats for the routing numbers printed on a MICR-encoded check and for the online banking account access. Therefore, CBS allows you to enter different routing numbers on the General tab and the Financial Institution tab.

Validating a CBS checkbook CBS uses information you entered on the Financial Institution Information tab of the Checkbook / Setup window to obtain your account information from your financial institution. When you attempt to access your account information, CBS validates this information by sending your user ID and personal identification number (PIN) to the financial institution.

1. On the Financial Institution information tab of the Checkbook Setup window, click the Validate button.

2. In the Enter FI Information dialog, verify the account information and enter your personal identification number (PIN). Click the Submit button.

Notes

CBS does not store your PIN, so you will need to enter it every time you access your financial institution data from CBS.

When retrieving a file, if the file includes transactions for multiple accounts, CBS will prompt you to select the correct account.

If you enter an incorrect account ID in the New checkbook’s account ID field or leave it blank, the program will display a list of your accounts (if your financial institution supports this feature). Select the account you want to view and click OK to return to the Enter FI Information dialog.

3. When CBS successfully connects to your financial institution, it will display a message prompt. Click OK.

Using the Quick Clear wizard A Quick Clear wizard is available from the Reconcile Transactions window in CBS. Through the Quick Clear wizard, CBS automatically matches the bank transactions with the transactions in the CBS checkbook register based on check number and amount.



1. Choose Checkbook / Reconcile and then choose the checkbook you want to reconcile.

2. In the Reconcile Transactions window, click the Begin button in the Quick Clear group box.

3. In the Select Banking Activity dialog, choose the source of your financial institution transactions.

Click the Online button to access your transactions directly from your financial institution’s computer. If CBS cannot access your financial institution’s servers, it will open the financial institution’s website in your web browser. You can then log in and retrieve your transaction information.

Click the Retrieve from file button to have CBS read the transaction data from a file you have already downloaded from your financial institution.

Click the Paper Statement button to open the Enter Statement Transactions dialog, where you can manually enter transactions from a bank statement.

4. Once the statement transaction information is available, CBS is ready to reconcile the statement transactions against the CBS checkbook transactions. Click the Next button to proceed with the reconciliation.

If the CBS checkbook register includes any matching uncleared entries dated on or before the statement end date, the program will mark them as cleared. If the program cannot find a matching transaction, it will leave the item in the grid.

5. If there are any transactions that cannot be matched, CBS opens the Resolve Unmatched Transactions dialog. In this dialog, all uncleared checkbook transactions are listed in the top pane and all uncleared statement transactions are listed in the lower pane. See “Entering transaction data from a paper statement” on page 16 for more details.

6. Click the Next button to open the Add Transactions to Checkbook window (if necessary). CBS displays all transactions that you marked to add. If you save a match for which the amounts in the checkbook transaction and the bank transaction are different, CBS adds an adjustment transaction to the Add Transactions to Checkbook window.

For example, if you recorded a check record in CBS with an amount of $10, but the financial institution record shows the check amount as $100, CBS will create a transaction with the amount of $90.

To add the adjustment to your checkbook, click the icon to create the transaction. If the adjustment is a bank error, you can delete the adjustment, unclear the related checkbook transaction, and add a zero-amount transaction to note the expected bank adjustment to the next period.

7. Click the Done button to continue.

8. If all transactions have been matched, click the Finalize button in the Reconcile Transactions window to finalize the reconciliation.

Important! CBS will not allow you to finalize the reconciliation if there are any transactions in the Add Transactions to Checkbook window that are partially cleared. You must either add these transactions or delete them from the Add Transactions to Checkbook window.



If you exit the Quick Clear wizard before finalizing the checkbook reconciliation, you can return to it by clicking the Resume button. If you are reconciling to transactions that have been downloaded or to an electronic file, you can choose to refresh your data, but this is not required. CBS does not clear the data in the Quick Clear wizard until you finalize the reconciliation.

Resolving unmatched transactions Use the Resolve Unmatched Transactions dialog to manually match transactions from your statement to transactions in the CBS checkbook register.

This dialog opens automatically during the Quick Clear process when you move to a new dialog in the Quick Clear wizard and the program encounters one or more statement transactions that could not be matched to a transaction in the checkbook register.

CBS displays all checks, direct deposit details, and deposits as positive amounts. (CBS uses the transaction type to determine the sign.) All other transactions are shown with their appropriate sign.



View by group box You can choose the format in which you would like to view the transactions in the Select Checkbook Transactions to Clear list.

If you choose the Totals option, the program displays the description entered in the Payee or Description field in the Checkbook or Deposits windows. Each transaction is displayed on a single line. If your accountant has enabled the direct deposit feature for your CBS software, the program lists the paper portion (if any) of a check separately from the direct deposit portion.

If you choose the Details option, the program displays any additional detail information entered in the Details dialogs associated with the transaction. Each component of each transaction is displayed on a separate line.

If you choose the Details option, you can click the Options button to open the View Detail Options dialog, where you can choose the detail you want to view (check detail, other item detail, deposit detail).

Add to checkbook button You can click the Add to Checkbook button to have the program add the selected bank statement transaction to the Add Transactions to Checkbook dialog.

Ignore bank TX button You can click the Ignore Bank TX button to have the program remove the transaction highlighted in the Bank Transactions list from this dialog and include it on the Unmatched Statement Transactions tab of the Reconcile Transactions window. CBS considers this a Bank error.

Suggestion buttons You can click the New Suggestion button to have CBS try to match one or more transactions in the Select Checkbook Transactions to Clear list with the currently highlighted transaction in the Bank Transactions list. When the program suggests a match, it first tries to match all transactions that use the same check number as the bank transaction, regardless of the total amount of the checkbook transaction(s). For all subsequent suggestions, it suggests matches when the checkbook transaction amount is exactly the same as the bank transaction amount. You must save all matches in order for them to appear on the Checkbook Transactions tab as cleared. The program marks the checkbox in the Match column associated with the transaction(s) in the Select Checkbook Transactions to Clear list that most closely match the selected bank transaction.

When CBS suggests multiple CBS checkbook transactions to match a bank transaction, the sum of the CBS transaction amounts must be exactly equal to the bank transaction amount. If CBS finds more than one match for any bank transaction, you can click the Previous Suggestion button to view the previous suggested match or you can click the Next Suggestion button to view the next suggested match.

Entering transaction data from a paper statement Use the Statement Transactions dialog to manually enter transactions from a hardcopy statement from your financial institution. These transactions will appear on the Statement Transactions tab of the Reconcile Transactions window and will be automatically reconciled with the Quick Clear wizard.



To open the Statement Transactions dialog, click the Begin button in the Quick Clear group box of the Reconcile Transactions window. In the Select Statement Activity dialog, click the Paper Statement button.

The transactions you enter in this dialog will not be added to the checkbook register. These transactions are used to reconcile against the register. To add transactions to the register, use the Add Transactions to Checkbook window.

You can mark one or more of the checkboxes at the bottom of the Enter Statement Transactions dialog to speed data entry in this dialog.

Fields to skip. Choose the column(s) to skip while entering transactions in this dialog. Note that the Quick Clear wizard uses only the check number and amount to match transactions.

Default amount to checkbook value. CBS will enter the amounts from the CBS checkbook register when the type, date, and check number match the statement transactions or if no amount is provided.

Increment check numbers. CBS will automatically enter the next available check number in the Check # column.

Default new row. CBS will automatically enter the same text from the current row in the next row when you press TAB.



1. Choose Checkbook / Reconcile and then choose the checkbook you want to reconcile.

2. In the Reconcile Transactions window, click the Begin button in the Quick Clear group box.

3. In the Select Banking Activity dialog, click the Paper Statement button.

4. In the Enter Statement Transactions dialog, mark the checkboxes associated with the fields you want to skip (if any) during data entry.

5. To have the program enter the amounts from the checkbook register when the type, date, and check number match those for the transactions you enter from the statement or if no amount is provided, mark the Default amount to checkbook register value checkbox.

6. To have CBS automatically enter the next available check number in the Check # column, mark the Increment check numbers checkbox.

7. To have CBS automatically repeat the same text from the current row into the next row when you press TAB, mark the Default new row checkbox.

8. Enter the transactions from your bank statement in the Statement transactions list.

9. Click the Next button. CBS adds these transactions to the Bank Transactions list in the Resolve Unmatched Transactions dialog.

Retrieving transactions via direct connection 1. Open the Select Statement Activity dialog using either of the following methods:

Choose Checkbook / Reconcile and then choose the desired CBS checkbook. In the Reconcile Transactions window, click the Begin button in the Quick Clear group box.



Choose Checkbook / View Bank Transactions and then choose the desired CBS checkbook. Notice that the Paper Statement button is not available when you open the Select Statement Activity dialog using this command.

2. In the Select Statement Activity dialog, enter a date range for the transactions you want to retrieve, or select All.

3. Click the Online button.



Note: If CBS cannot connect directly to your bank’s servers or if you did not enter any bank information for this checkbook in the Checkbook setup window, the program will connect to your financial institution’s website in your default browser. You can then access your account information and download your transaction information.

4. In the Enter FI Information dialog, enter your PIN and then click the Submit button to initiate the Quick Clear Wizard. If you prefer, you can click the Finish button and clear your transactions manually.

5. Click the Statement tab to view the transactions from your financial institution. Note that this tabbed page is not available if you opened this dialog with the Checkbook / View Bank Transactions command.

Resolving duplicate transactions In most cases, CBS can determine if a transaction has already been retrieved. When CBS connects to your financial institution’s computer and starts to retrieve transactions, if it encounters a transaction that has already been retrieved, it displays the following message prompt.

Choose the appropriate transaction for the duplicate transactions. If you delete a transaction after it has been retrieved and then choose to retrieve the transactions again, CBS will be able to determine that the deleted transaction was retrieved, and it will display the above message prompt when it tries to re-retrieve the transaction.



Downloading a file If your bank does not appear on the list of banks that support online banking, you will not be able to retrieve transactions directly into CBS. However, your bank may provide your account information in an electronic file that you can download. If you financial institution can provide these files in any of the following file formats, CBS can read the transaction data: Open Financial Exchange (OFX) and Quicken Open Financial Exchange (QFX), Microsoft Money, Quicken version 2001 and higher, and QuickBooks version 2001 and higher.

Once you have downloaded a file from your financial institution, you can use the following procedure to retrieve data from that file.

1. Open the Select Statement Activity dialog using either of the following methods:

Choose Checkbook / Reconcile and then choose the desired CBS checkbook. In the Reconcile Transactions window, click the Begin button in the Quick Clear group box.

Choose Checkbook / View Bank Transactions and then choose the desired CBS checkbook.

2. In the Select Statement Activity dialog, enter a date range for the transactions you want to retrieve, or select All.

3. Click the Retrieve from file button. If you have not yet downloaded a file, click the Online button to connect to your financial institution’s website. You can then access your account information and download your transactions.

4. In the Select Bank File dialog, navigate to the file that contains your bank

transactions. CBS will then process the file and present the bank transactions.


Transaction Details CBS allows you to enter detailed information about a transaction in any of the following windows:

The Details tab of the Checkbook data-entry window.

The CW Distributions tab of the Setup / Vendors window (non-AP vendors).

The Details tab of the Setup / Memorized Transactions window.

CBS uses the transaction detail information for reporting purposes and for checkbook reconciliation. CBS does not export the transaction details to your accountant. You cannot enter transaction detail for noncalculating payroll checks, PayCheck checks, or AP payments.

Entering detailed transaction information You can specify transaction details for vendors in the CBS CheckWriter™ module and then use the details in the Checkbook data-entry window. If your accountant has set up your CBS program to allow you to write CheckWriter checks for 1099 vendors, you can select AP vendors in the Checkbook data-entry window.

If you chose the Update Memorized Transactions option on the General tab of the Utilities / Options dialog and you enter any user-defined details for a memorized transaction on the Details tab, the program updates the memorized transaction as follows.

The CheckWriter transaction created from the memorized transaction will include all user-defined detail items (including the dollar amounts) associated with the memorized transaction.

The program will remove any detail items with zero amounts from the CheckWriter transaction created from the memorized transaction. However, it will not remove these items from the memorized transaction.

If you manually delete any detail items from a CheckWriter transaction created from a memorized transaction, the program will not remove those items from the memorized transaction.

You can also define and save detail descriptions in the Detail Descriptions user-defined list (by choosing Setup / Maintain Lists / Detail Descriptions). You can then

Transaction Details


include the user-defined detail information on the following CheckWriter reports by choosing User-Defined Detail in the Format group box:

Unprinted Regular Checks

Printed Regular Checks

Deposits List

Other Bank Items List

Vendor List

The list of detail descriptions available in the drop-down list in the Description column is defined by the user-defined list. Because the user-defined detail is not exported to your accountant, you can edit the transaction details at any time, even if the transaction has been exported. However, if a transaction has been cleared during checkbook reconciliation, you cannot edit the detail information.

During checkbook reconciliation, if you choose the Details view option on the Checkbook Transactions tab of the Reconcile Transactions window, be sure to enter the appropriate detail information. For example, if your bank statement deposit amounts include service fees for credit card vendors and you want to use the detail to make it easier to combine deposit amounts for clearing, you may want to use the same detail description for the credit card service fee transaction and the original deposit detail for that credit card. This way, you can easily select the deposit amount less the service fee in the Detail dialog.

If you are licensed for the optional CBS Accounts Receivable module and you enter customer payments in the Tasks / Deposits window, the program uses these payments as the detail information for the deposit transaction, either by payment type or by credit card vendor description. For AR deposits, CBS combines all checks, cash, and deposit reduction amounts into a “cash equivalents” transaction when the Summarize Cash, Checks, and Deposit Reduction Amounts checkbox is marked in the Edit / Detail Options dialog.

Viewing detailed transaction information You can view the list of checkbook transactions in detail by choosing the Details option in the View group box. If you choose the Details view, the program will list each transaction detail as a separate transaction in the Checkbook transactions list.

If you clear one or more (not all) of the detailed transactions that are part of a single transaction, the program considers the transaction as partially cleared. If you choose the Totals view, the program places a P in the Cleared column of the checkbook register listview for any partially cleared transaction.

If your accountant has configured your CBS software to allow you to write CheckWriter checks to 1099 Vendors, you can enter detailed information on the Details tab of the Checkbook data-entry window).

If you are licensed for the optional CBS Accounts Receivable module and you mark the Summarize cash, checks and deposit reduction amounts checkbox in the Edit / View Detail Options dialog, the program will summarize customer cash and check payments and any deposit reduction amounts as one cash equivalents transaction. You can set up the detail for credit card and COD customer payments

Transaction Details


as user-defined credit card vendor descriptions or payments. If you use the same user-defined credit card vendor description for both a credit card payment and a COD payment, CBS will list each payment as separate transactions.

You cannot enter transaction detail for noncalculating payroll checks, PayCheck checks, or AP payments.

The Options dialogs for the following CheckWriter reports now include a User-defined detail option in the Format group box. If you choose this format option, the program will include the description from the Detail Description user-defined list.

Unprinted Regular Checks

Printed Regular Checks

Deposits List

Other Bank Items List

Transaction Details



Other Checkbook Reconciliation Dialogs

When the Checkbook Transactions tab of the Reconcile Transactions window is active, you can access other dialogs from the Edit menu to help with the reconciliation.

Reconciliation Detail Options You can choose the type of detail to include when the Details option is selected in the View group box. Note that the data-entry options you choose for one checkbook reconciliation apply only to that checkbook.

Choose Edit / Detail Options.

View check detail. CBS displays the check detail for all CBS CheckWriter checks.

View other item detail. CBS displays detail for any Other Item transaction.

View deposit detail. CBS displays detailed customer payment information.



Summarize cash, checks and deposit reduction mounts. CBS summarizes customer cash and check payments and any deposit reduction amounts as one cash equivalents transaction.

Summarize AR credit cards/COD amounts by payment type. CBS summarizes by payment type all Accounts Receivable payments included in this deposit to a single line for each deposit, regardless of the number of payments deposited.

Note that the data-entry options you choose for one checkbook reconciliation apply only to that checkbook.

Filter Reconciliation You can limit the number of transactions displayed in the Checkbook Transactions tab of the Reconcile Transactions window by specifying specific transactions to filter out of the list. You can filter by cleared status (cleared, partially cleared, and noncleared), transaction type (checks, payroll checks, other items, and deposits), and ranges (check number, date, description, and amount).

Choose Edit / Filter Reconciliation.



Clear Check Range You can specify up to five check number ranges to clear at one time.

Choose Edit / Clear Check Range.


Checkbook Reconciliation Report You can use the Checkbook Reconciliation report to help you reconcile the selected checkbook or to keep a copy of your work. The Checkbook Reconciliation report shows you summary information about the selected checkbook, including the previous month’s balance, the current ending statement balance, and checkbook balance. The report also lists each uncleared deposit and other additions, as well as each uncleared check and other payments.

You can generate the report for any checkbook reconciliation you have finalized using CBS version 2003.1.0 or higher, or you can generate the report for current work in progress.

Printing the Checkbook Reconciliation report If your accountant has enabled the checkbook reconciliation feature in your CBS software, you can print a copy of the Checkbook Reconciliation report as follows.

1. Choose File / Queue Reports and click the CheckWriter tab.

2. Click the Options button associated with the Checkbook Reconciliation report.

3. In the Checkbook Reconciliation Options dialog, choose Statement date in the Report Type group box, and then select the date of the statement to print.

4. In the Detail to include group box, mark the checkbox(es) associated with the type of detail(s) to include in the report.

5. Select the order in which you want the transactions to be printed (by number or by date) from the Sort checks by drop-down list.

6. Click OK.

7. In the Queue Reports dialog, mark the checkbox associated with the Checkbook Reconciliation report and click the Print button.

Checkbook Reconciliation Report


Out-of-balance reconciliation If the reconciliation is not in balance, CBS will include information about the items that are causing the reconciliation to be out of balance. The example below shows the Summary Information section of a Checkbook Reconciliation report for an out-of-balance reconciliation, and an explanation of each line follows.

Note that the amount of detail included in lines 2, 3, 9, and 10 depends on the options you choose in the Checkbook Reconciliation report options dialog.

The following items reconcile the CBS checkbook to the financial institution data.

1 Statement Beginning Balance. From the Summary tab of the Checkbook / Reconcile Transactions window or the ending balance of a previous finalized reconciliation.

2 Plus <x> Cleared Deposits and Other Additions. Sum of all Deposit or Other Item-Deposit type transactions marked as cleared in the CBS checkbook.

3 Minus <x> Cleared Checks and Other Payments. Sum of all Check or Other Item-Payment type transactions marked as cleared in the CBS checkbook.

4 Unreconciled Statement Amount. Difference between the transactions marked as cleared in the CBS checkbook and the transactions that have cleared based on the financial institution statement. CBS calculates this amount by comparing the Statement Beginning Balance +/- cleared transactions amount to the Statement Ending Balance. This amount is included in the report only; it is not added to the CBS checkbook. This amount will be reversed in line 11.



Note: If you allow CBS to make an adjustment when you finalize the reconciliation out of balance, line 4 on this report will be labeled “Checkbook Reconciliation Adjustment” and the program will create an adjustment transaction in the Checkbook data-entry window. In addition, the report will not include the reversal on line 11.

5 Statement Ending Balance. From the Summary tab of the Checkbook / Reconcile Transactions window.

6 Plus <x> Uncleared Deposits and Other Additions. Sum of all Deposit or Other Item-Deposit type transactions dated on or before the statement ending date and not marked as cleared or selected to clear.

7 Minus <x> Uncleared Checks and Other Payments. Sum of all Check or Other Item-Payment type transactions dated on or before the statement ending date and not marked as cleared or selected to clear.

8 Calculated Checkbook Balance as of statement ending date <date>. Ending Balance amount (line 5) +/- Uncleared transactions amount (lines 6 and 7).

The following items reconcile the ending balance as reported by the financial institution to the current CBS checkbook balance.

9 Plus <x> Future-Dated Uncleared Deposits and Other Additions. Sum of Deposit or Other Item-Deposit type transactions dated after the statement ending date and not marked as cleared or selected to clear.

10 Minus <x> Future-Dated Uncleared Checks and Other Payments. Sum of Check or Other Item-Payment type transactions dated after the statement ending date and not marked as cleared or selected to clear.

11 Reversed “Unreconciled Statement Amount.” If the report includes an Unreconciled Statement Amount (line 4), the program reverses the balance by this same amount. CBS assumes that the Ending Balance will be reconciled before it is finalized; therefore, the adjustment will either be added to the CBS checkbook or it will no longer be necessary to sum to the ending balance.

If the report includes a Checkbook Reconciliation Adjustment (line 4), this amount is not included on the report because the adjustment amount has already been added to the CBS checkbook as a transaction detail.

12 Calculated Unreconciled Amount. Total amount unaccounted for in the CBS checkbook. CBS calculates this amount to ensure that the Ending Balance +/- future-dated uncleared transactions +/- reversals for an out-of-balance checkbook reconciliation (line 4) is equal to the balance in the CBS checkbook. This amount is most often attributed to the net of checkbook adjustments that never appear in the checkbook reconciliation.



Follow these steps to try to determine the cause:

In the Checkbook data-entry window, click the Number column heading to sort transactions by number. Scroll through the list until you see the Adjustments and review the following for each:

Adjustment date — CBS includes the future-period adjustments as a separate line item on the report because all other adjustments are assumed to have been resolved in order to have the CBS checkbook ending balance match the bank’s ending balance.

Adjustment amounts — When you net the adjustment amounts, the total should match the amount on the report. Remember to exclude any amounts dated after the statement ending date.

Reason for the adjustment — Remember that adjustments are the only transactions not included in a checkbook reconciliation.

If you cannot reconcile the report amount using the adjustments and any of the following situations caused the adjustment on line 11, you should enter an adjustment transaction in CBS:

You finalized the checkbook reconciliation out of balance but did not make an adjustment.

You finalized the checkbook reconciliation out of balance and made an adjustment but later deleted the adjustment from the CBS checkbook.

You entered and then cleared historical transactions without entering any current transactions to the checkbook.

You finalized the checkbook reconciliation and then deleted unexported, cleared checkbook transactions without adding the transactions back to the checkbook. Note that when you do add the transaction back to the CBS checkbook, it will appear as an uncleared transaction during the next reconciliation. To clear it, you should add a historical transaction with the reverse amount and then clear both transactions.

13 Actual CBS Checkbook Balance as of reconciliation. Actual balance of the selected CBS checkbook.

14 Statement Ending Balance calculated per bank transactions. The sum of the transactions or the account balance retrieved from the financial institution. CBS displays this line in the report only if the ending balance differs from the calculated balance of the selected CBS checkbook. This amount includes only financial institution transactions entered in the Enter Statement Transactions dialog, retrieved from a transaction data file, or retrieved directly from your financial institution’s computers. Note that your financial institution may calculate the balance differently, so you may expect this difference based on the data provided by your financial institution.

Other reported adjustments. Each time you finalize a checkbook reconciliation, you may want to regenerate the Checkbook Reconciliation report based on the date the reconciliation is finalized. If you delete or modify any transactions that affect the reconciliation and then regenerate a Checkbook Reconciliation report for that checkbook, the report will include a line labeled “Report Adjustment for transactions modified or removed.” This amount allows the report to foot to the previously reported amounts.

checkbook reconciliation in client bookkeeping...

Documents