Trust Bank Reconciliation Summary

Created by Allison Cloyd, Modified on Mon, 14 Nov 2022 at 12:56 AM by Allison Cloyd

Overview

The reconciliation summary varies by region to be compliant with local regulations. The default report is based on Australian Uniform Law and meets the requirements of most jurisdictions except New Zealand.

Default Format

 

The term “Cash book” does not refer to the “Cash book” reports, it is purely a generic accounting term to describe the balance in Actionstep as opposed to the bank account (Actionstep being a “Cash book”).

 

Trust account balance as-at {date}

This is the amount entered as the “Closing balance” when you created the bank reconciliation.

 Add outstanding deposits

This is the amount entered in the “Adjustments” section of the bank-rec where you selected an item as an outstanding deposit.

Add adjustments

This is other positive adjustments (other than outstanding deposits) as per the adjustments section of the bank-rec.

Sub total (first instance)

This is the sum of the first three values

Less unpresented payments

This is the amount entered in the “Adjustments” section as “unpresented payments”

“Less adjustments”

This is the other negative adjustments (other than unpresented payments) from the adjustments section of the bank-rec.

 Sub total

This is a sum of the “Less adjustments”

 Reconciled cash book balance

This is the first “Sub total” minus the second “Sub total” which is essentially what you have reconciled Actionstep to.

System cash book balance

This is the balance of all data (not just that in the bank-rec) as at the closing date.

Variance

Difference between the “Reconciled” and “System” cash book balances.

 

This difference occurs when:

→ You have made an adjustment as part of a particular reconciliation, AND

→ The adjustment has not been accounted for in a subsequent reconciliation, as at the point in time for which you generate the report. 

 

An example to demonstrate the concept above

You are reconciling the June period, and enter in an adjustment on the 1st of July. If you were to run the reconciliation summary report, you would see a variance of the adjustment amount (assuming all other variables remain constant). 

--

A week later, you reconcile the 1st week of July. Assuming there are no further adjustments, this variance will now be a zero balance for this particular reconciliation, as well as previous ones, because all adjustments have been accounted for. 

 

New Zealand Format

 

Opening balance brought forward from {date}

This is the balance brought over from the previous reconciliation, and does not factor any adjustments.

Plus reconciled deposits

This is the sum of the deposits that have been matched against bank statement items during the reconciliation process, which is added to the opening balance.

Less reconciled payments

This is the sum of the payments that have been matched against bank statement items during the reconciliation process, which is subtracted from the opening balance.

Reconciled from cashbook

This is the cashbook balance after reconciling all transactions for the period in Actionstep against bank statement items

Plus deposits not banked

This is the total of the amounts entered into the “Adjustments” section as "outstanding deposits".

Less unpresented payments

This is the total of the amounts entered into the “Adjustments” section as “unpresented payments”.

Balance as per cashbook

This is the reconciled balance before adjusting for any outstanding deposits or unpresented cheques.

Plus adjustments

The total of any outstanding deposits and/or unpresented cheques, which is added to the cash book balance.

Bank closing balance {date} 

The reconciled balance after matching all transactions for the period, accounting for any adjustments.