Sage 50 Canada Bank Reconciliation Discrepancy or An Unresolved Amount

Facing Sage 50 bank reconciliation discrepancy and not being able to get through it, then you have come to the right place to get the issue sorted. The money control system needs certain articulation.

In this article, you get all the information about Sage 50 Reconciliation. Generally, Sage Canada error solves the purpose for adjusting money that appears in the general record in the bank proclamation. There should be an equivalence made between the two parties to stop blunders that are being made. The processes can be compromised due to these blunders that reveal mistakes recorded or noted either in bank explanations or the organizational books.

 There are certain advantages to bank accommodations

• Accuracy: It possesses the exact calculations.
• Security: you should focus on the changes if your bank experiences any.
• Cash flow: You can easily monitor your current budget and position and the exchanges to be taken place to clear your record.

What is Sage 50 Bank Reconciliation Discrepancy

Sage 50 Canada bank reconciliation discrepancy is a program designed to help accountants find and correct many of the bank reconciliation errors in Sage that can occur during tax preparation. Bank reconciliation statements are financial documents that summarize your bank account activity as well as internally recorded activities, demonstrating that the two records are in agreement with one another, and are used to reconcile your bank accounts.

When reconciling a bank account balance in an entity’s books of accounts with the amount reported by the financial institution in the most recent bank statement, this is known as bank reconciliation, according to accounting standards. The existence of a difference between the two data should be explored as quickly as possible, and if required, it should be corrected.

What are the most important aspects to remember about Sage 50 Bank Reconciliation Discrepancy?

• The goal of bank reconciliation is to determine whether or not your account records and bank statements are in agreement.
• Once a discrepancy and/or an unsettled amount have been identified, the required time must be invested in determining their origin.
• There are no bank reconciliation analysis services or fast fixes available via Sage Consultant.
• Since it is not feasible for Sage to determine what entries should be present in your company’s books or what transactions should be reported to your bank statement.

What are the measures to take to correct a Sage 50 Bank Reconciliation Discrepancy or an Unresolved Amount

The following are the many actions to take to correct a bank reconciliation that has a discrepancy and/or an unsettled amount.

Step I: Double-check the items listed below

• You have correctly entered the following information
  • Opening Balance Statement Ending 
  • Balance Statement Statement Opening
  • Balance Statement the beginning date of the statement.
  • The ending date of the statement
• In Sage 50, all of the transactions on your bank statement were tracked down to their source
• All of the transactions have the right dates on them.
• You have completed the clearing of the transactions that show on your bank account statement.
• Your bank account in Sage 50 is correctly balanced in terms of book balance.
• You have included bank fees in the Expense tab if they are appropriate.
• You have included any profits (interest, exchange, or mistakes) on the Income tab if they are appropriate.
• The outstanding amount is the sum of all of the items that have not been ticked in the Reconciliation box.

Step 2: There is a mismatch in my data (bank reconciliation will not post)

The difference between the opening book balance and the opening outstanding plus statement opening balance is called the discrepancy.

The "discrepancy amount" is calculated by subtracting the opening book balance from the opening outstanding and subtracting the opening balance of the statement.

• To determine the value of the opening outstanding, please refer to the previous period’s residual outstanding amount found after your reconciliation.
• If you are beginning your reconciliation for the first time, your opening outstanding will be equal to the amount of all past outstanding that you have accrued before the start date.
• To get the value of the opening book balance, do the following calculations.
  • The bank reconciliation will not be able to proceed to the following period unless the difference is resolved.
  • Comparing the results of the following comparison will determine whether or not there is data corruption in your bank reconciliation solely.
    • Is the opening book balance equal to the sum of the opening outstanding plus the opening balance of the statement.
    • If the sum of these two numbers is not equal, the discrepancy amount is the difference between them.
    • If the two sums are equal, but you still have a discrepancy amount, the bank reconciliation database likely has some incorrect information about the transactions.
• The Balance is the very first line on the very top of the screen.
• Click on the OK button.
• Select the appropriate account.
• Set the start and end dates to be the same as your bank reconciliation dates and the same as your payment due dates.
• Now select Reports, Financials, and General Ledger are all available (or Transactions by Account).
• In this case, the opening book balance is smaller than the total of the following, Opening outstanding plus the opening balance of the statement of operations.
• As a result, there are three alternatives:
  • The opening book balance is significantly undervalued.
  • The number of outstanding at the start of the year is much too large.
  • The initial balance on the statement is excessive.
• The discrepancy is a good thing: As a result, the opening book balance exceeds the total of the following two items: opening outstanding plus statement opening balance. As a result, there are three alternatives.
  • A disproportionately large opening book balance exists.
  • This is an excessively low number of outstanding.
  • Too little money is in the account at the start of the statement.

Step 3: You have an outstanding bank reconciliation issue

Total outstanding = (statement end balance + ending outstanding) minus the total ending book balance

The “unresolved amount” is calculated as the sum of the statement end balance plus the ending outstanding balance less the ending book balance.

• The ending outstanding is the amount that remains outstanding at the bottom of your bank reconciliation window after everything has been checked.
• To determine the value of the closing book balance,
  • Select Reports, Financials, and then General Ledger from the drop-down menu (or Transactions by Account).
  • Set the start and end dates to be the same as your bank reconciliation dates and the same as your payment due dates.
  • Select the appropriate account.
  • Click on the OK button.
  • Look for the Balance towards the bottom of the page, on the final line. This is the final balance of your book.
    • If the sum of these two sums is not equal, the unsettled amount is the difference.
    • If the two sums are identical, but you still have a discrepancy amount, this indicates that the bank reconciliation table has some incorrect data, and you must reset the bank reconciliation table.
• Upon approving an automatic general journal entry and resolving any outstanding issues, you may go to the following period.
  • Sage does not encourage this method since you are most likely postponing the resolution of the same problem in the future.
  • The goal of using bank reconciliation is likewise defeated in this manner.
  • If you have decided to post and accept the automatic general journal entry, you should stop here.
• Unresolved is negative

This signifies that the closing book balance exceeds the total of the ending outstanding + statement ending balance, indicating that the unresolved position is negative.

• As a result, there are three alternatives:
  • The concluding book balance is positive.
  • The outstanding at the end of the month is much too low.
  • The balance after the sentence is too low.

Unresolved is positive

It is positive if the ending book balance is less than the sum of the ending outstanding plus the ending statement balance: this indicates that the finishing book balance is less than the sum of the ending outstanding plus the ending statement balance.

As a result, there are three alternatives.

• The concluding book balance is insufficient.
• The amount of money owed after the month is excessive.
• The balance towards the conclusion of the statement is excessive.

Step 4: A discrepancy is a negative number

The following are some probable explanations for each:

• The opening book balance is significantly undervalued:
  • Several debit records are missing before the commencement date.
  • There are an excessive number of credit entries before the commencement date.
  • On the bank reconciliation victory, the start date of the statement is incorrect.
• The number of outstanding at the start of the semester is excessive:
  • There are an excessive number of overdue debit cheques (customer payment cheques or general journal revenue cheques)
  • Most likely as a result of wrongly posted cheque expiration dates or duplicate entries.
• There aren’t enough outstanding credit checks (payment, payroll, or general journal payment cheques)
• Adding an excessive number of past debit cheques or an insufficient number of prior credit cheques to this account if is your first bank reconciliation for this account.
• On the bank reconciliation window, the statement start date is entered incorrectly.

• The beginning balance of the statement is very high:
• Although it is very unlikely, your bank statement may include the following inaccuracies from the bank:
  • Instead of March 1st to March 30th, the bank offered you the dates of March 3rd to March 30th.
  •  Human errors in the banking industry, such as duplicate entries (s)
  •  The deposit(s) from another firm to your company’s bank account were made in error by the other company🗄️.
• When comparing the amount on your bank statement to the amount on the bank reconciliation page, an error occurred during the entry of the amount.
• Statement for the time before this one The bank statement end balance for the current period is incorrect and does not match the bank statement end balance for the previous period.
• On the bank reconciliation window, the statement start date is entered incorrectly.

You must determine which of the three alternatives is accurate and which are incorrect, and the process of elimination is the most effective method of doing so.

• Usually, the initial balance on the statement is right.
• Then you are left with either an incorrect opening book balance or an incorrect opening outstanding balance on the statement.
• Once you have determined the source of the issue, make the necessary modifications or changes.
• The entry/adjustment must be made before the period covered by the current bank reconciliation.
• After publishing the adjustments/entries, if the disparity stays the same, you may need to re-run your bank reconciliation.
• It is necessary to clear the credit note on the same day as the voided receipt or payment if you have invalidated a receipt or payment but have not done so where you should have done. 
• Unless you also have an unsettled amount, you should stop here.

Step 5: The discrepancy is Positive

1.   The following are some probable explanations for each:

A. The opening book balance is excessively high

• There are an excessive number of debit entries before the start date.
• There is a credit entry or entries that are missing before the commencement date.
• On the bank reconciliation window, the statement start date is entered incorrectly.

B. This is an excessively low number of outstanding

• There aren’t enough debit checks outstanding to cover the amount of money owed (customer payment cheques or general journal revenue cheques)
•  Most likely as a result of wrongly posted cheque expiration dates or duplicate entries.
• There are an excessive number of outstanding credit checks (payment, payroll, or general journal payment cheques)
• If this is your first bank reconciliation for this account, you may have entered too many previous credit cheques or not enough prior debit cheques into the system.
• Similarly, if an adjustment was made to the opening book balance, this adjustment may need to be withdrawn from past outstanding transactions as well since the adjustment would be included in the discrepancy amount.
• On the bank reconciliation window, the statement start date is entered incorrectly.

C. The beginning balance of the statement is low

• Although it is very unlikely, your bank statement may include the following inaccuracies from the bank:
  • Instead of March 1st to March 30th, the bank offered you the dates of March 3rd to March 30th.
  • Human errors in the banking industry, such as duplicate entries (s)

Inadvertently, a charge or charges were made to your firm’s bank account by an outside entity.

• When comparing the amount on your bank statement to the amount on the bank reconciliation page, an error occurred during the entry of the amount.
• A discrepancy exists between the Statement End Balance for the prior period and the bank statement end balance for the preceding period.
• On the bank reconciliation window, the statement start date is entered incorrectly.

2. Find out which of the three alternatives are accurate and which are not accurate. The best strategy is to go through the process of elimination:

• In most cases, the statement opening balance is accurate.
• It is left with either a negative opening book balance or a negative opening outstanding, depending on which is greater.

3. Once you have determined the source of the issue, make the necessary modifications or changes.

• The entry/adjustment must be made before the period covered by the current bank reconciliation.
• If the gap remains the same after publishing the adjustments/entries, you may need to reset your bank reconciliation.

4. It is necessary to clear the credit note on the same day as the voided receipt or payment if you have invalidated a receipt or payment but have not done so where you should have done so.

5.   Unless you have an outstanding balance, you should stop here.

Step 6: When the state of being unresolved is negative

1. The following are some probable explanations for each.

A. The ending balance book is high

• There are an excessive number of debit entries in this timeframe.
• There are one or more credit entries that are missing from this era.
• An adjusted transaction in which the deposit entry has been verified but the corresponding withdrawal entry has not been checked.
• A credit transaction from a prior period has been reversed (voided), yet the reverse debit item from that period is now showing up on this period’s ledger.
  • It is necessary to record a replacement credit entry to replace the canceled credit transaction to equalize the discrepancy.
  • If you believe that this replacement credit entry should not exist, your book is likely missing a credit entry from a period that is earlier than the prior period in question.
  • You’ll have to dive a little further into the past.
  • For the time being, there have been no bank fees reported.
  • On the bank reconciliation window, the statement end date is entered incorrectly.

B. The outstanding at the end of the month is too low:

• Some outstanding debit cheques have not been cashed (customer payment cheques or general journal revenue cheques)
  • Most likely as a result of wrongly posted cheque expiration dates or duplicate entries.
  • Some unpaid checks have an incorrect amount written on them (too large or too low)
• There are excessive numbers of outstanding credit checks (payment, payroll, or general journal payment cheques).
• You may have included too many previous credit cheques or not enough prior debit cheques to this account if this is the first time you have done a bank reconciliation for this account.
• On the bank reconciliation window, the statement end date is entered incorrectly.

C. The balance after the sentence is too low

• Although it is very unlikely, your bank statement may include the following inaccuracies from the bank:
  • The bank extended your loan from March 1st to April 3rd rather than March 1st to March 30th.
  • Human errors in the banking industry, such as duplicate entries (s)
  • Inadvertently, a charge or charges were made to your firm’s bank account by an outside entity.
• A clerical error occurred when inputting the final balance amount in the bank reconciliation screen while comparing your bank statement to the bank reconciliation screen.
• On the bank reconciliation window, the statement end date is entered incorrectly.

2.   Find out which of the three alternatives is accurate and which are incorrect by comparing them. The best strategy is to go through the process of elimination:

• Usually, the balance after the sentence is right.
• Then you are faced with the choice of either having an excessive ending book balance or having an excessive finishing outstanding.

3. Once you have determined the source of the issue, make the necessary modifications or changes.

• The entry or adjustment must be made within the current period of the bank reconciliation.
• Depending on whether the unsolved issue is still there after publishing the adjustments/entries, you may need to restart your bank reconciliation process.

4. It is necessary to clear the credit note on the same day as the voided receipt or payment if you have invalidated a receipt or payment but have not done so where you should have done so.

Step 7: When the state of being unresolved is positive

1.   The following are some probable explanations for each:

A. The final book balance is insufficient:

• There are an excessive number of credit entries in this timeframe.
• There are one or more debit entries that are missing from this time.
• An adjusted transaction has happened in which the withdrawal entry has been verified but the corresponding deposit entry has not been checked.
• A debit transaction from a prior period has been reversed (voided), yet the reverse credit entry from that period is now showing up on the current period’s ledger.
• It is necessary to input a replacement debit entry to replace the canceled debit transaction to balance the discrepancy.
• For those of you who believe this replacement debit entry should not exist, this signifies that your records are missing this debit entry from a period earlier than the preceding period in question.
• You’ll have to dive a little further into the past.
• It has not been possible to document any bank gains (interests, etc.).
• On the bank reconciliation window, the statement end date is entered incorrectly.

B. The number of outstanding after the semester is excessive

• There are an excessive number of overdue debit cheques (customer payment cheques or general journal revenue cheques)
• Most likely as a result of wrongly posted cheque expiration dates or duplicate entries.
• Some unpaid checks have an incorrect amount written on them (too large or too low) Credit checks that have not been cashed are not cashed (payment, payroll, or general journal payment cheques)
• Adding an excessive number of past debit cheques or an insufficient number of prior credit cheques to this account if is your first bank reconciliation for this account.
• On the bank reconciliation window, the statement end date is entered incorrectly.

C. The concluding balance of the statement is too high

• Although it is very unlikely, your bank statement may include the following inaccuracies from the bank:
• The bank extended your loan from March 1st to April 3rd rather than March 1st to March 30th.
• Human errors in the banking industry, such as duplicate entries (s)
• The deposit(s) from another firm to your company’s bank account were made in error by the other company🗄️.
• A clerical error occurred when inputting the final balance amount in the bank reconciliation screen while comparing your bank statement to the bank reconciliation screen.
• On the bank reconciliation window, the statement end date is entered incorrectly.

2.   Find out which of the three alternatives is accurate and which are incorrect by comparing them. The best strategy is to go through the process of elimination:

• Usually, the balance after the sentence is right.
• Then you are faced with the choice of either having an excessive ending book balance or having an excessive finishing outstanding.

3.   Once you have determined the source of the issue, make the necessary modifications or changes.

• The entry or adjustment must be made within the current period of the bank reconciliation.
• Depending on whether the unsolved issue is still there after publishing the adjustments/entries, you may need to restart your bank reconciliation process.

4.   It is necessary to clear the credit note on the same day as the voided receipt or payment if you have invalidated a receipt or payment but have not done so where you should have done so.

How to Post a Bank Reconciliation Adjustment in Sage 50

If a transaction occurs on your bank statement but does not display in Sage Accounts, you can enter it from the Reconcile pane when performing your bank reconciliation.

Steps to Post a Bank Reconciliation Adjustment in Sage 50

For posting a Bank reconciliation Adjustment in sage 50, proceed to follow the listen-to resolution step-by-step to avoid any unnecessary errors.

Sage 50 Accounts v24.1 & Above

For faster processing, utilize the adjustment options directly from the Reconcile window toolbar in Sage 50 Accounts v24.1 and later.

For Posting a Bank Reconciliation Adjustment

• First and foremost step, proceed to click the relevant adjustment type, on the Reconcile window Toolbar. For example; Bank Receipts.
• Now, proceed to enter the details of the required transaction.
• Finally hit Save and then click Close.

Sage Accounts v24.0 & Below

• For the very first step, click on Adjust in the Reconcile window.
• After the subsequent step, proceed to select the particular type of adjustment you desire to post. For example; Bank Receipts.
• Next, click Ok.
• Once you click Ok, then to continue, enter the required transaction details.
• Hit Save and then Hit on Close.

The adjustment transactions appear in the matched transactions pane. 

You may need to get your error resolved. Call on Sage 50 Canada consultant our Toll-Free Phone Number to get assistance from our technical personnel or get your issue resolved via our Live Chat Consultant team.

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