Eliminate the Sage 50 Bank Reconciliation Error

What is the definition of “DISCREPANCY”? The phrase indicates a “situation in which a user or organization utilizes the bank reconciliation function to verify the account’s accuracy.” The method is specifically engineered to compute the bank statement and conduct bank transactions. Upon effective calculation of the transaction, the disparity between the two values should be zero. If the difference between the two values is not zero, this condition is referred to as a discrepancy, and the user will encounter a Sage 50 Bank Reconciliation Discrepancy error.

To resolve this, you must take a few critical steps, which we summarize below. Examine the troubleshooting steps for the Sage 50 bank reconciliation error as well as the numerous significant causes that contribute to this problem.

A Brief on Sage 50 Bank Reconciliation Discrepancy

Throughout the process of tax preparation, users encounter numerous errors that necessitate resolution. Users utilize a widely recognized program called Sage 50 Bank Reconciliation Discrepancy as a troubleshooter. This program was designed to assist accountants in locating and correcting numerous bank reconciliation errors. Bank reconciliation statements are financial documents that provide a summary of the activity on your bank account and also detail the activities that were recorded internally. This will demonstrate the consistency of both documents, which are utilized in the process of reconciling your bank accounts.

Transaction-Account-Reconciliation

In accordance with accounting standards, bank reconciliation occurs when the balance of a bank account in an entity’s books of account corresponds to the amount disclosed by the financial institution in its most recent bank statement. Prompt detection of any discrepancy between the two sets of data is imperative, and rectification is necessary.

Essential Aspects of Sage 50 Bank Reconciliation Discrepancy

  1. The Bank Reconciliation aims to identify whether your account records and bank details are in agreement.
  2. When the discrepancy or unresolved quantity has been identified, the time required to ascertain its source should be allocated.
  3. There are no such bank reconciliation analysis services or fast fixes available through Sage Consultant. In short there is nothing called fast fixed in Sage Consultant.
  4. The software is not able to decide what entries must be their in your company’s book. Hence, which should be transacted in your bank statement.

What Causes the Sage 50 Bank Reconciliation Disrepancy?

The Sage 50 bank reconciliation discrepancy can emerge due to various reconciliation adjustments, such as journal entries and modified, deleted, or added transactions. Hence, you encountered an error while reconciling the Sage 50 bank statement.

How to Fix the Sage Line 50 Reconciliation Error

To resolve the Sage Line 50 reconciliation error in your system, you have to undergo a few steps mentioned below. Make sure you follow each and every step without skipping any pointers so that you can have a glitch-free and successful result.

Step 1: Checkmark the items listed below:

  • First, you have to correctly enter the information listed below:
  • Opening Balance Statement Ending
  • Balance Statement Opening.
  • Balance Statement: the beginning date of the statement.
  • Then tick the ending date of the statement.
  • In Sage 50, the system tracked down all the transactions on your bank statement to their source.
  • Now, all of the transactions have the right dates on them.
  • Complete the clearing of the transactions that show on your bank account statement.
  • Make sure your bank account in the Sage 50 application must correctly balanced in terms of book balance.
  • If they are appropriate, then you have to include the bank fees in the expense tab.
  • Next, you have to include any profits, such as interest, exchange, or mistakes, on the income tab if they are appropriate.
  • The total outstanding amount includes all the items that have not been checked in the reconciliation.

Step 2: The Bank Reconciliation will not post

  • First, you have to calculate the discrepancy.
    • To get the discrepancy amount, you have to subtract the opening book balance from the opening outstanding and subtract the opening balance of the statement.
    • Discrepancy + Opening Book Balance (opening outstandings + statement opening balance)
  • Now, you have to discover the opening outstanding values by referring to the previous year’s remaining outstanding sum of the reconciliation.
  • If you are performing reconciliation for the first time, then your “opening outstanding” is the same as the total of prior outstanding you have added to the start date.

Follow the steps mentioned below to discover the opening book balance value:

  • First, you have to fix the discrepancy; the bank reconciliation cannot proceed with the new steps.
  • If you found data corruption in the bank reconciliation, then follow the below comparison:
  • Check the opening book balance + statement opening balance + opening outstanding.
  • The results indicate two different situations:
  • if the calculated amount is not equal, that difference is called the discrepancy amount.
  • If the total remains the same but there is still a disparity, it indicates that there is damaged data. To fix this, you have to reset the bank reconciliation.
  • The opening balance is the amount you get on the top.
  • Click on the OK tab and select the appropriate account.
  • Then, adjust the beginning and finishing dates. Check it should be the same as the bank reconciliation dates.
  • Click on the Reports and choose the Financial option.
  • At last, hit on the General Ledger.
  • In this scenario, the opening book balance is smaller than the total of the following: the opening outstanding plus the opening balance of the statement of operations.
  • Then, you get three alternatives:
  • Undervalued opening book balance.
  • The number of outstanding items at the start of the year is too large.
  • Lastly, the initial balance on the statement is excessive.
  • Keep in mind that the discrepancy is a good thing. As a result, the opening book balance exceeds the total of the following two products: opening outstanding plus statement opening balance. Then in conclusion you get three alternatives:
  • The disproportionately large opening book balance exists.
  • There was less money in the account at the start of the statement.
  • Extremely low number of outstanding.

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Step 3: Resolve the outstanding bank reconciliation issue

  • First, calculate the total outstanding amount by implementing the below-stated formula:
    • Total Outstanding + (statement end balance + ending outstanding) minus the total ending book balance
    • Ending Amount: The balance which remains outstanding at the bottom of your bank reconciliation window after everything has been checked.
  • Now, you have to identify the value of the closing bool balance by following the steps below:
  • Choose the reports and hit on the Financial option.
  • Then, navigate to the General Ledger.
  • Again, set the start and end dates the same as your bank reconciliation dates and the same as your payment due dates.
  • Choose the account and hit the OK tab.
  • Then, Search the balance towards the bottom of the page, on the final line. Here, you will get the final balance of your book.

Keep note: If the sum of these two is not equal, then an unsettled amount is the difference.

Or if the two sums are equal and you still encounter a discrepancy, this will indicate that the bank reconciliation table has some incorrect data, and you must reset the bank reconciliation table.

  • To approve an automatic general journal entry and resolve any type of outstanding issue, you may have to go to the following period.
  • The Sage does not encourage this method because you are not likely to postpone the resolution of the same.
  1. Problem in the future.
  2. defeated employing bank reconciliation.
  3. In case you thought to post and accept the automatic general journal entry, then you have to stop here right Away.
Unresolved is negative

This means that if the closing book balance exceeds the total of the ending outstanding + statement ending balance, it will indicate that the unresolved position is negative.

In summation, you will have three alternative options:

  • Balance after the sentence is too low.
  • If concluding book balance is positive.
  • The outstanding balance at the end of the month is too low.
The Unresolved is Positive

In the scenario, you will get three alternative options:

  • The excessive amount of money owed after a month.
  • Lastly, the book balance is insufficient.
  • The balance towards the end of the statement is excessive.
Conclusion!

Finally, we hope you were able to resolve the Sage 50 bank reconciliation error correctly. If you require extra information or expert assistance in addressing your issue, then do not hesitate to contact Sage 50 Support Number. Have customized solutions, quick tips, and tech-expert advice all under one roof. Achieve your objectives and propel your company up the success ladder by entrusting all of your accounting work to accounting specialists using Sage 50 software.

Mark James
Mark James

Being a tech enthusiast, I am Mark James, a highly experienced and professional writer with over 12 years of experience. My deep understanding and knowledge of software tools help me provide valuable insights and guidance to users across the globe. My passion for technology motivates me to stay updated with the latest advancements, which allows me to deliver the most relevant and updated information to my audience.

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