Sage is the widely used accounting software that helps manage the accounting and finance-related tasks of the business. Also, it offers a bank reconciliation feature that allows users to tally the closing amount on Sage with the closing amount on the bank statement.
Moreover, this feature ensures that your bank account balance matches your accounts. But at times, users might encounter Sage 50 bank reconciliation discrepancy when the users find differences in the amounts while reconciling the accounts. However, it is essential to resolve the issue at its earliest so that you can resume your work without any inconvenience.
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Essential Points You Must be Aware of Sage 50 Bank Reconciliation Discrepancy
1. The main purpose of accessing the bank reconciliation is to recognize whether your bank statements and accounts records are in agreement.
2. You can’t avail of the bank reconciliation analysis services. Moreover, there are no quick fixes available through the Sage consultant.
3. Once you encounter any discrepancy or an unsettled amount, you must spend the required time to find the root cause.
4. Moreover, the Sage accounting software needs help figuring out which entries must be included within the company’s books. Also, it doesn’t mention which transactions you must include within the bank’s account.
Probable Root Causes That May Trigger Sage 50 Bank Reconciliation Discrepancy
There are multiple factors that may lead to the Sage 50 Bank Reconciliation discrepancy. So, to resolve this issue, it is essential to evaluate the root cause. To let you know about all of them, we have discussed some of them below.
1. You may find some discrepancies between the end balance of your bank statement and the books of accounts.
2. Sometimes, it may occur when you have stored the bank reconciliation with the earlier date.
3. In other instances, it may appear when reconciliation did earlier was stored with some different amount.
4. Also, it may occur when some transactions consist of a wrong date.
Also Read: Sage 100 ERP Error 65
Learn Some Easy Tips to Deal with Reconciliation Discrepancy in Sage 50
We understand that it gets quite frustrating for the users when they encounter issues while reconciling Sage 50 bank accounts.
Solution #1. Review the items mentioned below.
1. First of all, you must verify that you have added the following details appropriately:
1. Opening Balance Statement Ending
2. Balance Statement Opening
3. The ending date of the statement.
4. Balance Statement is the beginning date of the statement.
2. Afterwards, verify that the correct dates are mentioned in the transactions.
3. Moreover, review that you have winded up with clearing the transactions that reflect on your bank account statement.
4. Also, you must verify that the book balance of the bank account is associated with Sage 50.
5. The outstanding amount is similar to the sum of all the unchecked items displayed on the Reconciliation window.
6. You must verify if you have linked the bank fees and other profits in the column of expenses and incomes.
Solution #2. If you are receiving a discrepancy bank reconciliation will not post an error.
1. To compute the discrepancy, you have to apply the formulae as follows:
2. Discrepancy = opening balance – (opening outstandings + statement opening balance).
3. To find out the outstanding opening values, you must consider the previous year’s remaining outstanding sum of the reconciliation.
4. For performing reconciliation for the first time, your opening outstanding will be similar to your previous year’s outstanding, as you mentioned before the start date.
Go through the instructions listed below to resolve the opening book balance value.
1. You must resolve the bank reconciliation discrepancy to move further.
2. If you found any data discrepancy within the bank reconciliation, implement the below comparisons.
3. The balance that comes up on the top is the opening account balance.
4. Once you get the opening balance, select OK and pick the account.
5. Now, you have to make adjustments to the starting and ending dates. You must verify that it must be similar to the bank reconciliation dates.
6. Finally, opt for the Reports option and select Financials, followed by General Ledger.
What should you do when you see discrepancy is Negative in Sage 50?
At times, users might experience that the discrepancy is negative in Sage 50 when there is too low opening book balance. In other instances, it may occur when the opening balance is too high. To deal with the negative balance amount in Sage 50, implement the steps listed below.
1. You must see if there are any missing entries in the starting dates, vast credit entries, and the starting date of the statement are inappropriate.
2. Also, you must look for the ideal reasons and do the necessary adjustments.
3. For instance, if you have cleared a receipt, don’t void a credit. In that scenario, you have to clear them.
4. There might be many instances when you get many outstanding debit cheques, wrong posted cheque dates, or duplicates. Also, you might see many human mistakes, inappropriate statement end balances, or banking errors.
Ending Words!!
So, here we conclude this post and assure you that the resolution methods discussed above will help you handle the Sage 50 bank reconciliation discrepancy. However, if you still find any discrepancies while doing bank reconciliation, contact our experts through live chat. You will get quick fixes to rectify the issue as soon as possible.
