How to set Bank Reconciliation in Tally

Bank Reconciliation is the statement which use to match the company balance with Bank Balance.


Why bank reconciliation is important:


Example: On 1.4.2019 you got the cheque from the party and you made the received entry in tally on 1.4.2019 later you deposited the cheque into the bank then the bank will take 3 to 4 working days to clear your cheque, finally on 4.4.2019 your cheque cleared and the amount came into your bank account. It means the entry passed on 1.4.2019 but the bank effected on 4.4.19.


So here you need to reconcile the bank in tally with your actual bank statement.


Step: take the bank statement’s copy and open bank reconciliation window from GOT > Banking > Bank Reconciliation statement

In the bank reconciliation window, you just need to give the bank statement date in the “bank date column “of bank reconciliation.

In the above bank reconciliation window, you can see that the Bank date is empty where you need to give the bank statement date of the same transaction.

After the bank reconciliation entry will remove from window and effect will come in your “balance as per bank”.

At the bottom right-hand side, you get three things,

1 Bank as per company book: payment/receive entry done in tally.
2 Amount not reflected in bank: the amount which is pending to reconcile.
3 Balance as per bank: effects after reconciliation.

The reconciled transaction will remove from the reconciliation window if you want to see your reconciled transactions also then press F12 in the reconciliation window and make the option “show reconciled transaction yes”.

Note:
In the “bank reconciliation window” debit balance is your receipt amount and credit balance are your payment amount but in “bank statement” debit balance is your payment and credit balance is your receipt (Nominal Rules).