Bank Reconciliation Problem

I've used Sage 50 for a long time. I just set up a new company and entered my first set of journals. I did the first bank rec. and entered the open balance of $500.00 on the bank statement. All transactions were reconciled (no outstanding). However the opening balance shows up under Discrepancies and the Unresolved amount does not match the closing balance in the bank statement. What did I miss?

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  • Hi Cindy, thank you for your quick reply. I've used Sage 50 for years and with the other companies the Unresolved amount always match the closing bal. on the bank statement, and zero with Discrepancy. I wonder why it is different with this company?

  • Unresolved amount should match the positive of Statement End Balance.

  • The concept of "Unresovled" is to tell you that you still have not yet compared and checked off everything that is on the bank statement.  If you see the entry in Sage 50 on the bank statement, you check it off and it is now considered Resolved.

    When a bank rec is started in Sage 50, you enter the Start and End dates from the Bank Statement and the Start and and End Balances from the Bank Statement.  This way the program knows what your targets are and can tell you when you have succeeded.

    When it is completed properly there should be no Unresolved amount (=$0.00) and there should be no Discrepancy (=$0.00).

    I would think your current discrepancy is Prior Outstanding entries from a previous period that have not been added to the bank rec when you started.  Click on the Add Prior Outstanding button and add them in.  This is only required on the first bank rec that you complete in Sage 50.  It's probably the deposit of money you made in Dec to get your Jan opening balance.

  • Hello Richard, Thank you for your reply.

    I found out that the Open Balance of the bank accounts has to be entered during the Set Up stage. However even so at the first Bank Rec. the 'Statement Open Balance' field is still blank, which causes a bit of confusion.

    So, Open Bal of the bank accounts has to be entered twice - first at setup, and second at the first Bank Rec. If you only did the second and not the first, that amount would show up as discrepancy. I figured that out and everything has been working fine.

    Thank you for you help anyway.

  • Also, at the first Bank Rec. the familiar window where all the journal entries does not show up, until you click on Prior Outstanding, even though there is absolutely no prior outstanding transactions. I found out that one has to click on Prior Outstanding, does nothing, then that window will show up. I wonder why Sage 50 is designed that way?