Automatic Bank Reconciliation

Navigate to Operations > General Ledger > Bank Reconciliation, then select a Reconciliation ID from the grid

Automatic reconciliation is only available once you establish a bank connection under Module Setup > Connect to Financial Institution. Use this form to balance the unmatched withdrawals and deposits, verify the matched withdrawals and deposits, and correct other suspense items.

Bank Reconciliation Summary

The top section displays a summary of the totals included in the reconciliation.

Bank Statement Balance: The ending balance you entered from your bank statement when you added a new reconciliation. MIP uses this amount to calculate the Unreconciled Difference. You can update this value by selecting the balance and entering a new amount. Note that balances in locked reconciliations cannot be edited.
Balance Per Books: A system-generated value - MIP calculates the cash account's general ledger balance automatically as of the Statement Ending Date.
Bank Feed Start Date: The starting date for cleared transactions to pull in from the bank connection. These transactions will be compared to uncleared transactions in MIP to assist with the bank reconciliation process. You can update this value by selecting the start date and entering a new one. Note that dates in locked reconciliations cannot be edited.
Reconciled Bank Balance: The bank balance after accounting for all cleared items during the reconciliation process. This total updates automatically as you clear items. When all items are properly cleared, this should match the Bank Statement Balance.
Unreconciled Difference: The difference between the Reconciled Bank Balance and the Balance Per Books. This total automatically updates as you clear items. Your cash account is fully reconciled when the Unreconciled Difference is $0.00. A large difference indicates that items may be missing, incorrectly recorded, or not yet cleared.

Reconcile Items

Use the following tabs to complete the bank reconciliation process.

Unmatched Withdrawals
Matched Withdrawals
Unmatched Deposits
Matched Deposits
Suspense Items
All MIP Items

The Unmatched Withdrawals displays withdrawals within the selected bank reconciliation date range that could not be automatically matched. From this tab, you can manually match withdrawals. Once a withdrawal is matched, it moves to the Matched Withdrawals tab to be reviewed and cleared.

The goal is to find an exact amount match between the bank transaction and the MIP item. If multiple items share the same amount, you can use additional attributes - such as the transaction date - to determine the correct match.

Note: Bank statement transactions are added to MIP directly from your organization’s connected bank and account. Because weekends and bank holidays are included, the Transaction Date may differ from the Document Date.

The Matched Withdrawals tab displays withdrawals within the selected date range that were either automatically matched or manually matched from the Unmatched Withdrawals tab.

From this tab, you can review and finalize matches:

Accept - Confirms the match and clears the item from the bank reconciliation.
Reject - Rejects the match and returns the item to the Unmatched Withdrawals tab for further review.

The Unmatched Deposits displays deposits within the selected bank reconciliation date range that could not be automatically matched. From this tab, you can manually match deposits. Once a deposit is matched, it moves to the Matched Deposits tab to be reviewed and cleared.

Select a Deposit Number to view specific details for the deposit.

The Matched Deposits tab displays deposits within the selected date range that were either automatically matched or manually matched from the Unmatched Deposits tab.

From this tab, you can review and finalize matches:

Accept - Confirms the match and clears the item from the bank reconciliation.
Reject - Rejects the match and returns the item to the Unmatched Deposits tab for further review.

Select a Deposit Number to view specific details for the deposit.

Use the Suspense Items tab to manually add or delete suspense items. These are reconciling items that typically aren’t recorded as transactions - for example, a bank error. Since these items affect reconciliation but not your general ledger, they should only be entered here, not as actual transactions.

Once the issue is resolved in a future reconciliation period and the item is no longer causing a difference, you can manually delete it from this tab.

Note: A suspense item cannot be entered or deleted under a locked reconciliation. You must first unlock the associated Reconciliation ID.

The All MIP Items tab consolidates all transactions from each individual tab, allowing you to view a complete list in one place.

Run Your Report

Select Run Report to export the Reconciliation Report. You can choose to run either a Detail Report or a Summary Report based on the reconciliation data. This report serves as your historical record of the reconciliation.

When you run the report, it is added to the Report Queue at the bottom of the MIP window. You can continue working in other areas of MIP while the report generates. Once complete, the report is available as a downloadable file.

Best Practices

If additional activity is entered after a reconciliation period is completed - and the reconciliation is not locked - the reconciliation results can change. This means the original reconciliation trail may be lost.

To preserve an audit trail and demonstrate that the account was reconciled at a specific point in time, we recommend the following best practices:

Run and save the Reconciliation Report (print or store a copy)
Lock the reconciliation once it is complete
Update entry date restrictions to prevent posting activity into the reconciled period (Organization Settings > Preferences > Entry Dates > Prohibit)
Locking the reconciliation protects it from changes and provides evidence that the account was reconciled accurately at that time

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