Accounting > Reconciliation bank statements

With the reconciliation function electronic bank statements can be read.

This function can be started in the Bookkeeping menu> Financial> Electronic banking.

The function is only available for users with the right Reading bank statements.

To be able to use account recognition users need the right 'Maintain account recognition Bank statements'.

This screen should be empty unless previous bank statement files are read but not processed.

By activating the checkbox at 'Only accounts for current bookkeeping' the proposal will be limited to the current bookkeeping.

By activating the checkbox at 'Process all .XML files in folder of selected file' all CAMT-053 files in the selected folder are read.

Format daily statements

Daily statements can be downloaded in many electronic formats. Mill7 supports the formats MT940, MT940 structured and CAMT.053.

All downloads in the format MT940 structured can also be imported with the option MT940.

Please inform at your bank if you do not have these options.

Other formats can be added by Millogic as a custom-made product.

Terms for reading in transactions:

–Transactions with a book date outside of the start and end date of a bookkeeping will not be imported.

–Transactions with a bank account not found in Mill7 will not be processed. The bank account must be entered at a bank daybook.

–Transactions for a bookkeeping that cannot be opened (reading rights) will not be read in.

–Transactions for a bookkeeping that can be opened but can not be changed (writing rights) will be read in but can not be processed in the bookkeeping.

Although MT940 seems a standard format, there are differences between the MT940 used by different banks.The functionality is tested for ABN-AMRO Bank, ING Bank and Rabobank

Bank accounts

The bank account and the currency of a transaction determine in which daybook and in which bookkeeping the journal entry is booked.

The fields bank account and currency must be entered in the corresponding bank daybooks.

Furthermore, it is necessary to indicate in the bank daybooks whether transactions should be entered in daily or monthly daybook pages.

Bookkeepings

An import file can contain transactions for several bank accounts and in different bookkeepings.

To be able to process transactions for a bookkeeping, the user needs to have access to this bookkeeping and the right to make changes in it.

File

Choose the file to be reconciliated.

This file may contain bank transactions for multiple bank accounts and multiple bookkeepings.

All validated transactions in the file will be booked in bank daybooks only.

Account unknown

This account is used whe by using account recognition no other account is found.

While reading the journals, the journals will be booked standard to account unknown.

Make sure that this account exists in all bookkeepings where journals will created.

When this general ledger is a cost type account there will be NO cost centre filled in the journals for this account while processing the bank transactions.

Proposal

By pressing the 'proposal' button a review is made that shows the number of journals per bookkeeping.

Also will be indicated in what bookkeeping the journal entries will be processed and what the opening- and closing balances are after processing the journals.

Check, if needed, the final balance with the concerning date.

Default all journals are presented with the account number entered at account unknown unless an other general ledger, debtor or creditor is detected by using account recognition.

In column process, the checkbox must be activated if the journals for the concerning bank account must be processed.

- Journals from which no bank account can be found in Mill7, will not be read and will not be displayed on the proposal.

- Journals for a bookkeeping that may not be opened, will not be read and will not be displayed on the proposal.

Account recognition

Mill7 contains a function to recognize the General ledger for transactions based on a description.

The description and the general ledger are saved in the account recognition table.

For each bookkeeping the table to be used can be set in the settings.

Account recognition functions are only available for users with the financial right 'Maintain account recognition Bank statements'.

The account recognition table can be maintained in three ways:

–through menu Maintenance> Financial> Recognition Bank transactions

–during reading bank statements by the button <Account recognition> or the button <Recognize current line>

–In the book screen by changing the account in a journal booked on the the account unknown.

With the button <Account recognition> all bank statements with general ledger equal to account unknown can be checked and configured to be recognized for the next reconciliation.

Recognize transaction by text:

This identifies the unique description for this transaction.

By selecting a line in the information container 'Description transaction' this line will be copied to 'Recognize transaction by text:' where it can be altered.

Book transaction on account:

This is the general ledger for the transaction to use in the journal.

For example: the general ledger is 2100 and at Recognize transaction by text the text "income tax" is entered. From now on all transactions with this text in their description will be booked on general ledger 2100.

Cost centre

When the general ledger is a cost type account a cost centre must be entered.

With the button <Recognize current line> the "Account recognition" screen will open showing the line used for the selected transaction.

<Next>

With the button <Next> the next transaction with account unknown will be shown.

This entrance will be saved for recognition in next processes.

The process of account recognition still proceeds to execute the changes made in recognition lines through other bank transactions when necessary.

Outstanding Invoices

When during account recognition a transaction is determined as a transaction for a debtor or creditor, Mill7 will try to find the correct invoice number based on the amount.
When this fails the journal will be booked with document number 99999999.
A remark will show in the proposal in column Status.

After processing the journal can be changed in the Book screen.

The correct document number can be entered here or the payment can be split to several document numbers by using Ctrl+W.

Processing file

In the 'Process" column of the reconciliation proposal can be indicated if a transactions should be booked.

Select the bank account to be processed by checking the column "Process".

The column Status in the proposal shows 'OK' or a message.

Transactions with message 'cost centre not found ' are processed but without a cost centre.

By pressing the button 'Process' journals will be processed in the concerning bookkeeping.

VAT

If VAT must be calculated for a journal with a general ledger different than Account unknown, a default VAT-code must be entered for this general ledger.

When the VAT Type On purchases / On sales does not match with the amount Debit / Credit, Mill7 will search for a correct VAT with the same %.