Record to report / R2R – Reconciliations

Bank

We elaborated on a few items constituting a reconciliation.

Let us look at the rest:

  • Interest credits received but not informed to accounting – Interest credits and certain charges reversals may be credited by the bankers, which will come to light only when a bank statement is compared with the accounting entries. The accounting will pass entries for the same. Also in some cases, for recurring items, automated credits may be triggered in the ERP systems.
  • Amounts credited by bank to some other customer’s account – This is an interesting one, and a little difficult to identify. Your accounting department would need to struggle a bit, if you did not get credit for a check / cheque deposited. The impression would be that this has not yet been cleared. Though rate, this does happen, especially if there is another customer of the bank with a similar name. Account number differences / typos also play a role here.
  • Charges of other accounts debited to your client’s account – This is again very similar to the above item, mainly arising out of typos.

There will surely be more types, and we welcome readers to share these through the comment link.

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