Finance Manual – Reconciliation

This is part of the manual for the Android Finance Application.

Account Reconciliation

Account reconciliation is the process of checking that the transactions recorded in Finance match the ones that show in your bank statement.

It is a useful process to follow, as it can

  • Highlight any fraudulent transactions that may have been entered against your account
  • Show any transactions you have missed
  • Ensure that the balance in Finance is correct

The actual process consists of checking off each transaction against the ones on your statement. As each transaction is checked off, it becomes cleared. A cleared transaction is one that appears on the bank statement.

As you complete the reconciliation process and have checked that transactions in Finance match the statement, you can finish the process and all cleared transactions are marked as reconciled.

In finance, only Accounts can be reconciled as these will generally have a statement of transactions from the bank or credit company.

Note: this feature is not available in the free version

Starting Reconciliation

To start the reconciliation process, navigate to the account transactions and press the ‘tick’ action button. This is shown in the screen shot below.

On earlier versions of Android, you may need to press the menu button to see this option. Alternatively, you can also long press on the account name when showing the list of accounts.

Once the reconciliation process has started, you will see the screen below:

This screen is asking you to enter the ‘amount to reconcile to’ which usually the closing balance which can be found from the statement, see below:

If you do not want to continue, then press the cancel button and it will exit the reconciliation process.

After entering the amount, press save to continue.

The Reconciliation Screen

The account reconciliation screen is shown below:

  1. These are the balances that used to reconcile the account
  2. These are the transactions that have not been reconciled
  3. Press a transaction to reconcile it. It will show a tick next to the transaction to indicate it is being reconciled

Previous Statement Balance. This is calculated by totalling all the reconciled transactions in the account. It must match the starting balance that is shown on the statement, otherwise you will not be able to reconcile the account correctly.

Current Statement Balance. This is the value that you have entered and matches the closing balance on the statement.

Outstanding Balance. This is the difference between the current statement and previous statement balances. As you reconcile transactions it will be updated to reflect the current outstanding balance.

Reconcile Options

As you reconcile the account, you may notice inconsistent or missing transactions. Long-pressing on a transaction gives you the following options:

  1. Force Reconcile. In the event that a transaction is showing that should have been reconciled against an older statement, then you can use this option to force that transaction to be reconciled. Note that this effects the previous statement balance and will cause it to be recalculated. It should not be necessary to use this facility in most cases.
  2. Edit. This allows you to modify the transaction to, for instance, correct a date or incorrectly entered balance.
  3. Delete. This allows you to delete a transaction
  4. Add. Press the ‘Add transaction’ action bar button to add a new transaction

Completing the Reconciliation

To complete the reconciliation process, the outstanding balance figure should be zero. When this happens, you will be automatically prompted with the following dialog:

  1. The outstanding balance is shown as zero, prompting you to complete the reconciliation process
  2. Press the Finish button to complete reconciliation. All cleared transaction will be marked as reconciled.
  3. Press the Continue button to continue the reconciliation process.

Once you have finished reconciling, you will be returned to the transactions screen. Note that each transaction will show the reconciled status, as shown below:

  1. The check icon next to a transaction indicates that this transaction has been reconciled
  2. The ‘C’ icon next to a transaction indicates that this transaction has been cleared. It is possible to leave the reconciliation process and return to it later. All transactions that have been cleared will remain cleared until the reconciliation process in complete.

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