Sage 50 Bank Reconciliation Discrepancy or Unresolved Amount in Sage 50

In today’s article, you will get all the details about Sage 50 Reconciliation. Generally, this error fixes the purpose for adjusting the capital that is displayed in the general record in a particular bank proclamation.

There must be a similarity made between the two respective parties to prohibit the blunders that are done. The methods can be compromised because of such blunders that display mistakes registered or noted in the organizational books or bank explanations.

What is Sage 50 Bank Reconciliation Discrepancy?

Sage 50 Bank Reconciliation Discrepancy is a type of program that is developed to assist accountants to locate and rectify several bank reconciliation errors in Sage that can arise due to tax preparation.

Generally speaking, bank reconciliation statements are financial documents that provide a summary of your bank account activity along with internally registered activities, showcasing that the two records are in sync with each other and can be utilized to settle the bank accounts.

In a book of accounts of an entity, reconciling a bank account balance with the money reported by the financial institution in the latest bank statement, is termed as bank reconciliation as per accounting standards. The difference between the two data must be discovered as early as possible and if needed it must be rectified.

What are the Causes of Sage 50 Bank Reconciliation Discrepancy?

The discrepancy may arise because of several reconciliation adjustments like Journal Entries or modified, deleted, or added reconciled transactions.

Some Important Points to Remember about Sage 50 Bank Reconciliation Discrepancy

Here are the important points to remember about Sage 50 Bank Reconciliations:

• The objective of bank reconciliation is to figure out whether the Bank Statements and account records are in agreement or not.
• Once an unsettled amount or a discrepancy has been noted, the needed time must be used to analyze the origin.
• There are no quick fixes or bank reconciliation analysis services through any Sage Consultant.
• It is not reasonable for Sage to analyze what entries must be displayed in the company’s books of account, or what kind of transactions must be reported to the bank statement.

How to Fix Bank Reconciliation Discrepancies or Unresolved Amount Errors in Sage 50?

Here are the steps to fix Bank Reconciliation Discrepancy or Unresolved Amount Errors in Sage 50:

Method 1: Recheck the Following Points

• You have added the wrong Statement Opening Balance, Statement Start Date, Statement Ending Balance, and Statement End Date.
• All the transactions in your particular bank account were registered in Sage 50.
• All the transactions have the right date.
• The transaction that gets displayed in your bank statement is cleared.
• Your particular bank account in Sage 50 has the appropriate book balance.
• If relevant, the bank fees are included in the Expense tab.
• If relevant, Gains (exchange, interest, errors) are included in the Income tab.
• The amount outstanding is the same as the unchecked items total in the Reconciliation screen
• In case they do not, then set the reconciliation again.

Method 2: You have a Discrepancy

Discrepancy = Opening Book Balance – (Opening Outstanding + Statement Opening Balance)

• In order to determine the opening outstanding amount, it is suggested to refer to the last period’s leftover outstanding value that is available at the end of your particular reconciliation.
• In case you are beginning your reconciliation for the very first time, in such a scenario the opening outstanding is equivalent to the total prior outstanding that has been added by you to the start date.
• In order to determine the value of the opening book balance:
  • Until the discrepancy is managed, the bank reconciliation cannot shift to the next period
  • You need to conduct the following comparison test in case any data is corrupted in your bank reconciliation only:
    • Is opening book balance equivalent to statement opening balance + opening outstanding
    • In case these two amounts are not equal, then the discrepancy amount is the difference. You need to move to step 4.
    • In case the two amounts are not equal, but there is still a discrepancy value, then there is some bad data in the reconciliation table. It is possible to reset the bank reconciliation to fix this issue.
• Search for the balance on the first line at the top. It is your opening balance.

Note: A discrepancy only handles transactions earlier than the start date of your present reconciliation period comprising the remaining outstanding from the last period.

• Press OK
• Choose the account
• Fix the Start date and the Finish date that must be the same as your bank reconciliation dates
• Choose Reports, General Ledger, Financials.

Discrepancy is Negative

It means the opening book balance is not more than the sum of the statement opening balance + opening outstanding.

• Here are the three likelihoods:
  • The Opening outstanding is Huge
  • The Opening Book Balance is too Less
  • The Statement Opening Balance is Huge

• Move to step 4

Discrepancy is Positive

It means the opening book balance is more than the total sum of the statement opening balance + opening outstanding.

• Hence, there are three possibilities:
  • The opening outstanding is too less
  • The opening book balance is too huge
  • The statement opening balance is too less
• Move to step 5

Method 3: There is a Discrepancy in the Opening Book Balance with the Trial Balance or Balance Sheet.

• Run Rebuilt in the particular Support Utilities. Please get in touch with Support for help in order to rebuild.
• See the Opening Book Balance in the Worksheet once more. Ensure it is in sync with the Balance Sheet or Trial Balance.
• See the discrepancy once more to check if it is right.

Method 4: There is an Unresolved Amount

Unresolved amount = Ending outstanding + Statement end balance – Ending book balance

The outstanding amount at the end of the bank reconciliation screen after reviewing everything is the ending outstanding. To determine the value of the ending book balance, follow the step given below:

• Choose Reports. Then click Financials and press General Ledger.
• Fix the Start Date and the Finish Date. The dates must be the same as the bank reconciliation dates
• Choose the account
• Press OK
• Search for the Balance at the end on the last line. It is your ending book balance.
• Conduct the following comparison test to check if there is data corruption in your bank reconciliation:
  • Is your ending outstanding and statement ending balance equivalent to your ending book balance?
  • In case the two amounts are not equivalent, then the difference amount is the unresolved amount. Move to step IV.
  • In case the two amounts are not equal but there is a discrepancy amount, then the bank reconciliation comprises some bad data and you will require to reset the bank reconciliation.

• In case there is an unresolved amount, you can shift to the next period after accepting an automated general journal entry.
  • This option is not suggested by Sage, Since you are postponing the same issues in the near future.
  • It also overthrows the need of using bank reconciliation
  • In case you wish to post and acknowledge the automated general journal entry, stop here.

Unresolved is Negative

It means the ending book balance is more than the total of the statement ending balance + ending outstanding.

• Here are three likelihoods:
  • The ending book balance is high
  • The ending outstanding is too less
  • The statement ending balance is too less
• Move to step 6

Unresolved is Positive

It means that the ending book balance is lower than the sum of the statement ending balance + ending outstanding.

• Here are the possibilities
  • The ending book balance is less
  • The ending outstanding is huge
  • The statement ending balance is huge
• Move to step 7

Method 5: Discrepancy is Negative

• Here are the potential reasons for each:
  • The opening book balance is too less
    • Some debit entries prior to the start date are missing
    • There are several credit entries prior to the start date
    • The statement start date is not right on the bank reconciliation screen
  • The opening outstanding is huge
    • There are several outstanding debit checks (general journal revenue checks or customer payment checks).
    • Primarily due to wrongly posted checks or dates or duplicate entries
    • Not adequate outstanding credit checks (payroll, payment, or general journal payment checks).
    • In case it is your first bank reconciliation for this account, then you have included several previous debt checks or not adequate previous credit checks.
    • The statement start date is not right on the bank reconciliation screen
  • The statement opening balance is huge
    • Even though it is rare, the bank statement has errors
    • The bank provided you with 3rd March to 30th March in place of 1st March to 30th March
    • Bank officials have made duplicate entries
    • Deposits happened by mistake from a different company to the bank account of your company
    • An error happened when adding the value in the screen for bank reconciliation as compared to your bank statement.
    • The previous period’s Statement End Balance is not right and not similar to the previous period’s bank statement end balance.
    • The start date of your statement is not wrong on the bank reconciliation screen
• You must locate which of the previous possibilities is right and which is wrong and the method of elimination is the best move.
  • Generally, the opening balance statement is right
  • Then the opening book balance that is too low remains or a huge opening outstanding remains.
  • Add the needed entries or make necessary adjustments after you have located the problem
    • The entry should precede the present period for bank reconciliation
    • You may require to reset your particular bank reconciliation after the entries are posted in case the discrepancy is the same.
• In case you have voided a payment or receipt but the credit note is not cleared where it must have, then you must clear the said credit note with the date voided in the receipt date.
• In case you have an unresolved amount, navigate to step 3 or stop here.

Method 6: Discrepancy is Positive

• Here are the likely reasons for each:
  • The opening books balance is very high
    • There are several debit entries prior the start date
    • The credit entries are missing prior the start date
    • The start date is incorrect on the particular bank reconciliation screen
• The opening outstanding is very less
  • There are not adequate outstanding debit checks (general journal revenue checks or customer payment checks).
  • Most probably because of wrongly posted check dates or identical entries
  • Several outstanding credit checks (payroll, payment, or general journal payment checks)
  • In case this is your first bank reconciliation for this particular account, then you may have included several previous credit checks or not adequate previous debit checks. In case an adjustment was for the opening book balance, this may require to be removed from previous outstanding transactions also, since the adjustment will be added in the discrepancy amount.
  • The statement start date is not right on the bank reconciliation screen
• The statement opening balance is too less
  • Even though it is rare, your bank statement has issues from your particular bank.
  • The bank provided your 3rd March to 30th March rather than March 1st to March 30th
  • Human errors in bank like duplicate entries
  • Charges incurred by mistake from a different company to the bank account of your company
  • An error happened while adding the amount in the bank reconciliation window as compared to your particular bank statement.
  • The previous period’s Statement End Balance is incorrect and not identical the prior period’s bank statement end balance
  • The statement start date is not right on the bank reconciliation screen
• You must determine which of the three likelihoods is right and which are not. The method of elimination is the best move.
  • Generally the statement opening balance is right
  • Then all that is remaining is either the opening book balance is huge or opening outstanding is too less.
• Make the right adjustment or entries after you have located the issue
  • The entry or the adjustment must come before the present bank reconciliation period
  • You may require to reset your bank reconciliation after the entries are posted, in case the discrepancy is same.
• In case you cancelled a payment or receipt but the credit note is not cleared, where it must have, then the credit note should be cleared with the date of the same voided receipt date.
• In case you have an unresolved amount, move to step 3 or stop here

Method 7: Unresolved is Negative

• Below are likely reasons for each:
  • The ending book balance is huge
    • There are several debit entries in this tenure
    • There are some entries missing in this particular period
    • An adjusted transaction happened where the deposit entry is checked, however, the matching withdrawal entry is not. For instance, the Reversed versus Adjustment entries when the option, Do not Show Corrections is unchecked.
    • A credit transactions has been voided from a prior period but its reverse debit entry is now displaying on this period.
    • An exchanging credit entry has to be added to switch the voided credit transactions to counterbalance the difference.
    • In case you feel this replacement credit entry must not exist, it means your books is lacking this credit entry from a previous date from the prior period. You will need to investigate further in the past.
    • Bank charges have not been registered for this period.
    • The statement end date is incorrect on the bank reconciliation screen.
  • The ending outstanding is very low.
    • Some outstanding debit checks are missing (general journal revenue checks or customer payment checks)
    • Primarily due to wrongly posted check dates or identical entries.
    • A few outstanding checks have an amount error, too big or too small.
    • Several outstanding credit checks like general journal payment checks or payroll and payment checks)
    • In case it is your very first bank reconciliation for a particular account, they you may have included several many previous credit checks or not adequate previous debit checks.
    • The statement end date is incorrect on the bank reconciliation screen
  • The statement ending balance is too less
    • Even though it is rare, your bank statement has issues from within the bank
    • Rather than March 1st to March 30th, the concerned bank provided you March 1st to April 3rd.
    • Bank has committed human mundane errors like duplicate entries.
    • Charge happened by fault from a different company to the bank account of your company
    • A mistake took place while adding the ending balance value in the window for bank reconciliation, in comparison to your particular bank account.
    • You must locate which of the three likelihood are right and which are wrong. The best approach is process by elimination.
    • Generally the statement ending balance is right
    • Then what is remaining is either the ending book balance is too huge or the ending outstanding is too less.
• Make the right adjustments or entries after you have locate the proble
  • The entry should be made in the current period of the bank reconciliation
  • You may require to reset your bank reconciliation after posting the entries if the unresolved does not change/
• In case you have voided a payment or receipt but the credit not is not cleared where you must have, then clear the credit note with the date for the same voided receipt.
• Stop here

Method 8: Unresolved is Positive

• Here are potential reasons for each:
  • The ending book balance is less:
    • There are several credit entries in this period
    • There are some entries missing debit in this period
    • An adjusted transaction happened where the withdrawal entry is squared however the identical deposit entry is not checked.
    • For instance, when the Do not show corrections is unchecked in the Reversed versus Adjustment entries
    • A debit transaction has been voided from a prior period however the reverse credit entry is now displaying on this period.
    • An exchanging debit entry has to be added to exchange the reverse debit transaction to counterweight the dissimilarity
    • If you perceive this voided debit entry must not occur, it means your books is lacking this debit entry from a previous date than the preceding period. You will have to probe in the past
    • Bank gains have not been registered
    • The statement end date is incorrect on the bank reconciliation screen
  • The ending outstanding is huge:
    • There are several outstanding debit checks (general journal revenue checks or customer payment checks)
    • Most probably because of wrongly posted check dates or identical entries
    • A few of the outstanding checks have an amount error (too big or too small)
    • Lacking outstanding credit checks (payroll, payment, or general journal payment checks)
    • In case it is your first bank reconciliation for this particular account, then you may have included several previous debit checks or not adequate prior credit checks
    • The statement end date is incorrect on the bank reconciliation screen
  • The statement ending balance is huge:
    • Even though it is very rare, your bank statement has issues from your bank:
    • The bank provided you with March 1st to April 3rd in place of March 1st to March 30th
    • Bank human errors such as identical entries
    • Deposits happened by fault from a different company to the bank account of your company
    • An error occurred while adding the ending balance amount in the bank reconciliation window in comparison to your particular bank statement
    • The statement end date is incorrect on the bank reconciliation screen
• You must locate which of the three likelihoods is right and which are wrong. Process by removal is the best move:
  • Generally, the statement ending balance is right
  • Then what is remaining is with either the ending book balance is hue or the ending outstanding is less
• Make the right adjustments after you have located the problem
  • The entry should be in the bank reconciliation present period
  • You may require to reset the bank reconciliation after placing the entries in case the unresolved is same
• In case a receipt or payment have been voided, however, the credit note is not cleared where it must have been, then the credit note must be clearedwith the same voided receipt date.

Hope this article has explained you everything about bank reconciliation discrepancy error or unresolved amount in Sage 50 error. If you still have issues concerning this topic, you can get in touch with our team of Sage experts.

---

Frequently Asked Questions