Checkbook Reconciliation in Client Bookkeeping Solution

CLIENT BOOKKEEPING SOLUTION CHECKWRITER™

Checkbook Reconciliation

version 2007.x.x

TL 18210 (05/21/09)

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Contents

Introduction............................................................................................................... 1 
CBS checkbook reconciliation features...............................................................................1 
Reconcile Transactions window ..........................................................................................1 
Checkbook Transactions tab ..........................................................................................2 
Summary tab ..................................................................................................................4 
Statement Transactions tab............................................................................................5 
Unmatched Statement Transactions tab ........................................................................6 

Manual Checkbook Reconciliation......................................................................... 7 
Reconciling your CBS checkbook against a bank statement ..............................................7 
Adding transactions to a CBS checkbook during checkbook reconciliation ........................8 

Automatic Checkbook Reconciliation.................................................................. 11 
Setting up a CBS checkbook for online banking (optional) ...............................................11 
Validating a CBS checkbook .............................................................................................13 
Using the Quick Clear wizard ............................................................................................13 
Resolving unmatched transactions...............................................................................15 
Entering transaction data from a paper statement........................................................16 
Retrieving transactions via direct connection ....................................................................18 
Resolving duplicate transactions.......................................................................................20 
Downloading a file.............................................................................................................21 

Transaction Details ................................................................................................ 23 
Entering detailed transaction information ..........................................................................23 
Viewing detailed transaction information ...........................................................................24 

Other Checkbook Reconciliation Dialogs............................................................ 27 
Reconciliation Detail Options ............................................................................................27 
Filter Reconciliation...........................................................................................................28 

Checkbook Reconciliation in Client Bookkeeping Solution iii

Contents

Clear Check Range...........................................................................................................29 

Checkbook Reconciliation Report........................................................................ 31 
Printing the Checkbook Reconciliation report....................................................................31 
Out-of-balance reconciliation.............................................................................................32 

iv Checkbook Reconciliation in Client Bookkeeping Solution

Introduction

If your accountant has enabled the checkbook reconciliation feature for your Client
Bookkeeping Solution® (CBS) software, you can reconcile your checkbook(s) in
CBS — either manually, using a bank statement, or automatically, using the CBS
online banking feature. CBS allows you to take advantage of many of the online
banking services offered by your financial institution. Please check with your
financial institution for information on the online banking services available to you.

CBS checkbook reconciliation features

Using the checkbook reconciliation features, you can use your CBS software to:

ƒ Automatically display all uncleared checks, deposits, and other bank items
entered in CBS.

ƒ Mark checks, deposits, and other bank items to clear, individually or in groups.

ƒ Quickly open the Checkbook window to add or edit a check, deposit, or other
bank item to include as part of the current reconciliation.

ƒ Continuously update the cleared-items balance as you mark items that have
cleared through the bank.

ƒ Save partially completed reconciliation information to finish at a later time. (CBS
uses a C to denote tentatively cleared items — that is, items marked as cleared
for a reconciliation that has not yet been finalized — in the Register listview of
the Checkbook data-entry window.)

ƒ Create an automatic adjustment if you are unable to reconcile your checkbook
balance with the ending balance shown on the statement.

Reconcile Transactions window

In CBS, most of the checkbook reconciliation tasks are done in the Reconcile
Transactions window. The Reconcile Transactions window consists of four tabbed
pages — Checkbook Transactions, Summary, Statement Transactions, and
Unmatched Statement Transactions. The Statement Transactions dialog is

Checkbook Reconciliation in Client Bookkeeping Solution 1

Introduction

available only when you have entered or downloaded transactions from your
financial institution. The Unmatched Statement Transactions tab is available only
after you have retrieved transactions for this reconciliation.

To open the Reconcile Transactions window, choose Checkbook / Reconcile
and then choose the CBS checkbook you want to reconcile.

Checkbook Transactions tab

The Checkbook Transactions tab lists the transactions entered in CBS for the
selected account. You can mark any transaction as cleared in this list. As you clear
transactions, the program calculates the cleared amounts and the unreconciled
differences.
CBS sorts the transactions listed in the Checkbook transactions list by the Check #
and then by the Date. You can change the sort order by clicking the column heading
associated with the column by which you would like to sort the list.

2 Checkbook Reconciliation in Client Bookkeeping Solution

Introduction

View group box
Use the options in the View group box to choose the format in which to view the
transactions in the Checkbook transactions list.

ƒ If you choose the Totals option, the program displays the description entered in
the Description or Payee fields in the Checkbook window. Each transaction is
displayed on a single line.

Note: If your accountant has enabled the direct deposit feature for your CBS
software, the program lists the paper portion (if any) of a check separately from
the direct deposit portion.

ƒ If you choose the Details option, the program displays any additional detail
information entered in the Details dialogs associated with the transaction. You
can view these details in any of the windows or dialogs listed below. Each
component of each transaction is displayed on a separate line.

ƒ Details tab of the Checkbook data-entry window (for Check, Deposit, Other
Payment, Other Deposit types)

ƒ Check listing of direct deposit amounts

For additional information on transaction details, refer to the Transaction Details
section starting on page 23 of this document.

Statement reconciliation grid
The first time you reconcile a checkbook, you can enter the statement ending date
in the Statement reconciliation grid at the bottom of the tabbed page. CBS uses
this date to calculate the statement beginning date by using the first day of that
month.

Go to item button
You can highlight a transaction and click the Go to item button to have CBS open
that transaction record in the Checkbook data-entry window. You can then view
and/or edit the transaction detail.

When you click the Go to item button for an accounts receivable deposit
transaction, CBS opens that deposit record in the Checkbook data-entry window.
Click the Details tab, and then click the jump to record button to view the deposit
record in the Deposits window.

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Introduction

Summary tab

The Summary tab displays a summary of the current checkbook reconciliation. On
this tabbed page, you can enter the opening and ending balances, the opening and
ending dates, and the total amount in checks and deposits from your statement. As
you clear transactions, CBS dynamically calculates and displays various checkbook
amounts and the unreconciled difference.

If this is a new checking account, CBS sets the statement ending date to the last
day of the month before the first export date and the statement beginning date to
one month before the statement ending date. The first time you reconcile a
checkbook, you can enter the statement ending date in the Statement reconciliation
grid. CBS uses this date for the statement beginning date by using the first day of
that month or by incrementing it by one month.

Note: CBS displays the amount in the Calculated Amount field in the Ending
Balance group box only after bank transactions are available. This amount
represents the opening balance +/- any cleared bank transaction amounts.

4 Checkbook Reconciliation in Client Bookkeeping Solution

Introduction

Statement Transactions tab

This tabbed page is available only if you have entered or downloaded transactions
from your financial institution. It lists the transactions from your bank statement.
CBS obtains these transactions from one of the following sources:

ƒ Direct connection to your financial institution’s computers.

ƒ Imported data file in any of the following formats that you manually download
from your financial institution: Open Financial Exchange (OFX), Quicken Open
Financial Exchange (QFX), Microsoft Money, Quicken version 2001 and higher,
or QuickBooks version 2001 and higher.

ƒ Transactions manually entered in the Enter Statement Transactions dialog
(during a Quick Clear procedure). The source of these transactions is usually a
hardcopy statement from your financial institution.

You can click the Detail button to open the Statement Transaction Detail dialog,
where you can view the CBS checkbook register transaction(s) to which the
highlighted transaction is matched. You can click the Print button to print the
transactions listed on this tabbed page.

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Introduction

Unmatched Statement Transactions tab

This tabbed page is available only if there are unmatched transactions. It lists
transactions from your statement that have not yet been cleared.

You can click the Delete button to delete the highlighted transactions from this
tabbed page. The program does not delete the transaction from the CBS
checkbook.
You can click the Print button to print the transactions listed on this tabbed page.

6 Checkbook Reconciliation in Client Bookkeeping Solution

Manual Checkbook Reconciliation

You can use CBS to reconcile your CBS checkbook balance against a bank
statement.

Reconciling your CBS checkbook against a bank statement

1. Choose Checkbook / Reconcile and then choose the checkbook you want to
reconcile.

2. If this is the first time you have reconciled this checkbook in CBS, enter the
Statement opening balance, Statement ending balance, and Statement end
date from your bank statement on the Checkbook Transactions tab of the
Reconcile Transactions window. For each subsequent reconciliation, the
program uses the ending balance of the most recently finalized reconciliation as
the opening balance.

3. In the Reconcile Transactions window, double-click each item that appears on
the statement to mark it as cleared. To unmark an item, double-click it again.
(To clear several items at once, press and hold the CTRL key while clicking
items. To clear a range of checks, choose Edit / Clear Check Range and
specify the check range(s) you want to clear.)

You can also use the arrow keys to highlight an item and then press C or the
spacebar on your keyboard to mark it as cleared, or press U to mark it as not
yet cleared.

4. As you mark each cleared item, verify that its amount matches the amount
shown on the bank statement.

5. To add any bank service charges or interest income, or if you find an item on
your bank statement that you forgot to record in CBS, click the Add button to
open the Add Transactions to Checkbook window.

6. If you want to correct an item listed in the Reconcile Transactions window,
highlight the item and click the Go to item button. (In most cases you will need
to void or delete the transaction and then re-enter the item.)

7. Click the Save button to discontinue this reconciliation and return to it at a later
time. CBS will save all of the information you have entered to this point. You
can print a report of your reconciliation work in progress by choosing File /

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Manual Checkbook Reconciliation

Queue Reports and clicking the Options button associated with the Checkbook
Reconciliation report on the CheckWriter tab. In the Checkbook Reconciliation
options dialog, choose the Current work in progress report type.

8. After you have marked all checkbook items that appear on the current
statement and the cleared balance equals the statement ending balance, the
reconciliation is complete. Click the Finalize button.

9. Print one or more copies of the Checkbook Reconciliation report to retain for
your files.

Adding transactions to a CBS checkbook during checkbook
reconciliation

Use the Add Transactions to Checkbook window to add the following types of
transactions to the CBS checkbook register:
ƒ Historical In Transit, Other Item. You must enter the amount with the

appropriate sign (positive or negative). CBS will increase the checkbook
balance by all positive amounts and decrease the balance by all negative
amounts.

CBS does not export any Historical, In Transit transactions, nor does it add
Historical In Transit transactions to any CBS checkbook register at any time.
These transactions are used for checkbook reconciliation only and are typically
used to correct or enter outstanding transactions from a previous reconciliation
that was not finalized in CBS.
ƒ Check, Employee. You must click the icon for each PayCheck check to
enter additional information for the paycheck. You do not need to click the
icon to create a noncalculating paycheck. For a noncalculating paycheck, the
program will distribute the full amount to the first distribution line.

The checkbook setup determines which employees will be available in the
Description drop-down list. If the checkbook is set up for CBS PayCheck,™ only
the PayCheck employees will be listed. If the checkbook is not set up for CBS
PayCheck, only the NCP employees will be listed.
ƒ Other Item, Pmt for Vendor. If you are licensed for the optional CBS Accounts
Payable module, CBS will create the transaction as a cash payment in CBS
Accounts Payable.
ƒ Check, Vendor. If you are licensed for the optional CBS Accounts Payable
module, CBS will create the transaction as a prepayment in CBS Accounts
Payable.
ƒ All interest income and bank service fees should be entered in this window. To
add an interest income transaction, select the Other item, Deposit type for the
transaction. To add a bank service fee transaction, select the Other item,
Payments type for the transaction.

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Manual Checkbook Reconciliation

Follow these steps to add transactions to the selected checkbook.

1. In the Reconcile Transactions window, click the Add button.

2. In the Add Transactions to Checkbook window, select the type of transaction to
add from the drop-down list in the Type column.

3. Select or enter the applicable description from the Description drop-down list.
The descriptions available in the drop-down list depend on the transaction type;
all memorized transactions of the type selected are available.

4. Enter the transaction date in the Date column.

5. If this is a check, enter the check number in the Check # - Bank Type column.

6. Enter the transaction amount in the Amount column.

7. If this is a recurring transaction, select the type of recurring transaction
(Recurring or Recurring with Amount). A recurring transaction will be added the
next time you start a new reconciliation after a checkbook reconciliation has
been finalized for this checkbook. The program does not carry forward this
amount. To save the amount, select Recurring with Amount.

8. Click the icon to save the record (if CBS has enough information to create
the transaction) or click the icon to open the transaction record in the
appropriate data-entry window so that you can enter any additional information
and save the record.

Notes

ƒ The icon will be available for any transaction (except Historical In Transit
transactions or AP vendor transactions) that can be modified in the
Checkbook data-entry window. CBS does not allow you to enter or edit
distributions or details for unapplied AP payments.

ƒ If you add transactions from your bank statement that are specific to Form
1099 vendors, you must select Check, Vendor or Other Item, Pmt for
Vendor AP from the Type drop-down list. The icon is not available for

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Manual Checkbook Reconciliation

vendor checks (if licensed for CBS Accounts Payable). If you select Other
Item, Pmt for Vendor AP and then click the icon, CBS opens the
Checkbook window and creates an Other Payment type transaction. If you
click the button for the Other Item transaction, CBS will create an
accounts payable transaction.
ƒ If you add transactions that are specific to employees, you must select
Check, Employee from the Type drop-down list. By default, CBS uses the
net-to-gross method to calculate paycheck amounts, based on the check
amount you enter for CBS PayCheck transactions. When you click the
button, CBS opens the Net to Gross dialog. Click Cancel to close the
dialog, and then enter the paycheck amount in the PayChecks window.
ƒ The Memorize New Transactions and Update Memorized Transactions
options (on the General tab of the Utilities / Options dialog) do not apply to
this window. CBS will not memorize any transactions added in this window.
Existing memorized transactions are available for selection in this dialog,
but CBS will not update the original memorized transaction with any
changes you make in this window. If, however, you click the icon and
save the transaction in the applicable data-entry window, CBS will
memorize or update the transaction as usual. If the default PayCheck
frequency is different from the frequency for the selected employee, CBS
prompts you to change the frequency.

9. If you have added multiple transactions without saving them individually (by
clicking the Create record button), click the Create All button to add all
transactions (except Historical In Transit transactions, which CBS adds to the
Checkbook Transactions tab only) to the CBS checkbook register.
If any transactions remain in this window after you click the Create All button,
you must enter additional information about each of the remaining transactions.
Click the icon associated with each remaining transaction to open the record
in the appropriate data-entry window, and then enter the additional information
and save the transaction record.
Note: If you add an historical item in error, highlight that item in the Checkbook
Transactions list and choose Edit / Delete ‘In Transit’ Transaction.

10. Click the Done button to close the Add Transactions to Checkbook window and
return to the Reconcile Transactions window.

10 Checkbook Reconciliation in Client Bookkeeping Solution

Automatic Checkbook Reconciliation

If your financial institution allows you to download transaction data to a file or to
access your bank transactions electronically through online banking, CBS can read
these transactions and use them to reconcile your account. If you do not have
access to your account transactions electronically, you can manually enter the
transactions from your statement, as described in Chapter 2 of this document.

Setting up a CBS checkbook for online banking (optional)

Before you can retrieve data from your financial institution to use for checkbook
reconciliation, you must first set up your CBS checkbook to access this information.
If you will be retrieving transactions from a downloaded file, you do not need to do
these setup steps.

1. Choose Checkbook / Setup.

2. Enter the name of the checkbook you want to set up or select an existing
checkbook from the drop-down list in the Checkbook description field.

3. Enter the general checkbook information on the General tab. See the CBS help
topics for detailed information on the fields on the General tab.

4. Click the Financial Institution Information tab.

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Automatic Checkbook Reconciliation

5. On the Financial Institution Information tab, select the financial institution with
which you established this account. The drop-down list includes all financial
institutions assigned to other CBS checkbooks. The list will be empty the first
time you enter data on this tab for this checkbook. If the drop-down list is empty,
click the Update list button and then select the appropriate financial institution
from the list of financial institutions that support online banking for CBS.

6. Enter your Bank user ID assigned to you by the financial institution. If you do
not know your user ID, contact your financial institution to request an ID that will
allow you to access your account(s) online.
Note: The user ID and PIN you use for online banking may or may not be the
same as that used to access your account on the financial institution’s web site.
If you have difficulty accessing your account due to issues with your login
credentials, please contact your financial institution for assistance.

7. Enter the appropriate account ID in the CBS checkbook account ID field. By
default, CBS uses the account number you entered on the General tab of the
Checkbook Setup window. Your bank may append additional digits to the
beginning or end of this account number to identify the type of account. Enter
the assigned number in this field, but do not change the account number on the
General tab.

8. (Optional) Mark the Prompt when duplicate transactions are retrieved
checkbox to have the program to prompt you when it encounters any
transactions with the same check number and amount as a previously retrieved
transaction. You will have the option to skip the transaction, skip all duplicate
transactions, add the transaction to the CBS checkbook register, add all

12 Checkbook Reconciliation in Client Bookkeeping Solution

Automatic Checkbook Reconciliation

duplicate transactions to the CBS checkbook register, or quit (stop the data
transfer).

9. You can validate the checkbook at this time or wait until you are ready to view
the transaction information from your financial institution. When you validate a
checkbook, CBS sends your user ID and personal identification number (PIN) to
the financial institution to verify that it can access your account information. See
the “Validating a CBS checkbook” section below for details.

Note: Your financial institution may use different formats for the routing numbers
printed on a MICR-encoded check and for the online banking account access.
Therefore, CBS allows you to enter different routing numbers on the General tab
and the Financial Institution tab.

Validating a CBS checkbook

CBS uses information you entered on the Financial Institution Information tab of the
Checkbook / Setup window to obtain your account information from your financial
institution. When you attempt to access your account information, CBS validates
this information by sending your user ID and personal identification number (PIN) to
the financial institution.

1. On the Financial Institution information tab of the Checkbook Setup window,
click the Validate button.

2. In the Enter FI Information dialog, verify the account information and enter your
personal identification number (PIN). Click the Submit button.

Notes

ƒ CBS does not store your PIN, so you will need to enter it every time you
access your financial institution data from CBS.

ƒ When retrieving a file, if the file includes transactions for multiple accounts,
CBS will prompt you to select the correct account.

ƒ If you enter an incorrect account ID in the New checkbook’s account ID field
or leave it blank, the program will display a list of your accounts (if your
financial institution supports this feature). Select the account you want to
view and click OK to return to the Enter FI Information dialog.

3. When CBS successfully connects to your financial institution, it will display a
message prompt. Click OK.

Using the Quick Clear wizard

A Quick Clear wizard is available from the Reconcile Transactions window in CBS.
Through the Quick Clear wizard, CBS automatically matches the bank transactions
with the transactions in the CBS checkbook register based on check number and
amount.

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Automatic Checkbook Reconciliation

1. Choose Checkbook / Reconcile and then choose the checkbook you want to
reconcile.

2. In the Reconcile Transactions window, click the Begin button in the Quick Clear
group box.

3. In the Select Banking Activity dialog, choose the source of your financial
institution transactions.

ƒ Click the Online button to access your transactions directly from your
financial institution’s computer. If CBS cannot access your financial
institution’s servers, it will open the financial institution’s website in your
web browser. You can then log in and retrieve your transaction information.

ƒ Click the Retrieve from file button to have CBS read the transaction data
from a file you have already downloaded from your financial institution.

ƒ Click the Paper Statement button to open the Enter Statement
Transactions dialog, where you can manually enter transactions from a
bank statement.

4. Once the statement transaction information is available, CBS is ready to
reconcile the statement transactions against the CBS checkbook transactions.
Click the Next button to proceed with the reconciliation.

If the CBS checkbook register includes any matching uncleared entries dated
on or before the statement end date, the program will mark them as cleared. If
the program cannot find a matching transaction, it will leave the item in the grid.

5. If there are any transactions that cannot be matched, CBS opens the Resolve
Unmatched Transactions dialog. In this dialog, all uncleared checkbook
transactions are listed in the top pane and all uncleared statement transactions
are listed in the lower pane. See “Entering transaction data from a paper
statement” on page 16 for more details.

6. Click the Next button to open the Add Transactions to Checkbook window (if
necessary). CBS displays all transactions that you marked to add. If you save a
match for which the amounts in the checkbook transaction and the bank
transaction are different, CBS adds an adjustment transaction to the Add
Transactions to Checkbook window.

For example, if you recorded a check record in CBS with an amount of $10, but
the financial institution record shows the check amount as $100, CBS will
create a transaction with the amount of $90.

To add the adjustment to your checkbook, click the icon to create the
transaction. If the adjustment is a bank error, you can delete the adjustment,
unclear the related checkbook transaction, and add a zero-amount transaction
to note the expected bank adjustment to the next period.

7. Click the Done button to continue.

8. If all transactions have been matched, click the Finalize button in the Reconcile
Transactions window to finalize the reconciliation.

Important! CBS will not allow you to finalize the reconciliation if there are any
transactions in the Add Transactions to Checkbook window that are partially
cleared. You must either add these transactions or delete them from the Add
Transactions to Checkbook window.

14 Checkbook Reconciliation in Client Bookkeeping Solution

Automatic Checkbook Reconciliation

If you exit the Quick Clear wizard before finalizing the checkbook reconciliation, you
can return to it by clicking the Resume button. If you are reconciling to transactions
that have been downloaded or to an electronic file, you can choose to refresh your
data, but this is not required. CBS does not clear the data in the Quick Clear wizard
until you finalize the reconciliation.

Resolving unmatched transactions

Use the Resolve Unmatched Transactions dialog to manually match transactions
from your statement to transactions in the CBS checkbook register.

This dialog opens automatically during the Quick Clear process when you move to a
new dialog in the Quick Clear wizard and the program encounters one or more
statement transactions that could not be matched to a transaction in the checkbook
register.

CBS displays all checks, direct deposit details, and deposits as positive amounts.
(CBS uses the transaction type to determine the sign.) All other transactions are
shown with their appropriate sign.

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Automatic Checkbook Reconciliation

View by group box
You can choose the format in which you would like to view the transactions in the
Select Checkbook Transactions to Clear list.

ƒ If you choose the Totals option, the program displays the description entered in
the Payee or Description field in the Checkbook or Deposits windows. Each
transaction is displayed on a single line. If your accountant has enabled the
direct deposit feature for your CBS software, the program lists the paper portion
(if any) of a check separately from the direct deposit portion.

ƒ If you choose the Details option, the program displays any additional detail
information entered in the Details dialogs associated with the transaction. Each
component of each transaction is displayed on a separate line.

If you choose the Details option, you can click the Options button to open the
View Detail Options dialog, where you can choose the detail you want to view
(check detail, other item detail, deposit detail).

Add to checkbook button
You can click the Add to Checkbook button to have the program add the selected
bank statement transaction to the Add Transactions to Checkbook dialog.

Ignore bank TX button
You can click the Ignore Bank TX button to have the program remove the
transaction highlighted in the Bank Transactions list from this dialog and include it
on the Unmatched Statement Transactions tab of the Reconcile Transactions
window. CBS considers this a Bank error.

Suggestion buttons
You can click the New Suggestion button to have CBS try to match one or more
transactions in the Select Checkbook Transactions to Clear list with the currently
highlighted transaction in the Bank Transactions list. When the program suggests a
match, it first tries to match all transactions that use the same check number as the
bank transaction, regardless of the total amount of the checkbook transaction(s).
For all subsequent suggestions, it suggests matches when the checkbook
transaction amount is exactly the same as the bank transaction amount. You must
save all matches in order for them to appear on the Checkbook Transactions tab as
cleared. The program marks the checkbox in the Match column associated with the
transaction(s) in the Select Checkbook Transactions to Clear list that most closely
match the selected bank transaction.

When CBS suggests multiple CBS checkbook transactions to match a bank
transaction, the sum of the CBS transaction amounts must be exactly equal to the
bank transaction amount. If CBS finds more than one match for any bank
transaction, you can click the Previous Suggestion button to view the previous
suggested match or you can click the Next Suggestion button to view the next
suggested match.

Entering transaction data from a paper statement

Use the Statement Transactions dialog to manually enter transactions from a
hardcopy statement from your financial institution. These transactions will appear on
the Statement Transactions tab of the Reconcile Transactions window and will be
automatically reconciled with the Quick Clear wizard.

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Automatic Checkbook Reconciliation

To open the Statement Transactions dialog, click the Begin button in the Quick
Clear group box of the Reconcile Transactions window. In the Select Statement
Activity dialog, click the Paper Statement button.

The transactions you enter in this dialog will not be added to the checkbook register.
These transactions are used to reconcile against the register. To add transactions
to the register, use the Add Transactions to Checkbook window.

You can mark one or more of the checkboxes at the bottom of the Enter Statement
Transactions dialog to speed data entry in this dialog.

ƒ Fields to skip. Choose the column(s) to skip while entering transactions in this
dialog. Note that the Quick Clear wizard uses only the check number and
amount to match transactions.

ƒ Default amount to checkbook value. CBS will enter the amounts from the
CBS checkbook register when the type, date, and check number match the
statement transactions or if no amount is provided.

ƒ Increment check numbers. CBS will automatically enter the next available
check number in the Check # column.

ƒ Default new row. CBS will automatically enter the same text from the current
row in the next row when you press TAB.

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Automatic Checkbook Reconciliation

1. Choose Checkbook / Reconcile and then choose the checkbook you want to
reconcile.

2. In the Reconcile Transactions window, click the Begin button in the Quick Clear
group box.

3. In the Select Banking Activity dialog, click the Paper Statement button.
4. In the Enter Statement Transactions dialog, mark the checkboxes associated

with the fields you want to skip (if any) during data entry.
5. To have the program enter the amounts from the checkbook register when the

type, date, and check number match those for the transactions you enter from
the statement or if no amount is provided, mark the Default amount to
checkbook register value checkbox.
6. To have CBS automatically enter the next available check number in the Check
# column, mark the Increment check numbers checkbox.
7. To have CBS automatically repeat the same text from the current row into the
next row when you press TAB, mark the Default new row checkbox.
8. Enter the transactions from your bank statement in the Statement transactions
list.
9. Click the Next button. CBS adds these transactions to the Bank Transactions
list in the Resolve Unmatched Transactions dialog.

Retrieving transactions via direct connection

1. Open the Select Statement Activity dialog using either of the following methods:
ƒ Choose Checkbook / Reconcile and then choose the desired CBS
checkbook. In the Reconcile Transactions window, click the Begin button in
the Quick Clear group box.

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ƒ Choose Checkbook / View Bank Transactions and then choose the
desired CBS checkbook. Notice that the Paper Statement button is not
available when you open the Select Statement Activity dialog using this
command.

2. In the Select Statement Activity dialog, enter a date range for the transactions
you want to retrieve, or select All.

3. Click the Online button.

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Automatic Checkbook Reconciliation

Note: If CBS cannot connect directly to your bank’s servers or if you did not
enter any bank information for this checkbook in the Checkbook setup window,
the program will connect to your financial institution’s website in your default
browser. You can then access your account information and download your
transaction information.
4. In the Enter FI Information dialog, enter your PIN and then click the Submit
button to initiate the Quick Clear Wizard. If you prefer, you can click the Finish
button and clear your transactions manually.
5. Click the Statement tab to view the transactions from your financial institution.
Note that this tabbed page is not available if you opened this dialog with the
Checkbook / View Bank Transactions command.

Resolving duplicate transactions

In most cases, CBS can determine if a transaction has already been retrieved.
When CBS connects to your financial institution’s computer and starts to retrieve
transactions, if it encounters a transaction that has already been retrieved, it
displays the following message prompt.

Choose the appropriate transaction for the duplicate transactions. If you delete a
transaction after it has been retrieved and then choose to retrieve the transactions
again, CBS will be able to determine that the deleted transaction was retrieved, and
it will display the above message prompt when it tries to re-retrieve the transaction.

20 Checkbook Reconciliation in Client Bookkeeping Solution

Automatic Checkbook Reconciliation

Downloading a file

If your bank does not appear on the list of banks that support online banking, you
will not be able to retrieve transactions directly into CBS. However, your bank may
provide your account information in an electronic file that you can download. If you
financial institution can provide these files in any of the following file formats, CBS
can read the transaction data: Open Financial Exchange (OFX) and Quicken Open
Financial Exchange (QFX), Microsoft Money, Quicken version 2001 and higher, and
QuickBooks version 2001 and higher.

Once you have downloaded a file from your financial institution, you can use the
following procedure to retrieve data from that file.

1. Open the Select Statement Activity dialog using either of the following methods:

ƒ Choose Checkbook / Reconcile and then choose the desired CBS
checkbook. In the Reconcile Transactions window, click the Begin button in
the Quick Clear group box.

ƒ Choose Checkbook / View Bank Transactions and then choose the
desired CBS checkbook.

2. In the Select Statement Activity dialog, enter a date range for the transactions
you want to retrieve, or select All.

3. Click the Retrieve from file button. If you have not yet downloaded a file, click
the Online button to connect to your financial institution’s website. You can then
access your account information and download your transactions.

4. In the Select Bank File dialog, navigate to the file that contains your bank
transactions. CBS will then process the file and present the bank transactions.

Checkbook Reconciliation in Client Bookkeeping Solution 21

Automatic Checkbook Reconciliation
22 Checkbook Reconciliation in Client Bookkeeping Solution

Transaction Details

CBS allows you to enter detailed information about a transaction in any of the
following windows:

ƒ The Details tab of the Checkbook data-entry window.

ƒ The CW Distributions tab of the Setup / Vendors window (non-AP vendors).

ƒ The Details tab of the Setup / Memorized Transactions window.

CBS uses the transaction detail information for reporting purposes and for
checkbook reconciliation. CBS does not export the transaction details to your
accountant. You cannot enter transaction detail for noncalculating payroll checks,
PayCheck checks, or AP payments.

Entering detailed transaction information

You can specify transaction details for vendors in the CBS CheckWriter™ module
and then use the details in the Checkbook data-entry window. If your accountant
has set up your CBS program to allow you to write CheckWriter checks for 1099
vendors, you can select AP vendors in the Checkbook data-entry window.

If you chose the Update Memorized Transactions option on the General tab of the
Utilities / Options dialog and you enter any user-defined details for a memorized
transaction on the Details tab, the program updates the memorized transaction as
follows.

ƒ The CheckWriter transaction created from the memorized transaction will
include all user-defined detail items (including the dollar amounts) associated
with the memorized transaction.

ƒ The program will remove any detail items with zero amounts from the
CheckWriter transaction created from the memorized transaction. However, it
will not remove these items from the memorized transaction.

ƒ If you manually delete any detail items from a CheckWriter transaction created
from a memorized transaction, the program will not remove those items from
the memorized transaction.

You can also define and save detail descriptions in the Detail Descriptions user-
defined list (by choosing Setup / Maintain Lists / Detail Descriptions). You can then

Checkbook Reconciliation in Client Bookkeeping Solution 23

Transaction Details

include the user-defined detail information on the following CheckWriter reports by
choosing User-Defined Detail in the Format group box:

ƒ Unprinted Regular Checks

ƒ Printed Regular Checks

ƒ Deposits List

ƒ Other Bank Items List

ƒ Vendor List

The list of detail descriptions available in the drop-down list in the Description
column is defined by the user-defined list. Because the user-defined detail is not
exported to your accountant, you can edit the transaction details at any time, even if
the transaction has been exported. However, if a transaction has been cleared
during checkbook reconciliation, you cannot edit the detail information.

During checkbook reconciliation, if you choose the Details view option on the
Checkbook Transactions tab of the Reconcile Transactions window, be sure to
enter the appropriate detail information. For example, if your bank statement deposit
amounts include service fees for credit card vendors and you want to use the detail
to make it easier to combine deposit amounts for clearing, you may want to use the
same detail description for the credit card service fee transaction and the original
deposit detail for that credit card. This way, you can easily select the deposit
amount less the service fee in the Detail dialog.

If you are licensed for the optional CBS Accounts Receivable module and you enter
customer payments in the Tasks / Deposits window, the program uses these
payments as the detail information for the deposit transaction, either by payment
type or by credit card vendor description. For AR deposits, CBS combines all
checks, cash, and deposit reduction amounts into a “cash equivalents” transaction
when the Summarize Cash, Checks, and Deposit Reduction Amounts checkbox
is marked in the Edit / Detail Options dialog.

Viewing detailed transaction information

You can view the list of checkbook transactions in detail by choosing the Details
option in the View group box. If you choose the Details view, the program will list
each transaction detail as a separate transaction in the Checkbook transactions list.

If you clear one or more (not all) of the detailed transactions that are part of a single
transaction, the program considers the transaction as partially cleared. If you
choose the Totals view, the program places a P in the Cleared column of the
checkbook register listview for any partially cleared transaction.

If your accountant has configured your CBS software to allow you to write
CheckWriter checks to 1099 Vendors, you can enter detailed information on the
Details tab of the Checkbook data-entry window).

If you are licensed for the optional CBS Accounts Receivable module and you mark
the Summarize cash, checks and deposit reduction amounts checkbox in the
Edit / View Detail Options dialog, the program will summarize customer cash and
check payments and any deposit reduction amounts as one cash equivalents
transaction. You can set up the detail for credit card and COD customer payments

24 Checkbook Reconciliation in Client Bookkeeping Solution

Transaction Details

as user-defined credit card vendor descriptions or payments. If you use the same
user-defined credit card vendor description for both a credit card payment and a
COD payment, CBS will list each payment as separate transactions.

You cannot enter transaction detail for noncalculating payroll checks, PayCheck
checks, or AP payments.

The Options dialogs for the following CheckWriter reports now include a User-
defined detail option in the Format group box. If you choose this format option, the
program will include the description from the Detail Description user-defined list.
ƒ Unprinted Regular Checks
ƒ Printed Regular Checks
ƒ Deposits List
ƒ Other Bank Items List

Checkbook Reconciliation in Client Bookkeeping Solution 25

Transaction Details
26 Checkbook Reconciliation in Client Bookkeeping Solution

Other Checkbook Reconciliation
Dialogs

When the Checkbook Transactions tab of the Reconcile Transactions window is
active, you can access other dialogs from the Edit menu to help with the
reconciliation.

Reconciliation Detail Options

You can choose the type of detail to include when the Details option is selected in
the View group box. Note that the data-entry options you choose for one checkbook
reconciliation apply only to that checkbook.
Choose Edit / Detail Options.

ƒ View check detail. CBS displays the check detail for all CBS CheckWriter
checks.

ƒ View other item detail. CBS displays detail for any Other Item transaction.

ƒ View deposit detail. CBS displays detailed customer payment information.

Checkbook Reconciliation in Client Bookkeeping Solution 27

Other Checkbook Reconciliation Dialogs

ƒ Summarize cash, checks and deposit reduction mounts. CBS summarizes
customer cash and check payments and any deposit reduction amounts as one
cash equivalents transaction.

ƒ Summarize AR credit cards/COD amounts by payment type. CBS
summarizes by payment type all Accounts Receivable payments included in
this deposit to a single line for each deposit, regardless of the number of
payments deposited.

Note that the data-entry options you choose for one checkbook reconciliation apply
only to that checkbook.

Filter Reconciliation

You can limit the number of transactions displayed in the Checkbook Transactions
tab of the Reconcile Transactions window by specifying specific transactions to filter
out of the list. You can filter by cleared status (cleared, partially cleared, and
noncleared), transaction type (checks, payroll checks, other items, and deposits),
and ranges (check number, date, description, and amount).
Choose Edit / Filter Reconciliation.

28 Checkbook Reconciliation in Client Bookkeeping Solution

Other Checkbook Reconciliation Dialogs

Clear Check Range

You can specify up to five check number ranges to clear at one time.
Choose Edit / Clear Check Range.

Checkbook Reconciliation in Client Bookkeeping Solution 29

Other Checkbook Reconciliation Dialogs
30 Checkbook Reconciliation in Client Bookkeeping Solution

Checkbook Reconciliation Report

You can use the Checkbook Reconciliation report to help you reconcile the selected
checkbook or to keep a copy of your work. The Checkbook Reconciliation report
shows you summary information about the selected checkbook, including the
previous month’s balance, the current ending statement balance, and checkbook
balance. The report also lists each uncleared deposit and other additions, as well as
each uncleared check and other payments.

You can generate the report for any checkbook reconciliation you have finalized
using CBS version 2003.1.0 or higher, or you can generate the report for current
work in progress.

Printing the Checkbook Reconciliation report

If your accountant has enabled the checkbook reconciliation feature in your CBS
software, you can print a copy of the Checkbook Reconciliation report as follows.

1. Choose File / Queue Reports and click the CheckWriter tab.

2. Click the Options button associated with the Checkbook Reconciliation report.

3. In the Checkbook Reconciliation Options dialog, choose Statement date in the
Report Type group box, and then select the date of the statement to print.

4. In the Detail to include group box, mark the checkbox(es) associated with the
type of detail(s) to include in the report.

5. Select the order in which you want the transactions to be printed (by number or
by date) from the Sort checks by drop-down list.

6. Click OK.

7. In the Queue Reports dialog, mark the checkbox associated with the
Checkbook Reconciliation report and click the Print button.

Checkbook Reconciliation in Client Bookkeeping Solution 31

Checkbook Reconciliation Report

Out-of-balance reconciliation

If the reconciliation is not in balance, CBS will include information about the items
that are causing the reconciliation to be out of balance. The example below shows
the Summary Information section of a Checkbook Reconciliation report for an out-
of-balance reconciliation, and an explanation of each line follows.

Note that the amount of detail included in lines 2, 3, 9, and 10 depends on the
options you choose in the Checkbook Reconciliation report options dialog.
ƒ The following items reconcile the CBS checkbook to the financial institution

data.
1 Statement Beginning Balance. From the Summary tab of the Checkbook /

Reconcile Transactions window or the ending balance of a previous
finalized reconciliation.
2 Plus <x> Cleared Deposits and Other Additions. Sum of all Deposit or
Other Item-Deposit type transactions marked as cleared in the CBS
checkbook.
3 Minus <x> Cleared Checks and Other Payments. Sum of all Check or
Other Item-Payment type transactions marked as cleared in the CBS
checkbook.
4 Unreconciled Statement Amount. Difference between the transactions
marked as cleared in the CBS checkbook and the transactions that have
cleared based on the financial institution statement. CBS calculates this
amount by comparing the Statement Beginning Balance +/- cleared
transactions amount to the Statement Ending Balance. This amount is
included in the report only; it is not added to the CBS checkbook. This
amount will be reversed in line 11.

32 Checkbook Reconciliation in Client Bookkeeping Solution

Checkbook Reconciliation Report

Note: If you allow CBS to make an adjustment when you finalize the
reconciliation out of balance, line 4 on this report will be labeled
“Checkbook Reconciliation Adjustment” and the program will create an
adjustment transaction in the Checkbook data-entry window. In addition, the
report will not include the reversal on line 11.

5 Statement Ending Balance. From the Summary tab of the Checkbook /
Reconcile Transactions window.

6 Plus <x> Uncleared Deposits and Other Additions. Sum of all Deposit or
Other Item-Deposit type transactions dated on or before the statement
ending date and not marked as cleared or selected to clear.

7 Minus <x> Uncleared Checks and Other Payments. Sum of all Check or
Other Item-Payment type transactions dated on or before the statement
ending date and not marked as cleared or selected to clear.

8 Calculated Checkbook Balance as of statement ending date <date>.
Ending Balance amount (line 5) +/- Uncleared transactions amount (lines 6
and 7).

ƒ The following items reconcile the ending balance as reported by the financial
institution to the current CBS checkbook balance.

9 Plus <x> Future-Dated Uncleared Deposits and Other Additions. Sum
of Deposit or Other Item-Deposit type transactions dated after the
statement ending date and not marked as cleared or selected to clear.

10 Minus <x> Future-Dated Uncleared Checks and Other Payments. Sum
of Check or Other Item-Payment type transactions dated after the
statement ending date and not marked as cleared or selected to clear.

11 Reversed “Unreconciled Statement Amount.” If the report includes an
Unreconciled Statement Amount (line 4), the program reverses the balance
by this same amount. CBS assumes that the Ending Balance will be
reconciled before it is finalized; therefore, the adjustment will either be
added to the CBS checkbook or it will no longer be necessary to sum to the
ending balance.

If the report includes a Checkbook Reconciliation Adjustment (line 4), this
amount is not included on the report because the adjustment amount has
already been added to the CBS checkbook as a transaction detail.

12 Calculated Unreconciled Amount. Total amount unaccounted for in the
CBS checkbook. CBS calculates this amount to ensure that the Ending
Balance +/- future-dated uncleared transactions +/- reversals for an out-of-
balance checkbook reconciliation (line 4) is equal to the balance in the CBS
checkbook. This amount is most often attributed to the net of checkbook
adjustments that never appear in the checkbook reconciliation.

Checkbook Reconciliation in Client Bookkeeping Solution 33

Checkbook Reconciliation Report

Follow these steps to try to determine the cause:

ƒ In the Checkbook data-entry window, click the Number column heading
to sort transactions by number. Scroll through the list until you see the
Adjustments and review the following for each:

ƒ Adjustment date — CBS includes the future-period adjustments as
a separate line item on the report because all other adjustments are
assumed to have been resolved in order to have the CBS
checkbook ending balance match the bank’s ending balance.

ƒ Adjustment amounts — When you net the adjustment amounts, the
total should match the amount on the report. Remember to exclude
any amounts dated after the statement ending date.

ƒ Reason for the adjustment — Remember that adjustments are the
only transactions not included in a checkbook reconciliation.

ƒ If you cannot reconcile the report amount using the adjustments and
any of the following situations caused the adjustment on line 11, you
should enter an adjustment transaction in CBS:

ƒ You finalized the checkbook reconciliation out of balance but did
not make an adjustment.

ƒ You finalized the checkbook reconciliation out of balance and made
an adjustment but later deleted the adjustment from the CBS
checkbook.

ƒ You entered and then cleared historical transactions without
entering any current transactions to the checkbook.

ƒ You finalized the checkbook reconciliation and then deleted
unexported, cleared checkbook transactions without adding the
transactions back to the checkbook. Note that when you do add the
transaction back to the CBS checkbook, it will appear as an
uncleared transaction during the next reconciliation. To clear it, you
should add a historical transaction with the reverse amount and
then clear both transactions.

13 Actual CBS Checkbook Balance as of reconciliation. Actual balance of
the selected CBS checkbook.

14 Statement Ending Balance calculated per bank transactions. The sum
of the transactions or the account balance retrieved from the financial
institution. CBS displays this line in the report only if the ending balance
differs from the calculated balance of the selected CBS checkbook. This
amount includes only financial institution transactions entered in the Enter
Statement Transactions dialog, retrieved from a transaction data file, or
retrieved directly from your financial institution’s computers. Note that your
financial institution may calculate the balance differently, so you may expect
this difference based on the data provided by your financial institution.

ƒ Other reported adjustments. Each time you finalize a checkbook
reconciliation, you may want to regenerate the Checkbook Reconciliation report
based on the date the reconciliation is finalized. If you delete or modify any
transactions that affect the reconciliation and then regenerate a Checkbook
Reconciliation report for that checkbook, the report will include a line labeled
“Report Adjustment for transactions modified or removed.” This amount allows
the report to foot to the previously reported amounts.

34 Checkbook Reconciliation in Client Bookkeeping Solution