These are tasks you must complete after both system configuration and initial bank transaction setup are finished, but before you reconcile a bank account for the first time in Kenandy.

• Create bank account records in Kenandy

Before you do your first reconciliation of a bank account in Kenandy, follow these steps: 

1. Reconcile the account using your old system.
   
2. Identify the following information:
   • Ending balance on the last statement you reconciled in your old system
   • End date on the last statement you reconciled in your old system
   • All uncleared deposits and credits
   • All uncleared payments and debits

For example: 

• Opening Balance

  The ending balance on the last bank statement you reconciled to your company cash balance using your old system.

  For example, to enter an opening balance for the sample account, enter 101,650.

• Opening Balance Date

  The ending date on the last bank statement you reconciled to your company's cash balance using your old system.

  For example to enter the opening balance date for the sample account, enter 10/31/2017.

  

• Balance Offset

  An amount you want Kenandy to disregard for this bank account the first time you reconcile in Kenandy.

  You can create source documents in Kenandy for each uncleared transaction in your bank account. If you do this, set the Balance Offset = 0.

  If you don't want to create source documents for uncleared transactions in Kenandy, enter the net for all the uncleared transactions in Balance Offset.

  In the example account, if you don't want to create transactions reconcile the outstanding transactions in Kenandy, you'd enter $1650.00 in Balance Offset.

1. On the Journal Entry page, as you fill out the header, enter the following values:
   • Type = Manual
   • Transaction Date = the Opening Balance Date you entered in the bank account record
   • Description = Opening balance for <bank account name> (or something similar)
     

2. Create a second JE line with the following information:

   • GL Account = Cash
   • Debit = Opening balance - net of all outstanding transactions
   • Description = Opening cash balance (or something similar)

3. Create a JE line with the following information: 
   • GL Account = Retained Earnings
   • Credit = Opening balance - net of all outstanding transactions
4. Finalize and save the JE.

The JE is recorded. For example:

You must create a JE for the Cash Clearing account for the date this bank account goes live in Kenandy, before anything related to this bank account gets processed.

The GL bank account opening balance that you just posted has already been increased/decreased by the amounts of the outstanding transactions. Creating this JE moves those amounts out of your Cash account and into your Cash Clearing account, where they can be accurately matched and reconciled when you first reconcile this bank account in Kenandy.

1. On the Journal Entry page, as you fill out the header, enter the following values:
   • Type = Manual
   • Transaction Date = The day after the Opening Balance Date you entered in the bank account record. In this example, use Nov 1, 2017.

     Note: Use the day after your opening balance date so that the Cash Clearing Reconciliation Report can this date and ignore any entries with earlier dates.

   • Description = <Bank account name> outstanding transactions (or something similar)
     
2. Create a JE line for each outstanding transaction with the following information: 
   • GL Account = Cash Clearing
   • Debits = Amount of customer receipt
   • Credits = Amount of supplier payment
   • Description = Check number (or another description of this transaction)
   • Bank Account = <Bank account name>

     Note: Be sure to enter the correct bank account name so that it's available as a document to match against a bank transaction later on.

   Important: Every uncleared transaction must have its own separate JE line so it can be matched to bank transactions later on.

3. Create one JE line with the following information:
   • GL Account = Cash
   • Debits or Credits = Net of all outstanding transactions
4. Finalize and save the JE.

The JE is recorded. Your Cash Clearing account is now up to date and incoming bank transactions can be reconciled correctly. For example: 

Before you reconcile this account, compare your GL accounts to the final reconciliation of this account from your old system.

• Cash account balance = Bank statement ending balance as of final reconciliation date
  In this example, $100,000.
• Cash Clearing account balance = Net sum of all uncleared transactions
  In this example, $1,650 net.

The example accounts look like this: 

What's Next

Now you can start importing or uploading bank transactions into Kenandy and reconcile this account.

As the outstanding transactions clear the bank, the corresponding bank transactions are created. When you run accounting for this bank account, these transactions move from Cash Clearing to Cash.