How do I enter a bank adjustment?

Use a bank adjustment to record a bank error.

Caution! Use bank adjustments sparingly. A bank adjustment records an entry to correct an error on the bank statement. Before you use a bank adjustment, you will need to contact the bank to confirm the error.

For example, the bank clears a check for a different amount then the check amount that's recorded in Connect. Joe from City XYZ finds the error and calls the bank. The bank tells Joe that they will correct the check amount and the corrected check amount will show up on the next bank statement.

Now, Joe has two options:

(1) Enter a journal entry in the current month and then clear it in bank reconciliation, and then enter a reversing journal entry in the following month and then clear it in bank reconciliation, or

(2) Enter a bank adjustment and record it as a bank error.

Joe chooses to enter a bank adjustment. When Joe receives the bank statement for the next month, he will see a credit for the check amount. Joe marks the credit as cleared because it was entered as a bank adjustment in the previous month.

In this Topic

How do I enter a bank adjustment?
1. Entering a bank adjustment
2. What if the bank will not correct an error?

Entering a bank adjustment

Follow these instructions when the bank will correct an amount.

Do this...

1. Open Connect General Ledger > Reconciliation > Reconcile Bank Accounts.

2. Open the bank reconciliation with the bank error.

3. Click to select the Bank Adjustments button.

Bank Adjustments button

The Bank Adjustment Entry screen displays.

4. Enter the bank adjustment.

Entry row in Bank Adjustment Entry

5. Click Accept.

Connect will use the bank adjustment to adjust the proof.

Published 24Aug2017

What if the bank will not correct an error?

You can record a journal entry to correct the check amount when there is a bank error and the bank will not correct it.

Do this...

1. Record a CD journal entry (Connect General Ledger > Journals > Enter Journals), use the check number as the reference number, and enter the difference between the check amount recorded by the bank and the check amount recorded in Connect as the amount.

2. Now, you can use Cleared Check Entry in Bank Reconciliation (Connect General Ledger > Reconciliation > Reconcile Bank Accounts) to clear the journal entry for the check amount and clear the check amount for the difference.

Published 24Aug2017