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Bank reconciliation

Your bank statement and your books rarely match on the same day. A cheque you wrote may not be cashed yet, or the bank took a charge you have not recorded. Bank reconciliation finds these differences. Do it at least once a month, before you close the month.

Before you start

  • Get the bank statement for the period, for example for "Commercial Bank of Ethiopia - current account" from 2026-09-01 to 2026-09-30.
  • Make sure all payments and receipts for the month are entered and submitted.
  • You need the Accounts User or Accounts Manager role.

Steps

  1. Go to Accounting in the sidebar and search for Bank Reconciliation Tool.
  2. Select the Company and the Bank Account.
  3. Set From Date and To Date to match the statement period.
  4. Enter the Closing Balance as per Bank Statement, for example 1,245,300 ETB.
  5. OLY ERP shows the balance as per your books and the difference.
  6. Go through the bank statement line by line. For each line, find the matching payment or journal entry in OLY ERP and record it as cleared on the date shown on the statement (the clearance date).
  7. If the bank has a line you have not recorded, such as a bank charge, create it first. Use a Journal Entry (type Bank Entry) for charges, or a Payment Entry for a customer payment you missed. Then clear it.
  8. When every statement line is matched, the difference should be zero, or equal only to items not yet on the statement.

Example

Meron's books show 1,250,550 ETB. The statement shows 1,245,300 ETB. The difference is 5,250 ETB:

  • A cheque to a supplier for 5,000 ETB is not yet cashed. It stays uncleared until it appears on next month's statement.
  • A bank charge of 250 ETB is on the statement but not in the books. She records it with a journal entry and clears it.

After this, the only open item is the cheque. That is correct.

Good to know

  • Only entries with a clearance date count as reconciled. Leave the clearance date empty for items not yet on the statement.
  • An item that stays uncleared for a long time needs attention. A very old cheque may need to be cancelled.
  • Never change an amount to force the balance to match. Find the real reason.
  • Reconcile each bank account separately.
Last updated 1 week ago
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