First Bank Reconciliation

The balance of a Bank Account is determined by summarizing all the bank activity that has occurred since the account was opened. However, when converting to Gravity, only a portion of the bank's historical transactions are imported, which can make it challenging to perform the initial bank reconciliation using these transactions. Fortunately, Gravity offers a solution that allows for a seamless implementation of the first reconciliation.

The following steps are used to prepare for the first bank reconciliation. You must first do a reconciliation to close out the converted history that was previously reconciled. You will have to follow these steps:

First select the ending bank statement date of the last bank reconciliation in the old system. If the final reconciliation was for the period ended 9/30/18, use that date for Gravity’s first reconciliation.

Select the Bank Account, enter the Bank Statement balance as of the period end date. Use the period end date for the Ending Bank Statement Date and the Transaction Cut Off Date.

The Transaction Cut Off date is the end date to show transactions in the Bank Rec screen. It is usually the same date as the Ending Bank Statement Date

In your old system identify those transactions that were still not reconciled as of the period end date. Those transactions must remain un-reconciled or unchecked in the Gravity Bank reconciliation.

Place checkmarks in the reconciled column of the remaining transactions to show them as reconciled.

Depending on how many transactions were converted there may be a large volume of transactions to mark.

The Beginning Balance will have to be plugged so that the Difference will equal $0. This is required for the first bank reconciliation as all the history for the bank account has not been converted.

Use the Edit button to allow the Beginning Balance to be updated. This Edit function is only available for the first bank rec for each account.

Once you have reviewed the item reconciled and edited the Beginning Balance you can mark the reconciliation as complete. This will close the reconciliation and allow you to open a reconciliation for the next period.

Once you have completed this preliminary reconciliation, you will be able to create a new Bank Reconciliation in Gravity for the next period. The closing bank balance from the last reconciliation will become the opening balance for the next one. Un-reconciled items will carry forward to the next period for review.

Note:

The first Bank Reconciliation may have thousands of transactions based on the years of conversion history. To complete the first bank reconciliation, we recommend the following procedure.