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Slide notes: Before we work with Bank Recons, it is useful to understand fully what a Bank Recon really is, what the purpose is, and to note how we would go about performing a Recon. At "About Bank Recons", we have a document that explains Bank Recons in a nutshell.

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Slide notes: A Bank Recon is the process of reconciling the Bank Statement Pages to the Cash Book, and in the process proving the validity of any difference between the Balance provided by the Bank and the Balance shown in our Cash Book.

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Slide notes: When we receive a Bank Statement, the Balance is usually different from what our Cash Book shows. Why so? Mostly it is because we post Deposits and Expenses in our Cash Book when they are performed, but at the Bank these Deposits may not show up immediately on the Bank Page, and especially the Cheques may take longer to arrive for clearance at the Bank and may only show up on our Statement much later. Then there are also Charges from the Bank, and Stop Orders and Debit Orders that we may only become aware of when we receive the Bank Statement, and that we do not have in our Cash Book yet.

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Slide notes: And so we can see that when we receive a Bank Statement, then we have to feed this information into the Bank Recon, and post Journals for Items that we have not been aware of until now, and match entries from the Bank Pages to entries in the Cash Book until we are left only with Items in the Cash Book that cannot be matched yet because they still have to appear on future Bank Pages.

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Slide notes: This process will prove and validate any difference between the Bank Balance and our Cash Book Balance, and in IES the Bank Recon is a state-of-the-art and wonderful instrument that is both quite fail-safe and at the same time very easy to use.