Account Reconciliation

The Account Reconciliation feature in Tally.ERP 9 can be used for transaction-by-transaction reconciliation of the Company's Books  with Sister Concerns, Branch offices, etc., apart from third parties.

To view and use the Account Reconciliation report,

Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Other Analysis > Account Reconciliation

The Account Reconciliation report is displayed:

• Place the cursor on the required Ledger, and press Enter to reconcile.

Click here to know the F12: Configure options in this report

The Account Reconciliation sub-screen is displayed.

Account Reconciliation in Tally.ERP 9 can be done by:

Loading Ledger

This option is used if the data received can be loaded on Tally.ERP 9 in the form of a company.

In the Account Reconciliation sub-screen,

• Choose the option Loading Ledger from the Compare By list

• Press Enter to move to the Name of Company field. Tally.ERP 9 displays the List of Companies that are open

• Press Enter to move to the With field. A List of Ledgers available in the compared company will be displayed

• Choose the required Ledger and press Enter  

The Account Reconciliation report appears.

Loading Transactions

This option can be used if the party concerned also uses Tally.ERP 9. The data can be exported as an XML file and sent across to the auditor, who will be able to import the same into his Tally.ERP 9 and use it for auditing purposes.

In the Account Reconciliation sub-screen,

• Choose the option Loading Transactions from the Compare By list

• Press Enter. The field, Import file path with file name will appear. Specify the location of the XML file here, and press Enter again

The Account Reconciliation report appears:

The transactions as per the user's books and the compared books will be displayed.

Account Reconciliation can be performed in two ways:

• Accept Reconciliation

  • Values in the user's books will be displayed in the Company Books column and those in the party’s books will appear in the Compared Books column

  • Based on Voucher Type and transaction details like amount, date etc., Tally.ERP 9 will suggest possible matches for reconciliation - these possible matches will be transactions of opposite nature (in this screen, Purchase transaction of Company Books appears with Sales transaction from Compared Books as a possible match). Transactions in the Company Books which will be displayed in black, and below them, corresponding matches in the Compared Books which will be displayed in blue.

  • Place the cursor on the transaction in the client’s books which needs to be reconciled, and press Spacebar to select it.

  • Press Ctrl+A or click on Ctrl+A: Accept Reconciliation

  Tally.ERP 9 will display a message requesting the user to confirm the reconciliation

  

  • Press Y or Enter to complete reconciliation of the transactions selected

  • Transactions that have been reconciled will appear marked Yes in the Reconciled column

  

   

• Manual Reconciliation

  Transactions from the client’s books can be reconciled with transactions that haven't been suggested by Tally.ERP 9 from the compared books.

  In the Account Reconciliation report,

  • Place the cursor on the transaction that has to be reconciled, and press Ctrl+Enter or click on Ctrl+Enter: Reconcil

  The Reconciliation Transactions screen appears:

  

  The selected transaction will displayed under the head Reconcile, and a list of possible matches will be displayed under the head For Reconcile. By default, Tally.ERP 9 will pick transactions of the opposite nature - in this screen, for a Purchase transaction from the Company Books, Sales transactions from the Compared Books are listed as possible matches. These transactions too, will be captured here based on the Voucher Type and transaction details like date, etc.

  • Place the cursor on the required transaction(s), press Spacebar to select them, and then press Enter to reconcile them with the transaction(s) displayed under Reconcile

  • The Remark screen will appear where comments and observations can be entered.

  • The transactions will appear marked reconciled in the Account Reconciliation report

  • Transactions from the Company Books and  the Compared Books that have not been reconciled will appear under the Unreconciled section of the report

  At the bottom of the Account Reconciliation report, the following information will be available:

  • Opening Balance indicates the Opening Balance of the Ledgers in each of the books that are being reconciled

  • Current Debit Total indicates the Debit total as per Company Books and Credit total  as per Compared Books

  • Current Credit Total indicates the Credit total as per Company Books and Debit total as per Compared Books  

  • Closing Balance will be the difference between the Debit total and Credit total in each of the books compared

  • The grand total of the Debit columns and the Credit columns of the Company Books and the Compared Books will be broken down into Reconciled and Unreconciled values

  Nil values for the above details under Reconciled column indicate clean records on the part of the client.

   

Account Reconciliation - exporting an XML file for Reconciliation

Button options is Account Reconciliation report

F1: Condensed

Tally.ERP 9 will by default display a detailed Account Reconciliation report. Click on F1: Condensed or press Alt+F1 to view the condensed report.

F2: Period

Click on F2: Period or press F2 to change the selected period.

F7: Voucher

Place the cursor on the required transaction in the Compared Book and press F7 or click on F7: Voucher to create Voucher entries from the Account Reconciliation screen. Tally.ERP 9 will automatically display the Voucher with the opposite nature of transaction, i.e., if the transaction is a Purchase entry, the Voucher displayed will be a Sales Voucher.

F8: Show Ledger

Click on F8: Show Ledger or press F8 to view the default Ledger Vouchers report for the selected Party along with the details of the Opening Balance, Current Total and Closing Balance.

F9: Remark

To add observations for the reconciled Vouchers, if any, click on F9: Remark or press Alt+F9. The Remark sub-screen will be displayed. Comments entered here will be displayed. Comments made here will appear in the Remarks column of the Account Reconciliation report.

Ctrl+F9: Restore Remark

Click on Ctrl+F9: Restore Remark or press Ctrl+F9 to undo remarks made for a transaction.

Ctrl+F10: Restore Default

Click on Ctrl+F10: Restore Default or press Ctrl+F10 to change the Reconciled transactions back to their Unreconciled state.

Note: The F9: Remark, Ctrl+F9: Restore Remark, and Ctrl+F10: Restore Default buttons will be highlighted when one or more Vouchers is/are selected using the Spacebar key.

F9: Inv Reports

Click on F9: Inv Reports or press F9 key to navigate to the default Inventory Reports like Godown Summary, Movement Analysis, Stock Summary etc

F10: Acc Reports

Click on F10: Acc Reports or press F10 key to navigate to the default Accounting Reports like Balance Sheet, Cash Flow, Trial Balance etc.

F10: Audit Reports

Click on F10: Audit Reports or press Alt+F10 keys to navigate to the other Audit Reports within Statutory Audit and 44AB Audit (Tax Audit)

F12: Configure

Click on F12: Configure or press F12 and use the following options to change the default view of the Account Reconciliation report:

Show Opposite Transactions to

Select the Type of Entries for which transactions of the opposite nature, from the Compared Books, has to be displayed. Users can view the Account Reconciliation report with opposite transactions from compared books for All Vouchers, Credit Entries only, or Debit Entries only.

Show Transactions Reconcile status of

This filter allows the user to view the report based on the Status of transactions - the report can be configured to display both unreconciled and reconciled transactions, only Reconciled transactions, or only Unreconciled transactions.

Show Unreconciled

Set this option to Yes to view Unreconciled transactions of both Company Books and Compared Books.