The balance on a bank account is incorrect after reconciliation

Overview

An issue manifested when reconciling a bank account. Somehow the interest income showed up twice or didn't clear correctly when the account was reconciled. Now when you reconcile the account, it's working, but when you look at the balance on the account it's exactly short of the amount of interest that was earned.

The interest income was added through an adjustment entry and then deleted later. The journal was purged.

Solution

The balance inconsistency is caused by the bank reconciliation opening balance was not being properly carried forward in the months since when the issue manifested. Additionally, the bank reconciliation for the month when the issue manifested appears as not done.

Since more recent bank reconciliations have been processed, Everest will not allow you to run for a previous date.

This inconsistency must be manually corrected in the database. For this reason, you need to have access to the database server. To do so, please follow the steps below:

1. Open Microsoft SQL Server Management Studio.
2. Open your company database (EVEREST_XXXXXX).
3. Click on the New Query button.
4. Run the following query:
   

   SELECT * FROM BANK_RECONCILIATION WHERE COA_CODE LIKE '{account_name}' ORDER BY RECON_DATE DESC;

   Replace {account_name} with the relevant account name.
5. You will see that starting from the month when the issue manifested, the opening and closing balance are not carrying forward correctly.
6. Update the OPEN_RECON_BALANCE and CLOSE_RECON_BALANCE for each inconsistent reconciliation entry accordingly by adding or removing the required amount:
   1. Note the BANK_RECONCILIATION_ID for the entry that you will correct.
   2. Run the following query:
      

      UPDATE BANK_RECONCILIATION
      SET OPEN_RECON_BALANCE = {corrected_opening_balance}, CLOSE_RECON_BALANCE = {corrected_closing_ballance}
      WHERE BANK_RECONCILIATION_ID = {recon_id}

      Where:
      • {corrected_opening_balance} is the corrected opening balance amount
      • {corrected_closing_ballance} is the corrected closing balance amount
      • {recon_id} is the id noted in step 6.a.
7. In the Everest application, go to Accounting > General Journal and add a General Journal entry to match the bank balance with the Bankbook.

Testing

After correcting the balances as described above, when you run an activity report, the balance is now correct and it matches the actual amount you have.