Finance and Accounting · Daily operations · 11 min read

Import and reconcile bank statements

Set up bank accounts and import profiles, import a statement, match every line to the ledger, and get the reconciliation approved by a second person.

Before you begin

• A ledger account exists for the bank (an active, postable asset account, not a control account).
• Permissions: reference.manage to create bank accounts; bankrec.configure for import profiles and rules; journal.prepare (and bankrec.prepare) to import, match and submit; bankrec.approve to approve.
• Posting accounts for bank charges and interest are mapped.

Set up the bank account

1. Open Finance > Banking > Bank accounts and press New bank account (company administrators).
2. Enter the Code, Name, Bank, Currency and the Ledger account. One active bank account may use each ledger account.
3. Enter the bank details if you hold them: IBAN (checked for its check digits), Account number and SWIFT / BIC. These are write-only: the screen shows only a masked IBAN such as AE07 •••• 4567. Add up to ten Authorised signers.
4. Save. Changing the IBAN or account holder raises the Beneficiary version and leaves a history row; changing notes does not.

Optional: create an import profile

If the bank's file layout is not recognised automatically, open Finance > Configuration > Bank import profiles and press New profile. Choose the Format (auto, csv, xlsx, camt, mt940), delimiter, date format (for example %d/%m/%Y), number style, whether signs are reversed, and map the columns (date, description, reference, amount or debit and credit). Only one active profile is allowed per account. Rules for scoring matches are set under Finance > Configuration > Reconciliation rules.

Import a statement

1. Open Finance > Banking > Bank reconciliation and press Import statement.
2. Step 1: choose the Bank account, an optional Import profile, and drop the file (CSV, spreadsheet, camt.053 XML or MT940; under 5 MB and 5,000 rows).
3. Step 2: enter the Statement reference (up to 60 characters), From, To, Opening balance and Closing balance. The opening balance plus the signed lines must equal the closing balance exactly.
4. Step 3: review the rows. Rows already imported are marked Seen before and skipped.
5. Step 4: press Import and then Open the statement.

To key a statement by hand, press New statement and add lines with a date, description, reference and signed amount (receipts positive, payments negative; zero is refused).

Match the lines

1. Press Reconcile on the statement to open the workspace. Bank lines are on the left and book entries on the right.
2. Press Run auto match. Only certain matches (a score of 80 or more, for example same amount, same day and the reference) are applied. Lower scores stay as suggestions.
3. Optionally press AI assist to propose matches for the rest. Each proposal has a Strong or Possible band and a reason; nothing is matched until you press Accept.
4. Match by hand with Find match manually. The entry must be on this bank account, for the same amount, and not matched to another line.
5. Use Group candidates when one bank line equals several entries, Combine for several lines against one entry, and Split this line when parts of a line belong elsewhere (parts must add up to the line).
6. For a line with no book entry, such as a bank charge, press Create entry (Missing book entry), choose the account and confirm. A journal is posted (debit bank charges, credit bank) and matched to the line.
7. Lines you cannot resolve can be recorded as exceptions with a reason, category, assignee and note.

Validate, submit and approve

1. Press Validate. The checks include opening plus movements equal to closing.
2. Press Submit for approval. Unexplained lines or an unexplained difference stop it.
3. A different user with bankrec.approve presses Approve (or Return with a reason). The preparer cannot approve their own submission while the maker-checker policy is on.
4. On approval the statement becomes Reconciled and a certificate with a digest is produced.

Worked example. The book balance is AED 13,000.00. A cheque of AED 200.00 is in the books but not on the statement, and a bank charge of AED 50.00 is on the statement but not in the books. Reconciled balance = 13,000.00 + 200.00 - 50.00 = 13,150.00, which equals the statement closing, so the difference is 0.00.

What happens next

A reconciled statement is locked: lines cannot be added, edited or matched. Cash position and the cash forecast use the reconciled balances. See Treasury register, cash position and forecast.

Good to know

• Submitted reconciliations cannot be changed. Ask for a return.
• BAI2 and OFX files are not supported. The Mapping studio tab is shown but disabled; use import profiles.
• The older statement Close action does not check the review state. Use submit and approve.
• Tolerances on a rule cannot exceed what the company policy allows.