How do Transactions Affect the Bank Reconciliation

When an Accounts Payables Check is written, but not marked off on the Bank Reconciliation:

* The "Adjusted Bank Balance" is DECREASED
* The "GL Balance" is DECREASED
* The "Amount to Reconcile" remains the SAME

When an Accounts Receivable Payment is received, but not marked off on the Bank Reconciliation:

* The "Adjusted Bank Balance" is INCREASED
* The "GL Balance" is INCREASED
* The "Amount to Reconcile" remains the SAME

*** If the AR entry is a check, and the check was added to a bank deposit, the check will not have a box to be marked off as it will be included in the Deposits Pending section.

When a Bank Deposit is created:

* The "Adjusted Bank Balance" is INCREASED
* The "GL Balance" is INCREASED
* The "Amount to Reconcile" remains the SAME

When the Bank Deposit is checked off on the Bank Reconciliation:

* The "Adjusted Bank Balance" is DECREASED
* The "GL Balance" remains the SAME
* The "Amount to Reconcile" is DECREASED

When you write a Manual Check:

* The "Adjusted Bank Balance" is DECREASED
* The "GL Balance" is DECREASED
* The "Amount to Reconcile” remains the SAME

When the Manual Check is checked off on the Bank Reconciliation:

* The "Adjusted Bank Balance" is INCREASED
* The "GL Balance" remains the SAME
* The "Amount to Reconcile” is INCREASED

When Payroll Checks are Written:

* The "Adjusted Bank Balance" is DECREASED
* The "GL Balance" is DECREASED
* The "Amount to Reconcile” remains the SAME

When Payroll Checks are checked off on the Bank Reconciliation:

* The "Adjusted Bank Balance" is INCREASED
* The "GL Balance" remains the SAME
* The "Amount to Reconcile” is INCREASED

*** Payroll Checks will NOT change the Bank Reconciliation balances until the CHECK DATE.

ALL the transactions will affect the Adjusted Bank Balance and GL Balance regardless if journals have been posted.