> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Bank Reconciliation Wizard

> Step-by-step guide for reconciling bank accounts

# Bank Reconciliation Wizard - User Guide

**Version:** 1.0.0\
**Last Updated:** 2026-01-28

## Overview

The Bank Reconciliation Wizard guides you through reconciling your bank accounts in 5 easy steps. It automates transaction matching, highlights discrepancies, and ensures your books match your bank statements.

:::tip Before You Begin

* You must have **fa.reconciliation.create** permission
* Have an active bank account with a linked GL account
* Download your bank statement file (CSV or OFX format)
  :::

## Quick Reference

| Task                      | Navigation Path                            |
| ------------------------- | ------------------------------------------ |
| Start New Reconciliation  | **Finance > Reconciliations > New Wizard** |
| View Past Reconciliations | **Finance > Reconciliations**              |
| Manage Bank Accounts      | **Finance > Bank Accounts**                |

## Step-by-Step Guide

### Step 1: Select Bank Account

1. Navigate to **Finance > Reconciliations**
2. Click **New Reconciliation** button
3. Select the bank account to reconcile from the dropdown
4. Choose the **Reconciliation Date** (typically end of statement period)
5. Set the **Period Start Date** and **Period End Date** to match your statement

:::note
The period dates determine which GL transactions are considered for matching.
:::

### Step 2: Import Bank Statement

1. Click or drag to upload your bank statement file
2. Select the **File Format**:
   * **CSV** - Comma-separated values (most common)
   * **OFX** - Open Financial Exchange format
3. Wait for the file to be parsed and validated
4. Review the import summary showing:
   * Number of transactions imported
   * Total debits and credits
   * Beginning and ending balances

The system automatically triggers **auto-matching** after import.

### Step 3: Review Auto-Matches

After import, the wizard automatically matches bank transactions to GL entries based on:

* Amount (exact or tolerance-based)
* Date proximity
* Description/reference similarity

Review the matches:

* **High Confidence (≥70%)**: Shown in green - usually correct
* **Medium Confidence (50-69%)**: Shown in yellow - verify manually
* **Low Confidence (\<50%)**: Shown in red - likely needs manual attention

To **remove an incorrect match**:

1. Find the match in the list
2. Click the **Remove** button
3. The transaction returns to the unmatched pool

### Step 4: Manual Match Exceptions

For transactions that weren't auto-matched:

1. Select one or more **Bank Transactions** from the left column
2. Select corresponding **GL Entries** from the right column
3. Verify the totals match (shown at bottom of each column)
4. Click **Create Match**

**Matching Rules:**

* 1:1 match - One bank transaction to one GL entry
* 1:many match - One bank transaction to multiple GL entries
* many:1 match - Multiple bank transactions to one GL entry

Repeat until all transactions are matched or accounted for.

### Step 5: Complete Reconciliation

Review the final summary:

| Item                | Description                             |
| ------------------- | --------------------------------------- |
| Bank Ending Balance | Ending balance from your statement      |
| GL Ending Balance   | Calculated balance from matched entries |
| Outstanding Checks  | Uncleared check amounts                 |
| Deposits in Transit | Uncleared deposit amounts               |
| **Difference**      | Must be \$0.00 to complete              |

If the difference is **\$0.00**:

1. Click **Complete Reconciliation**
2. The reconciliation is finalized and locked

If there's a difference:

1. Review unmatched transactions
2. Check for missing GL entries
3. Verify statement balances are correct
4. Create adjusting entries if needed

## CSV File Format

Expected CSV columns:

| Column       | Description                   | Required | Example                  |
| ------------ | ----------------------------- | -------- | ------------------------ |
| Date         | Transaction date              | Yes      | 2026-01-15               |
| Description  | Transaction description       | Yes      | Direct Deposit - Payroll |
| Amount       | Transaction amount            | Yes      | -1,250.00                |
| Check Number | Check number if applicable    | No       | 1234                     |
| Reference    | Reference/confirmation number | No       | TRN-9876543              |

**Amount Notes:**

* Negative amounts = debits (withdrawals, checks, fees)
* Positive amounts = credits (deposits, transfers in)

**Example CSV:**

```csv theme={null}
Date,Description,Amount,Check Number,Reference
2026-01-02,Opening Balance,10000.00,,
2026-01-05,Check - Vendor Payment,-500.00,1001,
2026-01-10,Direct Deposit Payroll,5000.00,,DEP001
2026-01-15,Bank Fee,-25.00,,FEE-JAN
```

## Tips & Best Practices

* **Reconcile Monthly**: Don't let statements accumulate
* **Check Dates First**: Ensure period dates capture all relevant transactions
* **Review Low Confidence Matches**: Auto-matching isn't perfect
* **Document Discrepancies**: Add notes for future reference
* **Save Progress**: Use "Save and Exit" for complex reconciliations

## Troubleshooting

### Issue: Reconciliation Not Balanced

**Symptoms**: The difference is not \$0.00

**Solutions**:

1. Check for unmatched transactions in both lists
2. Verify beginning balance matches prior reconciliation
3. Look for duplicate matches (same transaction matched twice)
4. Check for missing GL entries (timing differences)
5. Review bank fees that may need separate entries

### Issue: Auto-Match Not Finding Matches

**Symptoms**: Many transactions show as unmatched despite existing GL entries

**Solutions**:

1. Verify GL entries exist for the reconciliation period
2. Check that amounts match exactly (including sign)
3. Ensure dates are within the matching tolerance (typically ±3 days)
4. Look for amount rounding differences
5. Use manual matching for unusual transactions

### Issue: Cannot Complete - "Not Balanced" Error

**Symptoms**: Complete button is disabled or shows balance error

**Solutions**:

1. The difference must be ≤ \$0.01 to complete
2. Check for outstanding items not yet accounted for
3. Create adjusting journal entries if needed
4. Contact your accounting team for large discrepancies

### Issue: CSV Import Fails

**Symptoms**: Error message during file upload

**Solutions**:

1. Verify file is saved as UTF-8 CSV format
2. Check column headers match expected format
3. Ensure dates are in YYYY-MM-DD format
4. Remove any special characters from amounts
5. Try OFX format if available from your bank

## Related Guides

* Bank Accounts Setup
* [General Ledger Guide](./general-ledger-guide.md)
* [Chart of Accounts Guide](./chart-of-accounts-guide.md)