If, after completing the reconciliation process, you find that your reconciliation summary is not balancing (i.e. accounts are not reconciled), Rex allows you to enter a manual adjustment. This is to be used appropriately, namely to record an unknown but legitimate expense/deposit.
To initiate a manual adjustment during the reconciliation process follow the below steps
- Proceed to step 4 of the reconciliation
- Click Enter Manual Adjustments - this will produce a new pop up with three fields:
Transaction type: Select the type of transaction (whether a debit or credit).
Amount: Enter the amount in dollars.
Description: Ensure a comprehensive description is entered under particulars for audit purposes.
- Enter details into appropriate fields providing as much information about the transaction in the particulars text box
- Click Done
This will modify the reconciliation summary accordingly and should now balance.
Important Note: Manual Adjustments should not be used casually. They are made available as a last measure when every other option has been exhausted and your trust account still cannot be reconciled. In the event that a manual entry is utilised, the transaction should be reversed as soon as it is identifiable (this is an absolute must to ensure your accounts remain clear and pose minimal risk at audit time).
How to use manual ledger adjustments in different scenarios
- When you cannot identify a deposit made into your bank account: Credit your manual adjustments ledger - include any details available for the unidentified line item shown on the bank statement.
- When you subsequently identify the deposit: Debit your manual adjustments ledger, then apply a receipt against the appropriate listing ledger.
- When you cannot identify an outgoing payment that appears on your bank statement: Debit your manual adjustments ledger - include any details available for the unidentified line item shown on the bank statement.
- When you subsequently identify the payment: Credit your Manual Adjustments Ledger, then apply a payment / withdrawal against the appropriate listing ledger.
Dealing with unexpected bank fees
- When bank fees are mistakenly charged to your account: Debit your manual adjustments ledger.
- When this is corrected by the bank or via a transfer from your agencies general bank account, credit your manual adjustments ledger.