Automatic Bank Reco
Created by: arun kelkar
This module will greatly enhance the utility of GNUKhata. No such module is provided in any existing accounting software.
Banks allow its customers to download their bank accounts. These downloads are, amongst other formats, in a spreadsheet format. The spreadsheet has many columns of which important columns from the point of view of Auto Bank Reco are 1. Date, 2. Amount, 3. Instrument No., 4. Transaction Remarks or Description or Narration and 5. Dr/Cr. Not all banks have the DR/Cr column.
While recording a receipt or payment, the user will, apart from the usual fields, be filling in the following fields.
- Mode: The user will select one from the drop down consisting of Cash, cheque, DD, Net Banking, RTGS, NEFT, IMPS.
- If by Cheque or DD, then A) instrument No., B) Name of the Bank and C) Name of the Branch.
From the Instrument No., Name of the Bank and Branch and Amount a transaction can be identified, both in the Ledger account and the bank statement.
How it will be done?
Assuming the user wants to do Auto Bank Reco.
The user will down load the Bank Statement in the spreadsheet format for the period for which the reconciliation is to be done.
When the Bank Reco module is activated, the user will be asked to select the bank and the period for which the reconciliation is to be done. The ledger for the specified period will be displayed with cursor on the first row of the Clearance Date column.
The software will take up the first transaction from the ledger account. Pick up its instrument No., amount and date.
The software will search for the instrument No in the bank statement. (It could be in any column of the bank statement. Some banks have a separate column for this, while some show it in the Description or Narration column). Similarly it will search for amount and if these match it will check the Clearance Date with the date of transaction. If the Clearance Date is subsequent to the date of transaction in the ledger then software will fill the Clearance Date field of the transaction with the date picked up from the bank statement. And take up next transaction from the ledger and so on.
If the payment is made by any mode other than cheque or DD, that is, through Credit Card, Net Banking, Credit Card, NEFT, RTGS etc then there would not be any Instrument No., but there would be a unique number identifying the transaction. This number could be from 9 to 14 digits.
In such cases, the user is expected to fill this unique number in the Instrument No field.
- Where cash is withdrawn from ATM. In the Transaction Remark of the statement this will be identified by the words ATM/Cash WDL/ ATW.
- Where payment is made through a Payment Getway, the transaction is identified by either a 12 or 14 digit number and the name of the party to whom the payment is made.
- Where payment is made towards Income Tax, the unique No of the transaction will consist of the BSR Code of the Bank plus date in ddmmyyyy format plus the Challan No. Thus the data entered in the Instrument No field becomes crucial for the success of Auto Bank Reco. Where it is not possible to enter anything in this field, the Clearance Date will have to be entered manually. In reality this will be semi automatic bank reco.