Part 8 - Bank Reconciliation


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The bank reconciliation tab and the information required to use this.

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Part 8 - Bank Reconciliation

  1. 1. PAT 3 – Guide Part 8 – Bank ReconciliationThis tab is optional. Choosing not to use it will not affect otherareas of the workbook
  2. 2. PAT 3 – GuideThe bank reconciliation tab is used to ensure that your bankaccount balances. The steps to use this are as follows:1. Identify which accounts within PAT you wish to reconcile (sometimes your main bank account may cover more than one account in PAT, e.g. your fabric fund is in your main account but is ringfenced for a restricted purpose).2. Mark the accounts you wish to reconcile as Include.3. Enter the dates on your bank statement (to and from) along with the opening and closing balances on the statement.
  3. 3. PAT 3 – GuideThe workbook will then automatically include the amounts of all transactions(receipts/payments and transfers) for the selected accounts in the period specified.Scroll down to line 57. If your bank reconciles, the difference figure should be zero. If itis not zero, your bank does not currently reconcile. You should therefore refer to thefollowing slides.
  4. 4. PAT 3 – GuideThe reason the bank does not reconcile is because either some items are included onPAT but are not on your statement or are on your statement but not included on PAT.In order to identify these, it is best to go through the receipts and payments tabschecking the items against your statement (tick the statement and use the bank reccheck options in PAT by inputting a “Y” when you find an item which is in both).E.g.
  5. 5. PAT 3 – GuideWhere you find an item is not marked as yes on the bank rec check for the period. Youwill need to enter this detail in the bank reconciliation tab as follows:Item identified when preparing bank rec (receipts):Details as input on Bank Reconcilation tab
  6. 6. PAT 3 – GuideItems identified when preparing bank rec (payments):Details as input on Bank Reconcilation tab
  7. 7. PAT 3 – GuideOnce these items have been input, the Difference should go to zero. The most likelyreason for this not happening is when a transaction was accounted for in the previousyear but the income/expenditure did not clear the bank until the following year.If this is the case, you will need to ensure that these figures are included on thereconcilation tab as per the previous two examples. You would not enter these into theaccounts again as they have already been accounted for in the previous year.