Concept: Bank Account Reconciliation
Use bank reconciliation processing to reconcile bank statements against your cash transactions. Workday provides several ways to reconcile your accounts:
- Quick entry and reconciliation.
- Manual bank statement entry with manual or automatic reconciliation.
- Bank statement upload with manual or automatic reconciliation.
Quick Entry and Reconciliation
If you have a paper bank statement, this method enables you to create a version of your bank statement in Workday from your own account records. As you match this generated bank statement against the bank's statement, you manually reconcile matching entries or add new entries, and reconcile as you go. When you're done, reconciliation is complete. This method of bank reconciliation requires no setup except creating your bank accounts and is reasonably fast for a small number of transactions.
Bank Statement Entry
Recording the bank statement in Workday enables Workday to compare your cash transactions to the bank statement during reconciliation. You can record the bank statement data in Workday either by:
- Manually entering the bank statement data item by item.
- Uploading the statement using a public web service integration that you set up with your bank.
Bank Reconciliation
Once you have the bank statement data in Workday, you can either manually or automatically reconcile it. The bank reconciliation process enables you to:
- Reconcile each bank statement item to a matching item in your account record.
- Add items to your account record when the bank statement provides first notice of the item. Example: Wire transfers or service charges.
- Reconcile cash transactions against bank statement lines that Workday suggests as close matches.
Manual Reconciliation
Manual reconciliation enables you to manually search for matching account transactions and bank statement lines based on attribute and check off items that match. You can reconcile different relationships of bank statement lines and account transactions:
- Several bank statement items to a single item in your account records.
- Two or more bank statement lines, or two or more reconcilable items, that offset each other.
- A single bank statement item to several items in your account records.
- Several bank statement items to several items in your account records.
For bank accounts that use matching rule sets for automatic reconciliation, you can supplement manual reconciliation with AI Bank Reconciliation: Exception Matching. The feature suggests AI matches based on patterns from your manual reconciliation history.
Automatic Reconciliation
When you create or edit a bank account, you indicate either a basic or advanced automatic reconciliation. You can also set it to run when you load a statement, or you can start automatic reconciliation manually. You can reconcile 1 bank statement at a time, or multiple bank statements within a specified date range.
- Basic Automatic Reconciliation- A basic automatic reconciliation looks at the transaction amounts and dates as it compares bank statement entries to your operational transactions. When both match, it reconciles the item. If 1 matches, it suggests a match, but doesn't reconcile.
- Advanced Automatic Reconciliation- An advanced automatic reconciliation requires that you create definitions for transaction templates, purposes, reconciliation reasons, and rules. You use the rules to match bank statement items with items from your account records.Workday uses rules with a reconcile action to reconcile lines that are an exact match, or that meet a user-defined tolerance. If lines are a close match, Workday uses rules with a suggest action to make a suggestion. Example: If it finds a line in your accounts for which the reference number and the date match and the amount is close, Workday suggests an adjustment.For first-notice lines, Workday can create ad hoc bank transactions automatically.
After running an automatic reconciliation, you can use a manual reconciliation to search for any remaining unreconciled bank statement lines to match with transactions.
For bank accounts that use matching rule sets for automatic reconciliation, you can use AI Bank Reconciliation: Rule Orchestrator. The feature suggests new 1-to-1 matching rules based on patterns from your manual reconciliation history.