Concept: Book-to-Bank Reconciliation

Book-to-bank reconciliation enables you to compare bank account balances and bank activities against cash ledger balances and operational activities. You can use the

Book to Bank Summary

report and subreports to analyze your balances and reconcile any variances.

Discrepancies between the bank and ledger balances can occur when:

You've recorded transactions in the ledger that the bank hasn't yet processed. Example: Outstanding deposits or checks.

Your bank statements include first-notice items that you haven't recorded in the ledger. Example: Bank service fees or interest earned on bank accounts.

You've recorded transactions in the ledger manually that the bank hasn't acknowledged.

You've canceled or escheated payments for a future period.

Book to Bank Summary Report

The

Book to Bank Summary

composite report groups the columns into sections that provide detailed information from aggregated subreport data. For each bank account, you should see:

Bank balances equal to the cash balances.

Uncleared bank statement lines equal to zero.

Uncleared operational transactions equal to the sum of all unreconciled items.

Journals from nonoperational transactions.

Section	Description	Example
Bank Account Information	Displays these columns: Company and Financial Institution : The company and financial institution from your bank account configuration. Bank Account Currency : The currency from your bank account configuration. Transaction Currency : The currency from the transactions. For manual journals, the report displays: Entries with different transaction currencies in multiple rows for the bank account. Entries without the Bank Account worktag in a row with blank Bank Account and Company fields. If you've mapped the bank account to a company hierarchy, the report displays aggregated results for all companies in the company hierarchy.
Bank and Cash Ledger Balances	Displays these columns: Bank Balance : The ending balance on the last noncanceled bank statement before the end of the period. If there isn't a bank statement available in the current month, Workday uses the last available statement from the prior month. Cash Ledger Balance : The cash ledger amount associated with the bank worktag. (A-B) Gross Difference : The difference between the balance amounts for reconciliation.	Workday calculates the bank balances based on the latest bank statement upload as described in these scenarios: You uploaded the last statement on March 29, 2022. Workday uses the ending balance on the March 29 statement as the bank balance for the month of March. When you upload the March 31 statement, Workday uses this bank balance for the month of March. If you don't upload a statement for the month of April, Workday uses the ending balance from the March 31 statement. Workday derives the period-end cash balances by bank using the ledger accounts specified in the cash account posting rule. Workday summarizes the total cash balance for all ledger accounts in the rule using the trial balance for each month.
Unreconciled Transactions	Displays the outstanding bank statement lines and operational transactions that aren't reconciled. Each column corresponds to a subreport where you can view the statement line or transaction details: Uncleared Bank Statement Lines : The unreconciled bank statement lines in a prior or current period. Uncleared Operational Transactions : The unreconciled operational transactions in a prior or current period. Workday recommends starting book-to-bank reconciliation after you've resolved all uncleared bank statement lines. See Concept: Management of Unreconciled Items.	Workday displays the bank statement lines and operational transactions that were either never reconciled, or previously reconciled and then later unreconciled.
Transaction Variances	Displays the activities that could cause the discrepancies between the bank statement and ledger balances for the period. Each column corresponds to a subreport where you can view the statement line or transaction details: Cross Period Reconciled Bank Statement Lines : The statement lines in a future period reconciled to operational transactions with an accounting date that's in either the selected or earlier period. Cross Period Reconciled Operational Transactions : The future-period operational transactions reconciled to statement lines with a line date that falls in either the selected or earlier period. Reconcilable Items Stopped, Canceled or Escheated in Future Period : The payments marked as stopped for a specified date range and company. It also includes reconcilable items marked as canceled or escheated for a future period. Non-Operational Transactions : The nonoperational cash journal lines posted to the ledger account in a prior or current period. Payments in Settlement : All settled payments in a prior or current period that are awaiting payment acknowledgment or rejected by the bank. The payments are for bank accounts configured with required payment acknowledgments.	Cross Period Reconciled Bank Statement Lines : You reconcile an operational transaction posted in March with a bank statement line reported in April. When you run this report in March, it displays the April reconciled bank statement lines. Cross Period Reconciled Operational Transactions : You reconcile an operational transaction posted in April with a bank statement line reported in March. When you run this report in March, it displays the April reconciled operational transactions. Reconcilable Items Stopped, Canceled or Escheated in Future Period : You issued and posted a check in March. You then cancel the check in April. When you run the report for March, it displays the canceled (or escheated) check payments in April or a future period. Non-Operational Transactions : You can view the manual journals created with cash ledger accounts and bank account worktags. Payments in Settlement : When the bank confirms they've received payments, Workday removes the payments from this report. For rejected payments, you can either cancel or reprocess the payments.
Summary	An analytic indicator highlights the bank accounts in red that have unexplained differences. Review the detailed Book to Bank Summary subreports to help you determine the root causes.	When you run the summary report and see unexplained differences for the current period, you can run the report for each previous period until there aren't any differences. If you see unexplained differences in the first period that you started using Workday, we recommend that you review your converted bank and trial balances. You can use accounting journals to correct the differences.