Advanced Bank Reconciliation Tool

The Advanced Bank Reconciliation Tool provides enhanced capabilities for matching bank transactions with accounting entries in NexWave. It offers both automatic and manual reconciliation options with support for multiple document types.

Overview

This addon extends the standard bank reconciliation functionality with:

• Intelligent matching across multiple document types

• Auto-reconciliation for bulk processing

• Manual reconciliation with flexible voucher selection

• Journal Entry and Payment Entry creation directly from bank transactions, with full support for cost centres, projects, and accounting dimensions

• Configurable defaults for reconciliation action, document type, and journal entry type

• Bank Rules for automating recurring transaction patterns

• Multi-currency support for international transactions

Prerequisites

Before using this tool:

• Bank accounts must be set up in NexWave

• Bank statement transactions should be imported (via Bank Feeds or Import Bank Statement)

• GL accounts should be properly configured for journal entries

• If using accounting dimensions (e.g., Location, Department), ensure they are configured in Accounting Dimension setup with the correct mandatory rules per company

Accessing the Tool

Navigate to Accounting > Bank Reconciliation Tool.

Configuration

Default Actions

Before starting reconciliation, you can configure default behaviour in Settings > Advanced Bank Reconciliation Settings.

These defaults are particularly useful for organisations where most transactions are handled the same way. For example, donation-based organisations can set the default to "Create Voucher" with "Journal Entry" to skip the voucher matching step entirely.

Step-by-Step Guide

1. Select Bank Account and Date Range

1. Select your Company

2. Choose the Bank Account to reconcile

3. Set the From Date and To Date for the statement period

4. Optionally, check Filter by Reference Date to filter by the reference date on transactions instead of the transaction date

2. View Unreconciled Transactions

Once filters are set, click Get Unreconciled Entries. The tool displays all unreconciled bank transactions showing:

• Date and Bank Transaction reference

• Description

• Reference Number, Particulars, Code, and Bank Party (from the bank statement)

• Deposit/Withdrawal amount

• Current unallocated amount

3. Reconcile a Transaction

Click the Actions button on any unmatched transaction to open the reconciliation dialog. The dialog shows:

• Transaction Details at the bottom: Date, Deposit/Withdrawal, Bank Party, Reference Number, Description, Particulars, Code, and the current Allocated/Unallocated amounts

• Three available actions: Match Against Voucher, Create Voucher, or Update Bank Transaction

The default action is determined by your ABR Settings configuration.

Match Against Voucher

Select document types to search for matching vouchers:

Use additional filters (Customer Group, date range, inline column filters) to narrow results. Select one or more vouchers, then click Reconcile to confirm the match.

The tool ranks matches based on reference number, amount, and party information.

Create Voucher

If no matching voucher exists, create one directly from the dialog:

Journal Entry:

1. Select Create Voucher and choose Journal Entry

2. Select the Journal Entry Type (e.g., Bank Entry)

3. Choose the second account (income, expense, etc.)

4. Optionally set Party Type and Party (for non-receivable/payable accounts, the party is stored as a reference on the journal entry line)

5. Set Cost Centre, Project, and any accounting dimensions (e.g., Location)

6. Click the primary action to create and reconcile, or use Edit in Full Page to open the full form

Payment Entry:

1. Select Create Voucher and choose Payment Entry

2. Set Party Type (mandatory) and Party

3. Set Cost Centre, Project, and any accounting dimensions

4. Click the primary action to create and reconcile, or use Edit in Full Page to open the full form

All configured accounting dimensions appear automatically in the dialog based on your system's Accounting Dimension setup. Cost Centre and Project are available for both Journal Entries and Payment Entries.

Update Bank Transaction

Use this option to update the reference number or party information on the bank transaction itself without creating or matching any voucher.

4. Bulk Reconciliation

The tool provides two bulk reconciliation options under the Reconcile button group:

Run Bank Rules: Applies configured bank rules to automatically create and reconcile vouchers for transactions that match rule conditions. Rules are processed in priority order. This is ideal for recurring transactions with predictable patterns (e.g., regular expenses, known vendors).

See Bank Rules for setup instructions.

Auto Reconcile: Automatically matches unreconciled bank transactions against existing Payment Entries and Journal Entries based on reference numbers, amounts, and party information. This is useful when payments have already been entered manually and just need linking to bank transactions.

Recommended workflow: Run Bank Rules first (to create entries for known patterns), then Auto Reconcile (to link any manually-created entries).

5. View Reconciled Transactions

The bottom section shows all reconciled transactions with:

• Date and Bank Transaction reference

• Party (derived from the linked voucher, including party references stored on Journal Entry lines)

• Particulars, Code, and Reference from the bank statement

• Deposit/Withdrawal amounts

• Payment Document type and link

• Allocated amount

• Unreconcile button to reverse the match

To unreconcile a transaction, click Unreconcile. You can choose to:

• Unreconcile Only - removes the link but keeps the Payment Entry/Journal Entry

• Unreconcile and Cancel PE/JE - also cancels the linked documents

Tips for Efficient Reconciliation

1. Configure defaults in ABR Settings to match your most common workflow

2. Set up Bank Rules for recurring transactions to automate the majority of reconciliation

3. Import statements regularly to keep transactions current

4. Use reference numbers consistently for automatic matching

5. Run Bank Rules first, then Auto Reconcile, then handle exceptions manually

6. Filter by reference date when matching against document dates rather than bank statement dates

Troubleshooting

No matching vouchers found

• Verify the date range includes the voucher posting date

• Check if the voucher has already been fully allocated

• Ensure party information matches between transaction and voucher

Transaction shows as partially reconciled

• The bank transaction amount may be split across multiple vouchers

• Check if the full amount has been allocated

Auto-reconcile not matching expected items

• Verify reference numbers match exactly

• Check currency matches between transaction and voucher

• Ensure vouchers are in submitted (docstatus=1) state

Accounting dimension errors when creating vouchers

• Ensure the dimension is configured as mandatory for the correct company in the Accounting Dimension setup

• NexWave validates dimensions during voucher submission, so missing mandatory dimensions will be flagged

Related Documentation

• Import Bank Statement - For manually importing bank statements

• Bank Feeds - For automatic bank transaction synchronisation

• Bank Rules - For automating recurring transaction reconciliation

• Accounting - Payment Entries and Journal Entries