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Prepare Bank Reconciliation
Finance Policy 009
1. PURPOSE
Reconciliation of bank accounts balances and make adjustments in General Ledger record.
2. APPLICABILITY
2.1. All bank accounts balances.
3. DEFINITIONS
3.1. N/A.
4. POLICY
  • 4.1. Reconciliation of bank accounts balances and adjustments should be submitted and approved maximum before the 10th of next month.
  • 4.2. Reconciliation of bank accounts balances should be approved according to authority matrix into the system.
5. PROCEDURE
  • 5.1. After receiving the bank statement (hard copy or soft copy) the general ledger accountant enters/uploads the bank statement items in the general ledger system under the account of this bank, and reconciles the items of the received bank statement with payables and receivables in, and cash management sup-ledger systems, if reconciliation is incomplete and there are variances between the bank statement and system transactions:
  • 5.2. If the variances are due to reasons from the bank side, the accountant of general ledger excludes these items from the reconciliation process, and contacts the bank regarding these variances.
  • 5.3. If the variances are due to internal reasons, the accountant of general ledger corrects these variances by establishing new transactions in the system and reconciling these transactions with the variance items, and then submits the transactions to the Manager Finance for review.
  • 5.4. The accountant general ledger verifies the reconciliation done and approves it in the system, then submits it to the manger finance for review.
  • 5.5. The manager finance reviews and approves the bank reconciliation.
6. RESPONSIBILITIES
  • 6.1. The accountant of general ledger responsibility is reviews and creates reconciliation in the system.
  • 6.2. The manager finance reviews and approves the reconciliation in the system.
7. APPENDICES
  • 7.1. Process graphic: Prepare Bank Reconciliation (Appendix A.)
  • 7.2. Process steps: Prepare Bank Reconciliation (Appendix B.)
8. REFERENCES
8.1. N/A
9. DEVELOPMENT TEAM
  • 9.1. Accountant, Financial Control
  • 9.2. Accountant, Treasury
  • 9.3. Accounting, Financial Accounting