Bank Reconciliation process design for ERP

This process may give an overview to solve Bank Reconciliation in ERP environment. However, Process may vary from enterprise to enterprise.

Activities	Prerequisite	Input	System processing	Output	Accounting	Generic business rule
Upload a bank statement	The bank, bank branch, bank account & bank trx codes should have been defined.	Soft copy of the bank statement	Records the bank statement details. Bank statements in Prescribed format will be uploaded	Bank statement created in Cash Management module.	None	None
Run auto reconciliation process	Bank statement should have been imported / entered manually in the Cash Management module.	Trigger the auto reconciliation process by providing the mandatory parameters	Automatically reconciles the Payables / Receivables transactions  with the corresponding statement lines based on the transaction number.	Bank statement reconciled with Payables / Receivables transactions.	None	None
Review unreconciled items	Auto-reconciliation process should have been completed	The Auto reconciliation execution report provides details of transactions which have not been reconciled in the auto reconciliation process.	None	The unreconciled transactions have been  identified & reviewed.	None	None
Manually Adjust / reconcile unreconciled items where required	Unreconciled transactions have been reviewed by the Finance Team.	Unreconciled transactions from the auto reconciliation execution report.	Transactions unreconciled during the auto reconciliation process will be manually reconciled.	Unreconciled transactions are reconciled.	None	Most of the transactions originating from Oracle System will get automatically reconciled, except transactions which are originating from the bank
Create Miscellaneous receipts for transactions originating from Bank	Transaction originating from the bank in bank statement	Miscellaneous Receipt creation	Enter receipt details with appropriate receivables activity to account for these transactions	Miscellaneous receipt created	Dr. Bank Charges             Cr. Bank Account	The following could account for Transactions originating from the Bank. Bank charges & Bank Interest
Generate GL reconciliation report	All statements in Cash Management should be reconciled, All entries from Payables / Receivables should have been transferred to General ledger.	Run the GL Reconciliation Report	Generates the GL Reconciliation Report	GL Reconciliation Report	None	The bank account should reconcile in GL and CM after posting to GL has been completed