Home > Eclipse, Financial Accounting, OpenERP, Postgresql, Python > Enter a Bank statement in Openerp and Its Bank Reconciliation with Invoices:

Enter a Bank statement in Openerp and Its Bank Reconciliation with Invoices:

I assume that viewer of this post have studied my first and second posts, I will continue using same example I have used in mention two post.

Previous example overview:

List of Suppliers partners: Ahmad, Asif, Dawood & Co, Naeem and Saleem & Co.

List of Customers partners: Crown & Co, Naseem & Co, Rafiq & Sons and Rizwan & Co

we have enter some supplier invoice using supplier partners, and similarly some customers invoices using some customers partners. Above invoices both of supplier and customers were based on accrual. The invoices status was open.

After these accrual basis accounting impact we receipt Rs. 3000 and Rs. 6000 from two customers Naseem & Co and Rafiq & Sons respectively in Bank Acc 123. we reconcile receipt voucher with customers invoices. The these two customers invoice status becomes done. Similarly we also make payment of Rs. 2000, Rs. 2500 and Rs. 1000 to our supplier Asif, Dawood & Co and Naeem respectively. After reconciliation the status of these three supplier invoice were also becomes done.

This was the preview of example we used;

Following are the some snaps , so that you can understand the account balances, partner balances, invoices status (open or done). After these snaps we will continue our topic.

Snap of account balances:

Trial Balance

Snap of partner balances:

Partner Balances

Snap of Customer & Supplier invoice:

Invoices with its Status

Balance of Acc Receivable and Acc Payable from partners and trial balance:

Account Partner Balance
Suppliers
Ahmad 5500
Saleem & Co 1500
Acc Payable 7000 (Cr Balance)
Customers:
Crown & Co 3000
Rizwan & Co 3000
Acc Receivable 6000 (Dr Balance)

Suppose:

We have received two cheque of Rs. 3000 from customers in Bank Acc 123 and make two cheque Payment sum of Rs. 7000 to customers from Bank Acc 123. Suppose these transaction are not recorded in books of account till last date of months, and we have received a bank statement from bank at the last date of month.

Manual Bank Statement:

Following bank statement received at the last date of month.

Date Narration Dr Cr Balances
1 OB 13500
2 Crown & Co 3000 16500
3 Rizwan & Co 3000 19500
4 Ahmad 5500 14000
4 Saleem & Co 1500 12500
30 CB 12500

Banks Statement in Openerp and its reconciliation:

Process of entering the bank statement and its reconciliation with actual invoices will be done at same step. Steps are;

Step 1:

Access ‘Entries By Statement’ from Financial Management → Entries Encoding → Double Click on Entries by Statements → Click New Button.

Entries By Statement

Step 2: Enter the follow data in Entries by statement.

Name: Will be auto select in our case: St. 12/1812.

Date: Enter the bank statement date: 10/31/2010

Journal: Select the bank book: Bank Book( of Acc 123)

Period: Respected period according to selected date and its entries: 10/2010

Starting Balance: Opening Balance of Manual Bank Statement: 13500.00

Ending Balances: Closing Balance of Manual Bank Statement: 12500.00

Step 3: In Entries encoding tab, and press new;

3.1: Entry of Crown & Co

Enter the following data of Crown & Co from manual bank statement.

Date: 10/01/2010

Name: Cheque Receipt

Type: Customer

Partner: Crown & Co

Account: 13 Acc Receivable

Amount: 3000

Reconcile: This text box is used for reconciliation;

Following are the steps of reconciliation of that Crown & Co entry.

a. Press F2 at reconcile text box, a new window will appear. Press New Button of this new window.

b. In new window, select the Crown & Co acc receivable entry of 3000 from entries list.

c. Balances below the entries tag shown like: Debit 3000 and Credit 0.

d. Click button of Compute at bottom of form.

e. After step d; balances below the entries tag shown like: Debit 3000 and Credit 3000.

f. Press ok.

Crown & Co Entry

Crown & Co Reconcile Entry

3.2: Entry of Rizwan & Co

Enter the following data of Rizwan & Co from bank statement.

Date: 10/03/2010

Name: Cheque Receipt

Type: Customer

Partner: Rizwan & Co

Account: 13 Acc Receivable

Amount: 3000

Reconcile: This text box is used for reconciliation;

Following are the steps of reconciliation of that Rizwan & Co entry.

a. Press F2 at reconcile text box, a new window will appear. Press New Button of this new window.

b. In new window, select the Rizwan & Co acc receivable entry of 3000 from entries list.

c. Balances below the entries tag shown like: Debit 3000 and Credit 0.

d. Click button of Compute at bottom of form.

e. After step d; balances below the entries tag shown like: Debit 3000 and Credit 3000.

f. Press ok.

Rizwan & Co Entry

Rizwan & Co Reconcile Entry

3.3: Entry of Ahmad

Enter the following data of Ahmad from bank statement.

Date: 10/04/2010

Name: Cheque Paid

Type: Supplier

Partner: Ahmad

Account: 12 Acc Payable

Amount: -5500.00 (note this figure is in negative)

Reconcile: This text box is used for reconciliation;

Following are the steps of reconciliation of that Ahmad entry.

a. Press F2 at reconcile text box, a new window will appear. Press New Button of this new window.

b. In new window, select the Ahmad acc payable entry of 5500 from entries list.

c. Balances below the entries tag shown like: Debit 0 and Credit 5500.

d. Click button of Compute at bottom of form.

e. After step d; balances below the entries tag shown like: Debit 5500 and Credit 5500.

f. Press ok.

Ahmad Entry

Ahmad Reconcile

3.4: Entry of Saleem & Co

Enter the following data of Saleem & Co from bank statement.

Date: 10/04/2010

Name: Cheque Paid

Type: Supplier

Partner: Saleem & Co

Account: 12 Acc Payable

Amount: -1500.00 (note this figure is in negative)

Reconcile: This text box is used for reconciliation;

Following are the steps of reconciliation of that Saleem & Co entry.

a. Press F2 at reconcile text box, a new window will appear. Press New Button of this new window.

b. In new window, select the Saleem & Co acc payable entry of 1500 from entries list.

c. Balances below the entries tag shown like: Debit 0 and Credit 1500.

d. Click button of Compute at bottom of form.

e. After step d; balances below the entries tag shown like: Debit 1500 and Credit 1500.

f. Press ok.

Saleem & Co Entry

Saleem & Co Reconcile

Step 4:

Click Compute button of entries by statement; this step will create the ending balance of bank statement in openerp. If openerp bank statement closing balance and manual bank statement closing balance is same then we consider that we have enter the bank statement correctly.

Bank Statement in Openerp

Step 5:

Click Confirm button of entries by statement; this step will create the actual accounting entries (Receipt voucher from customers and payment voucher to suppliers) in respected ledger.

Note: Again if you already have entered these entries before entry by statement then in ledger you will fined the double impact. So entries by statement automatically enter the accounting voucher, you don’t need to enter these voucher by entries encoding by move.

Result:

Snap of account balances:

Trial Balance After Bank Statment and Its Reconciliation

Snap of partner balances:

Partner Balances After Bank Statment and Its Reconciliation

Snap of Customer & Supplier invoice:

Invoices After Bank Statment and Its Reconciliation

  1. February 1, 2012 at 3:06 am

    Hi Mohsin, Outstanding post. I would like to point out a correction for you in the Suppose section:

    We have received two cheque of Rs. 3000 from customers in Bank Acc 123 and make two cheque Payment sum of Rs. 7000 to (<<—Correction) from Bank Acc 123. Suppose these transaction are not recorded in books of account till last date of months, and we have received a bank statement from bank at the last date of month.

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