Quicken & Reconciliations

1. Quicken & Reconciliations Updated October 2007 Campus Recreation

2. A “Take-off to Success” Guide

3. Entering Transactions in Quicken • Enter all transactions as they occur, with the correct transaction date. • Think of Quicken as your checkbook register. When you go to HEB or Barnes & Noble and write a check or use your debit card, you enter it in your checkbook register so you can reconcile it and balance when you get your bank statement. • The purpose of reconciliation is to make sure Quicken and the Statement of Account balance.

4. Sample Quicken entries.

5. Entering Transactions in Quicken • Use the following codes when entering transactions: • ENC = Encumbrance • DIS = Disencumbrance • PAY = Payment (for purchase order or VP2) • TXFR = Transfer between accounts • DEP = Deposit • PC = ProCard purchase • CBA = CBA Travel Card Purchase • GAS = Transmontaigne Fuel Card Purchase • COR = Correction • BF = Balance Forward (typically only in September) • BOOK = Book 0200 (September only) • BACK = Back 0299 (September only) • REV = Reverse (September only)

6. Other Important Codes • SAT = San Antonio International Airport • IAH = Houston Intercontinental Airport • LAS = Las Vegas / McCarran International • DFW = Dallas / Fort Worth International • CDG = Paris / Charles de Gaulle Airport • LHR = London Heathrow Airport • Oh…you wanted Quicken codes… 

7. Reconciliations: Getting Started • You’ll need: • Statement of Account • Calculator • Ruler / straightedge • Highlighter • Quicken file for that account • Back-up paperwork for the transactions on the Statement of Account

8. Back-up Paperwork • Only provide the back-up paperwork for transactions that have posted on the Statement of Account • Other paperwork needs to stay in the binder for that account • Recurring transactions (like Time Warner Cable, Plant Interscapes, etc.) may have the same amount each month. • Check the service dates to make sure you include the correct paperwork with your packet

9. Checking Transactions in Quicken • Even with the best intentions of entering (into Quicken) all transactions as they occur, sometimes we miss a transaction or two. • Prior to reconciling, check to make sure that all transactions on the Statement of Account have been entered in Quicken. • If something is missing in Quicken but appears on the Statement of Account, find out why it is missing • it could be as simple as not knowing something posted • or it could be an erroneous transaction • the transaction does need to be added to Quicken after you establish the validity and reasoning for the transaction

10. Ready to Go?

11. Sample Statement

12. The Reconciliation Process • Find the Starting Balance (in Quicken) • This is the Quicken balance after the last transaction in the previous month • Find the Ending Balance (in Quicken) • This is the Quicken balance after the last transaction in the statement month • Through this process, you are showing that “the bank” (Statement of Account) matches what your checkbook register (Quicken)

13. Finding Your Starting Balance

14. For October’s statement reconciliation (in November) Use the Quicken balance after the last transaction in September Nov = Oct end balance Dec = Nov end balance Jan = Dec end balance Feb = Jan end balance March = Feb end balance April = March end balance May = April end balance June = May end balance July = June end balance Aug = July end balance Starting Balance Example

15. Starting Balance Exceptions • For September’s statement reconciliation (in October) • Use $0.00 as the Starting Balance • For Thirteenth Month statement reconciliation (in September) • Use the Quicken balance after the last transaction in July as the Starting Balance

17. For October’s statement reconciliation (in November) Use the Quicken balance after the last transaction in October Sept = Sept end balance Nov = Nov end balance Dec = Dec end balance Jan = Jan end balance Feb = Feb end balance March = March end balance April = April end balance May = May end balance June = June end balance July = July end balance Aug = Aug end balance Ending Balance Example

19. Ending Balance Exception • For Thirteenth Month statement reconciliation (in September) • Use the Quicken balance after the last transaction in August

20. Reconciliation Steps • Proceed once you have • Checked to make sure all transactions on the Statement are in Quicken • Found the Starting Balance • Found the Ending Balance • Click Reconcile on the Quicken screen • Follow the prompts from the next screens.

22. Reconciliation Steps • Note that the New Statement Ending Datemust be the same date as the Statement of Accounts date. • The New Statement Ending Date must not be today’s date. • Do not enter anything in Section 2 in the Statement Summary window.

25. Reconciliation Steps • Check off the transactions that have posted to the Statement of Account. • The cleared balance on this screen should match the balance on the Statement of Account. • Click Finished.

28. Balance Adjustment • If there is outstanding activity, Quicken will try to “help” you balance with 1 or 2 balance adjustments. • Keep this date as today’s date. • After completing the reconciliation, you will delete this adjustment. • Using today’s date helps you find the adjustment much easier.

32. Reconciliation Steps • Add title of account. • Change Show Reconciliation to Bank Balance as of date to the Statement of Account date. • Change Transactions to Include to All Transactions. • Click the printer icon.

34. Reconciliation Steps • Select your printer (or go to Printer Setup if needed). • Select landscape orientation (it is easier to read and keeps the page orientation the same as the Statement of Account). • Select All in the Print Range. • Click OK.

36. Reconciliation Steps • You can see where Quicken added the balance adjustment(s) to the account in Quicken. • The balance adjustment(s) is/are included as reconciled / cleared transactions. • A later step will show you how to delete the balance adjustment(s).

38. Balancing Your Reconciliation • Find Ending Balance of Bank Statement on Page 1 of the Reconciliation Summary. • Find Total Uncleared Transactions at the bottom of the Uncleared Transaction Detail up to (Statement Date) and highlight it. • If this number is positive, you will subtract it in the next step. • If this number is negative, you will add it in the next step.

39. Balancing Your Reconciliation • Add/Subtract (as appropriate) the Total Uncleared Transactions figure to the Ending Balance of Bank Statement figure. • The total amount should match the free balance on the Statement of Account. • If it is correct, highlight the total.

40. If the Reconciliation Doesn’t Balance • Did you use the statement date as the balance to the bank date? (It should not be any date except the statement date.) • Did you use the correct starting balance? • Did you use the correct ending balance? • Do any transactions in Quicken that you cleared have transaction dates after the statement date? • Was a transaction entered as a debit when it was a credit (or vice versa)? • Did you “clear” a transaction by mistake? • You will need to unreconcile transactions that you just cleared and re-do the reconciliation.

41. What Do I Do Now? • Delete the balance adjustment(s) that was/were just added in Quicken • Find the appropriate back-up paperwork in the binder for this account. • Only include paperwork for transactions on the statement. • If paperwork is missing, contact the staff member responsible for that account (who spends from it) and/or the requestor for that purchase.

46. What Is Appropriate Paperwork? • Department copy of the Purchase Order • Cover sheets from DEFINE for • VP2s • VP5s • VE5s & VE6s • VT2s & VT5s • Telephone bill from Telephone Services • Copy of bill from mobile phone provider • Copies of bills from vendors • Copies of OV1s for hourly employee payroll • Copies of Deposit Transmittal Forms • Others?

47. Submit Your Reconciliation • Create a packet: • Statement of Account • Reconciliation Report (all pages) • Back-up paperwork • Highlight the balance on the Statement of Account • Mark your name as the Reconciler and the date. • Submit the packet to your reviewer for their review, signature and date.

48. Your reconciliation is complete. Congratulations!