Quicken

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Quicken Reconciliations

• Updated October 2007
• Campus Recreation

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A Take-off to Success Guide
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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.

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Sample Quicken entries.
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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)

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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
• Ohyou wanted Quicken codes ?

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Reconciliations Getting Started

• Youll need
• Statement of Account
• Calculator
• Ruler / straightedge
• Highlighter
• Quicken file for that account
• Back-up paperwork for the transactions on the
  Statement of Account

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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

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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

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Ready to Go?
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Sample Statement
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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)

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Finding Your Starting Balance
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Starting Balance Example

• For Octobers 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

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Starting Balance Exceptions

• For Septembers 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

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Ending Balance Example

• For Octobers 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

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Ending Balance Exception

• For Thirteenth Month statement reconciliation (in
  September)
• Use the Quicken balance after the last
  transaction in August

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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.

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Reconciliation Steps

• Note that the New Statement Ending Date must be
  the same date as the Statement of Accounts date.
• The New Statement Ending Date must not be todays
  date.
• Do not enter anything in Section 2 in the
  Statement Summary window.

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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.

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Balance Adjustment

• If there is outstanding activity, Quicken will
  try to help you balance with 1 or 2 balance
  adjustments.
• Keep this date as todays date.
• After completing the reconciliation, you will
  delete this adjustment.
• Using todays date helps you find the adjustment
  much easier.

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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.

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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.

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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).

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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.

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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.

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If the Reconciliation Doesnt 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.

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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.

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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?

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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.

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Your reconciliation is complete.

• Congratulations!