The reconciliation summary varies by region to be compliant with local regulations. The default report is based on Australian Uniform Law and meets the requirements of most jurisdictions except New Zealand.
Default Format
Trust account balance as-at {date}
This is the amount entered as the “Closing balance” when you created the bank reconciliation.
Add outstanding deposits
This is the amount entered in the “Adjustments” section of the bank-rec where you selected an item as an outstanding deposit.
Add adjustments
This is other positive adjustments (other than outstanding deposits) as per the adjustments section of the bank-rec.
Sub total (first instance)
This is the sum of the first three values
Less unpresented payments
This is the amount entered in the “Adjustments” section as “unpresented payments”
“Less adjustments”
This is the other negative adjustments (other than unpresented payments) from the adjustments section of the bank-rec.
Sub total
This is a sum of the “Less adjustments”
Reconciled cash book balance
This is the first “Sub total” minus the second “Sub total” which is essentially what you have reconciled Actionstep to.
System cash book balance
This is the balance of all data (not just that in the bank-rec) as at the closing date.
Variance
Difference between the “Reconciled” and “System” cash book balances.
This difference occurs when:
→ You have made an adjustment as part of a particular reconciliation, AND
→ The adjustment has not been accounted for in a subsequent reconciliation, as at the point in time for which you generate the report.
New Zealand Format
An example to demonstrate the concept above
You are reconciling the June period, and enter in an adjustment on the 1st of July. If you were to run the reconciliation summary report, you would see a variance of the adjustment amount (assuming all other variables remain constant).
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A week later, you reconcile the 1st week of July. Assuming there are no further adjustments, this variance will now be a zero balance for this particular reconciliation, as well as previous ones, because all adjustments have been accounted for.
The term “Cash book” does not refer to the “Cash book” reports, it is purely a generic accounting term to describe the balance in actionstep as opposed to the bank account (Actionstep being a “Cash book”).