1. Make sure you have entered all checks, deposits, bank charges and bank credits, and any other adjustments effecting the bank account into your Journals.
2. Make sure all checks, deposits, and adjustments from your Journals have been posted to their respective bank accounts in the general ledger. Do this by selecting "Post Checks" or "Post Deposits" from the Banking menu. (Also post any adjustments you may have made to the bank account through the General Journal.)
3. Select "Mark Checks Cleared by Bank" or "Mark Deposits Cleared by Bank" from the Bank Reconciliation menu. Then select the bank account number to reconcile and the month to reconcile. This will produce a list on the screen of all Outstanding checks and/or deposits, depending on your selection. Two columns are provided on the list, one for items not yet marked as cleared and, a blank column into which items will be moved as you select them for clearing.
4. Look on your Bank Statement for the list of checks and deposits the bank shows as cleared. Make sure the amount of the check or deposit on the bank statement agrees with the amount shown on your list. If it differs you must correct the amount on your books (assuming the error was made by you and not by the bank) by an adjusting entry made through either the Check Journal or Deposit Journal. If there are amounts in error or there are charges or credits on the bank statement which you have not yet entered into you Journals and posted you must exit the Reconciliation process and make the appropriate entries and postings before attempting to complete the bank reconciliation process.
5. When all the amounts agree, all the adjustments have been entered, and the Journals have been posted to the general ledger, move each cleared check and/or deposit from the Outstanding column to the Cleared column by clicking on the item in the Outstanding list. If you make a mistake you can move an item back to the Outstanding list from the Cleared list by clicking on the item in the Cleared list.
6. When you have finished marking the cleared items click the SAVE button.