Bank reconciliation

Under voting is understood in accounting a process that brings data from different accounts or account groups in accordance.

The double-entry records the value of each booking at several places simultaneously. An example: When you post an incoming invoice various accounts in the target and have addressed and posted by the same amount; the statement appears as an open item from a supplier account in the subsidiary ledger and is also carried as a liability in the general ledger. The incoming invoice in Accounts Payable of the receiver corresponds to the output statement in the accounts receivable department of the sender. The balances of all associated parts of the entire system be checked routinely. If they do not match, the error must be identified and corrected. Voting can be done by comparing the items, aggregated values ​​or check digits.

Inconsistencies within an accounting system can occur due to currency or rounding differences or technical errors. For the vote of separate systems, for example, errors in the data transmission in manual postings and temporal shifts, the cause of deviations can be. Also objective reasons are possible, such as when an invoice to the recipient is not accepted and returned.

The vote is successful if both sides show identical values ​​or the deviation is within defined limits. Larger differences are eliminated by adjustment postings. Is it a regular correction is no longer possible in the same accounting period may accruals are needed to correct the values ​​of the balance sheet and the profit and loss account. If the deviations are intentional or unrecoverable, an explanation and documentation is necessary for reasons of orderly accounting.

• Accounting