# T1TW RECONCILIATION (Andrew)

[TOC]

## Purpose
The purpose of the reconciliation is to ensure that the bookkeeping between JCK and QBO are the identical; factoring in items that are QBO specific and timing differences.

## Reconciliation Spreadsheet
- The spreadsheet has been setup to allow data from the ‘General Ledger’ from both JCK and QBO to be entered.
- Refreshing the pivot tables will output the balance sheet and profit & loss.
- Discrepancies between QBO & JCK will be highlighted in ‘red’ under the ‘post-adj. discrepancies column
- The aim of the reconciliation is to determine the reasons for the discrepancies and make the necessary adjustments so that the column become ‘green’ under the ‘post-adj. discrepancies column.
- Possible adjustments include:
- Timing differences
- This is where JCK enters a transaction in a different month compared to QBO. The transaction is still present but appears in different months.
- A temporary adjustment on the spreadsheet for QBO will be made either by temporary removing it on the reconciliation spreadsheet or adding it in; depending on JCK’s timing. Once both sides have recognised the transactions, the temporary adjustment is reversed.
- QBO specific
- There are a few items that are only recognized by QBO and not JCK. Items such as Accrued Revenue and Credit Notes.
- An adjustment on the spreadsheet for QBO is made by removing the transaction.
- Error
- If a transaction is found to be missing or entered in error, then this is added or deleted from QBO directly. In the case it is JCK, we will email them the information so they can make the necessary adjustments.
## Currencies Revaluation
- Currencies revaluation is carried out on QBO to match the rates used by JCK.
- Go to Settings
- Select ‘Currencies’.
- Locate the currency to be adjusted.
- Under action, select ‘revalue currency’
- Enter last day of the month for the ‘revalue date’.
- Click on custom rate and enter the rate according to JCK’s ‘FCT revaluation’ tab.
- Select the accounts that the new rate will affect.
- Note – Different rates are used for bank and loans.

## Data Entry
* For QBO, download the following reports for only the month that you are working on:
* Balance Sheet
* Profit and Loss
* General Ledger – this is the transaction data to be transferred to the reconciliation spreadsheet.
* For JCK, refer to ‘GL Tab’
* Formatting of the general ledger and GL tab is required before transfer.
* ‘Select All’ Cells
* Right click and ‘wrap text’ and ‘Merge cells’
* Copy each transaction line from each category to either the Balance sheet tab or Profit and loss tab depending on its category.
* Categorisation of 4 additional columns is required.
* Note:
* Do not transfer the beginning balance as these are carried forward from previous month data entries.
* Only transfer the month that is being worked on.

## Balance Sheet and Profit & Loss Checks
- Before proceeding with any adjustments, ensure that the data transferred over is correct by comparing the balance sheet and profit & loss to the ‘Pre’ column total on the spreadsheet.
- Note
- All VAT related transactions for the purpose of the spreadsheet are placed in 1 category under current liability.
- Any VAT related transactions that are originally an asset will need to be reversed from a positive to a negative when translated over the liability.

## ADJ.
- The ‘ADJ’ tab relates adjustments that do not affect the overall profit and loss but to mismatch in categorisations.
- i.e. Being categorised in Supplies & Pantry instead of Meals and Entertainment.

## TEMP. AJD.
- The ‘TEMP. AJD’ tab relates to the temporary adjustment that are entered due to timing differences.

## DEPCREPANCIES
- Comparing each category from the balance sheet with data from QBO and JCK will reveal any differences in transactions.
- By looking at the individual transactions in QBO and the ‘JL’ tab from JCK, the reason for the discrepancies can be determined.
- Using ‘T’ tables and the concept of double entry, the adjustments are noted on the tab based on the type of discrepancies (as previously discussed).

## Summary Adjustments
- Any timing difference and QBO specific adjustments that have been identified should be entered under the ‘ADJ.’ column on the ‘Summary’ tab of the spreadsheet.