Bank Reconciliation¶

Reconciliation attestations¶

Use Add Reconciliation in a bank account's More Actions menu. The account's Reconciliations tab lists saved records.

Select a bank account and accounting period (YYYY-MM), then load its month-end balances. The bank account is preselected when opening Add Reconciliation from More Actions. The reconciliation compares statement closing balance directly with cumulative register cash through month end. Unallocated bank activity is diagnostic only and is not added to register cash. The suggested bank balance comes from available feed observations; confirm or replace it with the statement closing balance. If book cash changes before saving, reload the balances and attest again.

Enter notes explaining any bank-to-book difference, optionally attach a statement or select an existing statement document, and confirm the attestation. Save records the balances, difference, notes, statement references, user, and time in one step. Every genuine posted bank transaction through month end must be fully allocated before saving, including earlier outstanding activity. Offsetting unallocated deposits and withdrawals still block attestation even when their net is zero. Excluded feed rows do not count. A nonzero bank-to-register timing difference is allowed when explained in notes. The application records the user's attestation; it does not independently prove that the difference has been resolved.

Statement documents are optional and belong to the bank account. Uploading one does not import transactions. Saved attestations retain the amounts used at the time; later ledger changes do not recalculate them. Currency and cash ledger account come from the bank account. Saved attestations cannot be edited or removed. Statement documents retain their normal lifecycle.

The existing daily transaction/register checks remain diagnostic calculations, separate from the saved attestation. Both use transaction/posting dates. The daily diagnostic adds unallocated activity to explain a balance gap; the saved attestation requires that activity to be resolved and compares bank cash with register cash.

Daily reconciliation diagnostic¶

Overview¶

Bank Reconciliation compares each bank account’s recorded balances to cleared bank activity and to the Credence cash register. Use it to confirm that daily bank balances line up with posted transactions, and that the books (ledger activity plus any remaining unallocated bank activity) still match the bank’s ending balance.

The page is a diagnostic view. When something does not reconcile, resolve the underlying bank activity on the Bank Feed (allocate, exclude, or correct matches) and confirm account setup on Bank Accounts.

Definitions¶

• Beginning balance — The bank’s balance at the start of a day, derived from stored bank balance history for that account.
• Ending balance — The bank’s balance at the end of a day, derived from the same balance history.
• Transaction sum — The net of all posted bank transactions dated on that day (deposits positive, withdrawals negative).
• Money in / money out — The day’s deposits and withdrawals separately. Money in is the sum of positive amounts; money out is the sum of negative amounts.
• Transaction reconciliation — Checks whether beginning balance plus the day’s transaction sum equals ending balance.
• Register balance — The cumulative Credence ledger balance for the bank account’s cash account on that property, through the given date.
• Unallocated transaction sum — The cumulative amount of posted bank transactions that are not fully allocated and not excluded, through the given date.
• Register reconciliation — Checks whether register balance plus cumulative unallocated transactions equals ending balance.
• Post date — The date Credence uses to place a bank transaction on a reconciliation day. Posting date is preferred; if it is missing, transaction date is used.

Rules and Behavior¶

Scope and period¶

• Accounts shown follow your property selection. When properties are selected, Credence includes bank accounts on those properties and one level of parent entities. When only entities (non-properties) are selected, Credence does not walk the hierarchy further.
• Accounts are grouped by owning property or entity name.
• The reconciliation period runs from the report as-of date through yesterday. If no as-of date is set, the period starts on the first day of the current month.
• Days are listed newest first after calculations are complete.

Which transactions count¶

• Only posted (cleared) bank transactions are included. Pending activity is ignored, consistent with the Bank Feed.
• Transactions are assigned to a day by post date (posting date when available, otherwise transaction date).
• A day with no posted transactions is treated as a zero transaction sum for the transaction check when beginning and ending balances exist.
• Transactions dated on or before the period end contribute to cumulative unallocated totals, including activity before the period start.

Balances and balance type¶

Each bank account has a balance type that controls how Credence reads a day’s beginning and ending balances from bank balance history:

• Beginning Balance accounts (common for connected feeds such as Plaid): the stored balance for a day is treated as that day’s beginning balance. Ending balance comes from the next available later balance (so weekends and other non-balance days can still close out).
• Ending Balance accounts (common for many file imports): the stored balance for a day is treated as that day’s ending balance. Beginning balance comes from the most recent earlier balance.
• If balance type is unknown, Credence uses the ending-balance reading.

If a day is missing the balances needed for a check, that day shows Insufficient Data for that check.

Account statuses¶

Each account shows two summary statuses:

The same three outcomes apply per day for Transaction Reconciliation and Register Reconciliation. A non-zero day shows the dollar difference.

Exclusions and allocation¶

• Excluded transactions do not contribute to the unallocated transaction sum used in register reconciliation.
• Partially allocated transactions contribute only their remaining unallocated amount. Withdrawals keep a negative sign in that total so register math stays consistent with bank direction.
• Fully allocated posted transactions contribute to the day’s transaction sum but not to unallocated amounts.

Register reconciliation does not require every transaction to be allocated. Unallocated posted activity is intentionally part of the formula so the bank ending balance can still match books plus remaining feed activity.

Calculation Details¶

Transaction reconciliation (per day)¶

When both beginning and ending balances exist:

Transaction difference =
  Ending balance − (Beginning balance + Transaction sum)

• Reconciled when the difference is 0.
• A missing beginning or ending balance yields Insufficient Data (no difference calculated).
• Missing transaction activity is treated as 0 for that day.

Register balance (cumulative)¶

For each day, Credence totals active ledger entries tied to the bank account’s external cash account and property, dated on or before that day. Entry dates prefer the related bank transaction’s posting date, then transaction date, then the ledger bundle’s posting date.

Daily ledger movement is the sum of debit minus credit for entries on that day. The register balance shown for a day is the cumulative total of those movements through that day, including ledger activity before the selected period start.

Unallocated transaction sum (cumulative)¶

Daily unallocated (non-excluded) =
  remaining unallocated amount,
  signed negative when the bank transaction amount is negative

The unallocated sum shown for a day is cumulative through that day, including unallocated activity before the period start.

Register reconciliation (per day)¶

When an ending balance exists:

Register difference =
  Ending balance
  − (Cumulative register balance + Cumulative unallocated transaction sum)

• Reconciled when the difference is 0.
• No ending balance yields Insufficient Data.

How the two checks differ¶

A day can pass one check and fail the other. For example, bank activity may roll correctly day to day while the register is still short because ledger posting or allocation is incomplete.

Common Scenarios¶

Operating account balances cleanly after rent deposits clear¶

A property operating account receives tenant ACH deposits that post on the 1st. Beginning balance plus that day’s transaction sum equals ending balance, and allocated deposits have already posted to the cash register. Both Transaction Reconciliation and Register Reconciliation show Reconciled for that day.

Vendor payment clears but is not yet allocated¶

A contractor draw clears the bank and appears as a posted withdrawal. Transaction reconciliation can still pass if the bank’s beginning and ending balances absorb that withdrawal. Register reconciliation may show a difference until the withdrawal is allocated on the Bank Feed (or intentionally excluded if it should not hit Credence charges). Until then, the unallocated amount remains in the cumulative unallocated sum so you can see how much of the bank balance is not yet on the books through allocations.

Weekend or holiday with no bank balance row¶

Connected accounts often skip balance snapshots on non-business days. Credence bridges beginning/ending balances using the nearest earlier or later balance, depending on the account’s balance type. Days that still lack a usable beginning or ending balance show Insufficient Data rather than a false difference.

Imported statement out of sync with feed transactions¶

After a bank export import, ending balances exist but a day’s transaction sum does not explain the move from beginning to ending balance. Transaction Reconciliation shows Needs Attention with the dollar difference—often a missing, duplicated, or mis-dated posted transaction. Confirm the feed and import results on the Bank Feed before adjusting books.

Account status stays Insufficient Data for the whole period¶

If the period has no evaluable balance days for an account (for example, balances have not synced yet), both summary statuses remain Insufficient Data. Confirm the account is connected or imported correctly on Bank Accounts and that balance history exists for the selected dates.