How To Reconcile

Table of contents:

How To Reconcile
How To Reconcile
Video: How To Reconcile
Video: How To Do A Bank Reconciliation (EASY WAY) 2023, February

It is advisable to periodically reconcile mutual settlements for the obligations of the parties. As a rule, they determine the state of settlements at the end of a calendar year, month, or another period specified in the contract. The reconciliation act is signed at the end of the contractual relationship. The act signed by the parties has legal force not only for the parties, but also for the court. For reconciliation:

How to reconcile
How to reconcile


Step 1

The interested party, on the basis of accounting data, primary accounting documents, prepares a draft act in two copies, signs and sends to the other party for approval.

Step 2

The details of the act include: - date and place of drawing up.

- number and date of the agreement under which the reconciliation is carried out.

- the name of the parties between which the reconciliation is carried out

- the date of the relevance of mutual settlements, that is, the date on which all payments were taken into account and obligations were fulfilled. At the beginning of the document, the existing balance at the beginning of the reconciliation period is indicated. The opening balance must be confirmed by a previous act.

Step 3

The text contains income and expense transactions between counterparties, links to payment orders, invoices, certificate of completion, and consignment notes.

Step 4

At the end, the grand total is summed up, the balance is calculated (the difference between receipts and expenses).

Step 5

The act is signed by the head and the chief accountant, as the person responsible for accounting in the organization, the signature is certified with a seal.

Step 6

The second party, having received the act, agrees with it, signs and returns one copy. In case of disagreement with the data of the act, a settlement of disagreements is carried out, in this case the act is signed for an uncontested amount.

Popular by topic