The Bank Reconciliation (Bank Rec) further explained

It’s important to look at how the Bank Reconciliation (Bank Rec) works in Big Red Cloud (BRC).

Month Tab Versus Date box

• We first need to explain the difference between the Month and the Date when it comes to the Bank Rec. 
• Before entering a transaction, you would first select the relevant Month tab in the book, and when adding the transaction you would select the relevant Date. 
• The Bank Rec works by the Month tab (not by the Date). 
• Example: if you enter a transaction into the March month tab, but with a February Date (e.g. 18/02/25), that transaction would be taken into account in the March Bank Rec, but it wouldn’t be taken into account in February Bank Rec. 
• However, when looking at the Bank Ledger, the transactions are displayed in Date order (not in Month tab order).

Example: Month Tab

Example: Date field 

Note: while the March tabbed month was selected (shows in the red bar), the date selected was a February date of 18/02/25. 

The Actual Bank Balance

• The Actual Bank Balance on the Bank Rec is the Bank Balance according to BRC as of the end of the Month tab that you select in the Include Entries Up To box. 
• For example: if you choose March in the Include Entries Up To box, that is the Bank Balance according to BRC as of the End Of March.  
• It is calculated by BRC as follows: 
  • Bank Opening Balance (as entered/carried over in BRC)  
  • PLUS   Lodgements/transfer In   
  • MINUS   Payments out.     
  • EQUALS   Actual Bank Balance

The Discrepancy

• The value of the Discrepancy box in the Bank Rec is calculated as follows:  
  • Bank Statement Balance (that you manually type in from your real bank statement)   
  • PLUS   Total of Outstanding Entries in BRC   
  • EQUALS   Actual Bank Balance. (If it does not equal, it will give a Discrepancy.) 
• Again, these figures are based on the Include Entries Up To tabbed Month, for example if you choose March, then it is up to the end of March.