Automated Clearing

Manual Clearing

In manual clearing, Bank statement details are to be matched manually considering certain rules. Learn the steps involved in manual clearing of bank transactions.

Manual Clearing

This method requires you to manually match bank statement details with system transactions.

The method is ideally suited to reconciling bank accounts that have a small volume of monthly transactions.

You need to also use the manual reconciliation method to reconcile any bank statement details that could not be reconciled automatically.

Steps in Manual Clearing

  1. Check off all checks that are listed on the bank statement as having cleared the bank.
  2. Check off all deposits that are listed on the bank statement as having cleared the bank.
  3. Enter as expenses all bank charges appearing on the bank statement, and which have not already been recorded in the company's records.
  4. Enter the ending balance on the bank statement.
  5. If the balances do not match, then continue reviewing the bank reconciliation for additional reconciling items.
Manual Clearing

cashmgmt

Related Links

You May Also Like

  • Cash Clearing Learning Objectives

    Introduction to Cash Clearing Process

    Unravel the mystery behind clearing accounts. Learn why clearing accounts are used in finance and accounting. Learn why so many clearing accounts are defined in ERPs and Automated Accounting Systems.

  • What is a Bank Statement?

    What is a Bank Statement?

    Have you ever wondered what is actually a Bank Statement and why it is needed. What is the information that is available in a bank statement?

  • Clearing V/s Suspense Account

    Clearing V/s Suspense Account

    Suspense and clearing accounts resemble each other in many respects but there exists important fundamental difference between the two. Read more to explore these differences.

  • Complete Bank Reconciliation Process

    Complete Bank Reconciliation Process

    Bank Reconciliation Process is a eight step process starting from uploading the Bank Statement to finally posting the entries in General Ledger. Learn the Eight Steps in Detail!

  • Treasury Management

    Treasury Management – What?

    The terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger and includes funding and investment activities as well. Learn all about Treasury Management here!

  • Bank Statement Lines

    Bank Statement Lines

    So many codes in the lines that are there in a Bank Statement. It contain lots and lots of meaningful information that can help automated many tasks. Explore more!

  • Why Cash Management?

    Cash Management – Why?

    Why enterprises need cash management. What is the purpose of having a well defined cash management process?

  • Cash Management - Benefits

    Cash Management - Benefits

    Effectively using cash management with trade finance products brings tangible benefits to both corporates and financial institutions.Learn the various benefits of cash management process.

  • What is Cash

    What is Cash

    Before we dive into cash management, let us fist understand what we mean by cash and what constitutes cash in context of cash management process.

  • Account Reconciliations– Why?

    Account Reconciliations– Why?

    In the previous article we talked about the meaning of the account reconciliations. Now as you now the definition of account reconciliation, in this article let us see why it is carried out.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved