INTRODUCTION
A business maintaining its bookkeeping records in Cetec ERP approached us for support with bank reconciliations. Since this platform records transactions differently from most accounting systems, even routine reconciliation tasks required a customized approach.
To ensure accuracy, we began by reviewing the system’s help documentation and consulting additional resources to gain a clear understanding of its transaction flow before starting any cleanup work.
DISCUSSIONS
In our review, we identified several system-specific challenges in managing bank transactions:
• Non-deletable entries – Wrong transactions couldn’t be removed, only offset, which cluttered the books.
• Complicated corrections – Shifting a transaction to the right account triggered both a reversal and a new entry, adding unnecessary complexity.
• Hidden reversals – These did not appear on the reconciliation screen but still altered balances and expenses, making them easy to miss.
In the first few months of reconciliation, we detected discrepancies caused by hidden reversals. These entries were absent from standard reports but still affected accuracy. Our review confirmed that undoing and recreating payments consistently triggered such entries, leaving them unreconciled and distorting balances.
REQUIREMENTS
• Implement a structured approach to ensure accurate bank reconciliations despite system constraints.
• Identify and neutralize hidden reversal entries affecting bank balances.
• Prevent the accumulation of unreconciled transactions in future periods.
• Ensure financial reports consistently reflect correct balances.
SOLUTION
1. Monthly Bank Reconciliation
We conducted full monthly reconciliations, aligning all transactions with official bank statements. This created a dependable baseline for identifying irregularities caused by reversal entries.
2. Focused Review of Unreconciled Transactions
Post-reconciliation, we generated detailed ledger reports to highlight unreconciled items. Identifying these early allowed us to resolve hidden reversals before they disrupted the financial close.
3. Zero-Out Adjustment for Reversal Entries
When reversal transactions were detected, we applied offsetting entries to neutralize their impact. This ensured balances and expense accounts reflected accurate figures.
4. Integration into Monthly Closing Process
We embedded this reconciliation method into the client’s monthly closing cycle. Addressing discrepancies in real time prevented them from compounding and safeguarded the accuracy of financial records.
CONCLUSION
By resolving hidden reversals and stabilizing reconciliations, the client now benefits from accurate reporting and reliable month-end closes. This engagement demonstrated the impact of tailor-made solutions and a structured approach, backed by our experienced team. We delivered cleaner books and a stronger foundation for long-term financial accuracy and decision-making.
