"Oh no, the bank reconciliation process has completely changed. How am I supposed to move forward?"
If you've had this thought recently, you're not alone. As Deltek continues to roll out updates across Costpoint, the once-familiar bank reconciliation process may seem unfamiliar at first glance. The good news? The overall process remains largely the same, with several new features designed to improve efficiency and provide greater flexibility.
Let's walk through what's stayed the same, what's changed, and how to take advantage of some of the new functionality.
Before You Begin: A Word of Caution
Before diving into the updated reconciliation process, there is one important item we want to call out regarding the Process Bank Transactions Acceptance application.
While this application is not new, we've seen users run into issues when using its mass-change functionality. In particular, selecting “Set Code To: Outstanding” can mark all selected transaction types as Outstanding, going back to inception. This can effectively reverse all previously completed bank reconciliation work.
Use this option with caution. Once this process is run, there is no undo option. If you do accidentally run it, let us know. We will walk you through some options.
What Hasn't Changed
First, let's talk about what remains the same.
We still use the Update Cash Account application to link the General Ledger account and organization to the bank abbreviation based on the setup within the Accounts Receivable, Accounts Payable, and Payroll control applications.
Next, in Manage Bank Statement Information, we enter bank account balances and statement date ranges. This information is used to generate the Bank Reconciliation Inquiry and Bank Reconciliation Summary Report.
Finally, we run Create Bank Transaction History. We recommend entering only the current fiscal year and period in the Timing section. This step pulls in all transactions so you can begin accepting bank transactions.
Understanding the New Accept Bank Transactions Application
This is the area that has caused the most confusion for users. The application is new, the layout is different, and some buttons have changed names. However, the overall reconciliation process is very similar to what longtime Costpoint users are accustomed to.
Let's break down the key areas of the screen.
Bank Abbrev
Select the bank abbreviation you are planning to reconcile.
Start Date and Through Date
These dates should reflect the reconciliation period you are working on.
This is one of the biggest changes in the new process. Previously, reconciliations were typically performed by accounting period. Now, you can reconcile any date range you choose.
If you are performing a month-end bank reconciliation, we recommend entering the first day of the month through the last day of the month. However, if you prefer to reconcile more frequently, shorter date ranges are fully supported.
The Through Date is particularly important because it populates the Date Cleared field on General Ledger transactions. In the previous version, this date was pulled from the Bank Acceptance Defaults section.
Another notable change is that Fiscal Year, Period, and Subperiod are no longer displayed in the main reconciliation view. Instead, Costpoint automatically defaults these values based on the accounting period in which the Through Date falls.
If needed, you can still manually edit the following fields on individual transactions:
- Date Cleared
- Fiscal Year Cleared
- Period Cleared
- Subperiod Cleared
GL Transactions - Bank Statement = Difference
Don't worry about this section just yet. It becomes important once bank transaction imports are being used.
Transaction Types
This area has been simplified into a dropdown menu.
If you previously liked selecting only Accounts Payable or only Cash Receipts, you can still narrow down the results using queries and filters.
As an added bonus, you can now view, enter, and clear Manual Transactions without having to uncheck "All Types" and then select only "Manual Transactions."
Update Status
This is a helpful new feature.
Selecting Update Status displays the last time key banking processes were run. This allows you to quickly identify whether updates need to be posted before beginning the reconciliation.
For example, if Post Cash Disbursements hasn't been run in several weeks, it's a good idea to complete that process before starting the bank reconciliation.
Match
Replaces the former Set to Clear action.
Unmatch
Replaces the former Set to Out action.
Auto Match
We'll come back to this feature later when discussing bank transaction imports.
Performing Your Reconciliation
Now that we understand the new screen layout, let's begin the reconciliation process.
- Enter your Bank Abbreviation.
- Enter your Start Date and Through Date.
- Select Outstanding Transactions.
- Click Execute.
The GL Transactions section will populate with all outstanding transactions for that date range.
From there, simply identify transactions that appear on your bank statement and click Match to mark them as cleared.
At that point, it's business as usual.
The Biggest Enhancement: Bank Transaction Imports
While the standard reconciliation process remains largely unchanged, the most significant enhancement is the ability to import bank transactions directly into Costpoint.
There are currently two methods available:
- Plaid Integration (Cloud customers only)
- CSV Import
Both options require configuration within the Manage Company Bank Accounts (US) application.
If you're interested in implementing either option, our team can help with the setup process.
Once bank transactions are imported, several additional features become available during reconciliation.
Importing Bank Transactions
Plaid Integration
After the Plaid connection has been established, you can download transactions from supported financial institutions and import them into Costpoint through the Transfer Plaid Bank Transactions application.
The imported activity is then inserted into the bank statement tables and made available for reconciliation.
CSV Import
If you prefer not to use Plaid, you can import bank activity via a CSV file using the Manage Bank Statement Information application.
The required format of the CSV file is determined by your Upload Bank Settings configuration within Manage Company Bank Accounts (US).
After import, you can review the activity using the Print Bank Statement Report application.
If corrections are needed, or if you need to remove imported data and start over, you can do so through Manage Bank Statement Information.
Reconciling with Imported Bank Transactions
Once your bank activity has been imported, return to the Accept Bank Transactions application.
Enter:
- Bank Abbreviation
- Start Date
- Through Date
- Outstanding Transactions
Then click Execute.
Additional Helpful Features
Now let's revisit the features we skipped earlier.
GL Transactions - Bank Statement = Difference
With imported bank data, this section becomes extremely valuable.
You'll see:
- Total GL transactions for the selected date range
- Total imported bank transactions for the selected date range
- The difference between the two amounts
This provides a quick, high-level indicator of whether discrepancies exist before you begin researching individual transactions.
Auto Match
This feature can save a significant amount of time.
When you click Auto Match, Costpoint automatically matches qualifying records between the GL Transactions table and the Bank Statement Transactions table.
According to Deltek's Help documentation, Auto Match uses the following criteria:
Cash Receipts
Auto Match will reconcile transactions when:
- The Type is Misc Deposit
- The Bank Transaction Amount equals the GL Amount
- The Bank Date is within seven days before or after the GL Date
Accounts Payable and Payroll
Auto Match will reconcile transactions when:
- The Type is Check
- The Bank ID equals the GL Transaction Number
- The Bank Transaction Amount equals the GL Amount
When matching criteria are met, Costpoint automatically clears the transactions, reducing the amount of manual work required during reconciliation.
Key Takeaways: Streamline Reconciliation with Confidence
Although the updated bank reconciliation interface looks quite different, the core process remains familiar. Once you learn the new layout, you'll find several enhancements that streamline reconciliation.
Flexible date ranges, transaction imports, reconciliation summaries, and Auto Match reduce manual effort and improve efficiency.
You don't have to navigate these changes alone. Whether you need help with bank reconciliations, Plaid integration, or bank statement import setup, our experts are your partner every step of the way. Reach out today, and we'll help you make the most of Costpoint's enhanced bank reconciliation functionality while keeping your operations comfortable.
