What Is Bank Reconciliation (BRS)?
Bank Reconciliation compares your Tally bank ledger balance with the bank statement to identify timing differences and errors. In TallyPrime, you can reconcile entries manually or automatically by importing the bank statement and letting Tally match them.
- Catch uncleared cheques, bank charges, interest, and duplicate entries.
- Produce accurate cash flow and closing balances for reporting.
- Speed up month-end with auto-match & rules.
Pre-Requisites (Quick Checklist)
- Bank ledger created under Banks with correct opening balance.
- All receipts/payments posted (Sales/Purchase/Payment/Receipt vouchers updated).
- Download bank statement (period you’re reconciling) in CSV/XLSX/MT940/OFX format.
- Know your statement end date and opening balance as per bank.
Keep the Data Path handy for backups before large imports.
Two Ways to Reconcile
Method 1 — Manual Reconciliation Classic
- Gateway → Display More Reports → Banking → Bank Reconciliation.
- Select your Bank Ledger and the period.
- Tick each entry and set the Bank Date as shown on the statement.
- Unreconciled items remain listed; print or export the BRS report.
Method 2 — Auto Reconciliation (Import) Fast
- Banking → Bank Statements → choose your bank ledger.
- Click Import and select the statement file (CSV/XLSX/OFX/MT940).
- Map columns → confirm Date, Description, Debit/Credit, Balance (if provided).
- Review Auto-Matched, Partially Matched, and Unmatched entries.
- Accept matches; create On-the-fly ledgers for bank charges/interest if prompted.
Import Mapping — Recommended Column Setup
| Column | Purpose | Notes |
|---|---|---|
| Date | Bank transaction date | Use DD-MM-YYYY or per file; ensure Tally date format matches |
| Description/Narration | Payee/Payer info | Used for auto-match & rule-based mapping |
| Debit | Money out | Map to Withdrawal amount |
| Credit | Money in | Map to Deposit amount |
| Balance (optional) | Running bank balance | Helpful for cross-checking totals |
| Cheque/Ref No (optional) | Reference matching | Improves match rate on cheque payments |
If your bank provides OFX/MT940, prefer those over CSV for cleaner imports.
Typical Differences & How to Treat Them
| Difference | Why It Happens | Treatment in Tally |
|---|---|---|
| Unpresented Cheques | Cheques issued but not yet cleared by bank | Keep as unreconciled with voucher date; set bank date when cleared |
| Uncredited Deposits | Deposits recorded but not reflected by bank | Leave unreconciled; reconcile when it appears on statement |
| Bank Charges/Interest | Bank debits/credits not recorded in books | Create ledger Bank Charges/Bank Interest and post Payment/Receipt |
| Duplicate Entries | Same voucher posted twice | Delete/alter the duplicate voucher; reconcile the correct one |
| Wrong Amount/Date | Data entry mistakes | Edit voucher to correct amount/date; re-run reconciliation |
Quick Walkthrough: Monthly BRS in 6 Steps
- Post all receipts & payments for the month (sales, purchases, adjustments).
- Open Bank Reconciliation for the bank ledger.
- Set the Statement End Date (e.g., 30-Jun-2025).
- Import the bank statement or tick entries manually with bank dates.
- Post missing items (bank charges/interest, auto-sweeps, NEFT fees).
- Verify Book Balance vs Bank Statement Balance and export the BRS.
Keep supporting documents (counterfoils, deposit slips) for audit readiness.
Best Practices & Controls
- Maintain separate Bank Charges and Interest ledgers under Indirect Expenses/Income.
- Enable bill-wise tracking for customers/vendors to improve auto-matching on receipts/payments.
- Use narrations consistently (e.g., “NEFT to Supplier B — INV 145”).
- Run BRS weekly during peak seasons to avoid month-end pileup.
- Back up before large imports; keep a reconciliation log with dates and differences.
Troubleshooting (Common Errors & Fixes)
| Issue | Cause | Quick Fix |
|---|---|---|
| Import fails / wrong columns | Mismatched headers or date format | Remap columns; align date format; try OFX/MT940 |
| Auto-match low % | Descriptions differ; amounts split | Use cheque/ref no.; split entries (bank charges) to match amounts |
| Ledger not selectable | Bank ledger grouped incorrectly | Ensure ledger is under Banks with proper opening balance |
| Statement balance doesn’t tally | Missing entries or duplicates | Scan unreconciled list; post bank charges/interest; remove duplicates |
| Old cheques never clear | Stale instruments or wrong party mapping | Reverse stale cheques; reissue via correct party/ledger |