Bank Reconciliation
Bank reconciliation in Udyot ERP is the process of matching every transaction in your bank ledger against your actual bank statement — so your books and your bank always tell the same story. For Nepali businesses that deal with cheque payments, online transfers, and bank charges posted mid-month, a regular reconciliation prevents surprise differences at year-end, catches unauthorised debits early, and gives your auditor a clean, verified cash book.
Why bank reconciliation matters in Nepal
Several things make your Udyot bank ledger balance differ from the bank statement balance at any point in time:
- Outstanding cheques — you issued a cheque and recorded the Payment voucher, but the payee has not yet presented it to the bank.
- Deposits in transit — you recorded a Receipt voucher, but the funds have not yet been credited by the bank.
- Bank charges — service fees, SMS charges, and account maintenance debits posted directly by the bank without prior notice.
- Interest credits — small interest amounts credited by the bank that you may not have recorded yet.
- Returned cheques — a cheque from a customer bounced; the bank reversed the credit but you have not yet reversed the Receipt in Udyot.
Reconciling monthly — ideally within the first week of each new Nepali month — keeps these differences small and easy to trace.
Before you start
You need two things ready:
- Your bank statement for the period (download it as a PDF or Excel from your bank’s internet banking — NIC Asia, Global IME, Kumari Bank, and most major Nepali banks support this).
- A bank ledger in Udyot tagged as “Bank”. If your ledger was not created with the Tag as Bank toggle enabled, go to Chart of Accounts, edit the ledger, turn on the toggle, and save. Without this, the reconciliation screen will not show the ledger in its list.
How to run a bank reconciliation in Udyot ERP
- Go to Banking → Bank Reconciliation.
- Select the bank ledger you want to reconcile (for example, “Bank — NIC Asia 1234”).
- Set the statement date range — typically the first to the last day of the month in Bikram Sambat (BS). For example, 2081-04-01 to 2081-04-31 for Shrawan 2081.
- Udyot displays every voucher leg that touched this bank ledger and has not yet been marked as cleared. Each row shows the voucher number, date, narration, debit, and credit.
- Work through your bank statement line by line. For each transaction that appears on the statement and matches a row in Udyot, tick the Cleared checkbox and enter the clearing date (the date the bank actually processed it).
- The reconciled balance updates in real time: Opening balance + cleared debits − cleared credits. Keep ticking entries until this matches your bank statement closing balance.
- For any bank statement line that has no matching row in Udyot (such as a bank charge or interest credit), create the missing voucher first — a Payment voucher for charges or a Receipt voucher for interest — and then return to the reconciliation screen to tick it as cleared.
- When the difference is zero, the reconciliation is complete. The cleared entries are now marked as reconciled and will not appear in the pending list again.
Understanding the reconciliation balances
| Balance shown | What it means |
|---|---|
| Book balance (Udyot) | The ledger closing balance including all posted vouchers, reconciled and unreconciled. |
| Reconciled balance | Opening balance plus only the entries you have ticked as cleared — should equal your bank statement closing balance. |
| Pending in bank reconciliation | Entries posted in Udyot but not yet cleared by the bank (outstanding cheques, deposits in transit). |
| Difference | Reconciled balance minus bank statement balance. Aim for zero before closing the reconciliation. |
Tracking cheques and un-cleared entries
Any voucher leg you leave un-ticked stays in the “Pending in bank reconciliation” list. This gives you a live list of:
- Cheques issued but not yet encashed by suppliers or employees.
- Customer cheques deposited but not yet credited by the bank (e.g., clearing cheques that take 2–3 working days in Nepal).
- Inter-bank transfers still in transit.
You can click any pending row to open the original voucher and verify its details. If you realise a cheque was lost or cancelled, reverse the Payment voucher with a Journal entry and it will disappear from the pending list.
Nepal-specific note: BS dates and bank statements
Nepali bank statements print dates in the AD calendar, but Udyot records all vouchers in BS. When you set the date range in the reconciliation screen, use BS dates — Udyot converts them to AD for the bank statement comparison. If your bank statement shows a transaction on 2025-07-16 AD, that corresponds to 2082-04-01 BS. The date picker on the reconciliation screen shows both formats side by side for easy cross-referencing.
Tips for a fast monthly reconciliation
- Write the cheque number in the Narration field of every Payment and Receipt voucher. The reconciliation list shows narrations, making it easy to match against the bank statement description.
- Record bank charges on the same day you see them on the statement — do not wait until month end.
- Reconcile every bank ledger separately. If you have accounts at NIC Asia and Global IME, run two separate reconciliations.
- After reconciliation, run Financial Reports (General Ledger for the bank ledger) and confirm the closing balance matches the statement. This is a quick cross-check before you close the month.