Exploring cash and bank management in action

The following section will explore cash and bank management in daily transactions. It will focus on bank account reconciliation, which is a key process to ensure that all recorded transactions match the bank statement, and the bank facility will focus on the letter of guarantee.

Bank account reconciliation

Bank account reconciliation is a validation process of the bank's account statement and recorded transactions in the cash and bank management module, through customer deposits and vendor payments.

There are two reconciliation mechanisms that you can apply for each bank account: the first one is the manual reconciliation mechanism, and the second one is the automatic import of bank statements. You have to navigate to Cash and bank management | Bank accounts | Bank accounts | Select bank account. In the RECONCILE ribbon, click on Account reconciliation, as shown in the following screenshot:

The procedure begins when the company receives the bank account...