How do you Reconcile an Index?

Once you have the information you need, reconciling is easy. The first time or two you may find it more difficult because it is new. Once you fall into the routine of doing this each month, it will take little time. Reconciling will allow you to catch mistakes made in the Banner system, and have them corrected quickly.

Print your Banner Report

Print the month end FOROLDS detail report for your index, for the month just ended.
1. After month end has closed you can easily reconcile your index. This explanation is assuming you are reconciling after month end has closed.

Open your Uncleared Folder

During the month you have accumulated numerous source documents for the index you are reconciling in this folder.

Compare the Two

Payroll Expenses

1) Locate what you can match, and clear it.

Open your payroll folder.
Compare the totals of the Banner Report to the totals of your payroll report for that index. Check off the Banner Report for each account total that matches the payroll report. They should match!
Compare your list of staff names from your department that are supposed to be charged to this index, with the names on the payroll report. Check off each name on the Payroll report that matches your list. Write down any names that are missing, or “extra” on your Index Reconciliation Summary.
Compare your list of staff amounts/percentages with the amounts on the payroll report. They should match. Write down any that do not match on your Index Reconciliation Summary.

2) Investigate Discrepancies- Payroll.

We will assume all your payroll items matched. If not, discuss with your administrator. You may need to submit
1. An EPAF- to change an employee’s location/allocation
2. A PHAREDS- to correct an error in a posted salary amount.
3. Be aware that adjustments to payroll made during the month that you are reconciling will cause your totals to be different than what you may have expected based on other payroll reports. As long as the adjustments were correct, this is acceptable.

General Expenses

3) Locate what you can match, and clear it.

Find the first non-payroll item of expense [possibly office expense; account 3100]. Let’s say there are two lines under this account, one for $12.52, and one for $219.18.
Find the source documents in your Uncleared Folder for this account. You find three. One for $12.52, one for $83.67, and one for $422.12.
You put a check mark next to the $12.52 on your Banner report. You put a check mark on the document of origination that says $12.52. You initial and date this document. Then you take it out of the Uncleared folder, and set it aside for later attachment to your Index Reconciliation Package. One item is reconciled.
You look at the document for $83.67. You note that the date on the document is the last day of the month you are reconciling. You are not surprised, therefore, that it is not yet recorded in Banner. You put it back in your Uncleared folder for next month.
You look at the document for $422.12. You note that at the bottom of the invoice the expense is being split between three different indices. One of these is the index you are reconciling. Next to each of these index numbers, is an amount. The total of the three amounts equals $422.12. The amount next to your index number is $219.18. You put a check mark next to the $219.18 on your Banner report after you put a check mark by the $219.18 on the source document, initial, and date it. Then you take it out of the Uncleared folder and set it aside for later attachment to your Index Reconciliation Package. Congratulations! You have reconciled the first account in your index for this month!
You continue to check the source documents against the charges listed on your Banner report, for each line, for each account. You continue to put red check marks on both the document and report, when they match.
When a source document does not match the Banner report, you fill out a line on the Index Reconciliation Summary.
If you have any items without a checkmark on your Banner report when you have reviewed all of your source documents, you list that item on a line on the Index Reconciliation Summary page.

4) Discrepancies are Listed on Index Reconciliation Summary

When you are done, all have matched exactly, except three:
1. One number in Banner, for $87.32 is simply not in your folder. You have no idea what it is or where it came from. You have listed it on your Index Reconciliation Summary.
2. One number in Banner is for $.03 less than the invoice in your folder. Otherwise, it matches the index, account, and time frame. It is for the same vendor. You have listed it on your Index Reconciliation Summary.
3. One document of origination, a DPI for $2,940, is still in your folder, though it was created over a month ago. You have listed it on your Index Reconciliation Summary.

Investigate Discrepancies- General Expenses

There are three types:

Amount on Banner Report does not match Source Document
Amount on Banner Report but there is no Source Document
You have a Source Document, but you cannot find the amount on the Banner Report

This is the point at which you may need help. Do not hesitate to ask for it. You must now figure out what to do about your differences. In the example above, the differences that exist are the $87.32, the $.03, and the $2,940.

The easiest is the $.03. You have determined that this charge almost certainly is for the invoice in your Uncleared Folder. It is for the same index, the same account, and the same time frame. The only difference is that Banner paid $.03 less than was billed. Perhaps this is an immaterial difference. Mark on this invoice that it was paid in Banner (write down the month the charge appeared in Banner; the month you are currently reconciling), and was paid $.03 less than billed. Put a check mark on your Banner report, next to this item. Remove the source document from your Uncleared folder, and set it aside for attachment to your Index Reconciliation Summary. Write “Immaterial” in the note section on your Index Reconciliation Summary line that lists this item. Your department administrator will help you decide at what level of difference [generally, less than a dollar] you can use this approach. You will report any patterns of errors, or irregularities that you find, even if they are each very small.
In Banner, but no Source Document. This is the $87.32. One of two things has happened. Either you did not get a copy of the source document, or this was incorrectly charged to your index. You need to determine which of these happened. Drill down in Banner, figure out the document number, pull it up if it is in XTender and print a copy. You can also call the originator. Ask for help if you need to. Track your progress on your Index Reconciliation Summary page by including notes.
Source Document in Uncleared file but no Banner Posting. This is the $2,940. One of two things has happened. Either it has not been charged at all, or it has been charged to the incorrect index. You need to determine which of these happened. You have the DPI number and you can check in Banner to see what its status is. If it is posted, you can figure out where. If it is not posted, or if it has been cancelled, more investigation is needed. Does someone in AP need more documentation? Is the Financial Services Office waiting for a missing piece of documentation? Did the DPI get lost? Track your progress on your Index Reconciliation Summary by including notes.

Create an Index Reconciliation Summary<

There are several ways to create an Index Reconciliation Summary. Many departments have well developed processes that should be followed. If no specific format is required by your department administration, the following uniform method will work:

Use the Index Reconciliation Summary template on the Financial Services website under forms. This is an excel worksheet that allows you to list your discrepancies, which are called “reconciling items”, and explain their status. As each is resolved, add a note explaining how it was resolved.
File this completed Index Reconciliation Summary in your Account Reconciliation folder, after attaching it to the MyReports FOROLDS Index report, the payroll report, and the checked off Banner source documentation. This is the index reconciliation package that you keep for each fiscal year, for each index.