Bank Reconciliation problem

Dear All,
in the page 3-17 of financial mgt manual of 3.70 version, states that
“The advantage of using this method to record transaction differences is that
you keep the correct G/L bank account balances in the program. The
drawback is that once the reconciliation is posted, there is no obvious way
for the user to see if the differences have been resolved, or if subsequent
“errors” in the bank statement are actually corrections of previous errors.”
It speaks about Bank Account Reconcilliation.
I have some questions about it, as follows:

  1. What does it mean ?
  2. What will be the effect in the future as a result of the postin ?
  3. Are there any solutions relate to the statement ?

I don’t really understand about. Tks in advance for your answers.



Is it Bank Reconcilliation you need to know about (long answer) or just what to do with the differences and small corrections?