I have identified a variance between the General Ledger and the Bank Sub Ledger in our system.
The GL balance is correct and equals $18,702.84, but the Bank Sub Ledger is $13,494.39 leaving a variance of $5,208.45. I have prepared a General Journal to bring the balances into line by ensuring one side of the journal was set to Account Type “Bank account” and the other as “G/L Account”. I.e. Actual GL gets Dr and Cr, but sub ledger only gets the Dr.
The ledgers now agree, but the $5,208.45 is showing as outstanding on the bank reconciliation. If I mark as prsented, my variance will return.
The first step to make sure that such variances doesn’t happen again is to check that the g/l account used by the bank posting group for you bank is not allowing “Direct Posting”. Typical variances on these “posting group” accounts are due to manual posts directly to the g/l account. That’s the same for g/l accounts used by all posting groups.
In your case then I would imagine that you have posted directly to the g/l account instead of using the “bank account”.
So to fix your variance you should make sure that you “reverse” these manual posts and move them to your “bank account”.
Thanks for the welcome and the quick reply. Direct posting has been disabled so that the problem shoud not occur again. Unfortunately the original transactions had been entered and reconciled many years ago. Is there a way to update the bank ledger (via the direct post jounrla that I prepared) but for it to show as reconciled and therefore not appear as an outstanding item on the reconciliaiton?