Common Types of Bank Reconciliation Adjustments
The adjustment required depends on where the difference originated. Some items require a new general ledger entry, while others only require correct matching or clearance within the reconciliation process.
- Bank service charges: Record fees deducted by the bank when they have not already been entered in Sage 100.
- Interest income: Record interest credited to the bank account and recognize the appropriate income account.
- Electronic payments: Enter authorized withdrawals or automatic payments missing from the accounting records.
- Returned customer payments: Record returned checks or rejected deposits and restore the related customer balance when appropriate.
- Bank errors: Document incorrect bank transactions and contact the bank when correction is required; avoid recording a company adjustment for an error that belongs to the bank.
- Bookkeeping corrections: Correct duplicate entries, inaccurate amounts, or transactions posted to the wrong cash account using approved accounting procedures.
Outstanding checks and deposits in transit generally represent timing differences, not new expenses or income. They should be tracked until they clear rather than entered again as adjustments.
How to Enter and Review Adjustments in Sage 100
Menu names and available options vary by Sage 100 version and installed modules. Use the bank reconciliation function and the appropriate general ledger or cash management workflow for your configuration.
Step 1: Verify the statement. Confirm the bank account, statement date, ending balance, and transaction details against the official bank statement.
Step 2: Identify the difference. Match cleared deposits and withdrawals with recorded transactions. List missing bank activity separately from outstanding items and possible data-entry errors.
Step 3: Determine the correct entry. Identify the accounts affected, transaction date, amount, and supporting evidence. For example, a bank fee typically reduces cash and increases bank charges expense.
Step 4: Record and post the adjustment. Enter the transaction through the appropriate Sage 100 workflow, select the correct general ledger accounts, and complete required approvals and posting steps.
Step 5: Reconcile again. Confirm that the adjustment appears correctly, review the revised balances, and retain the reconciliation report and supporting documents for review.
Calculate the Adjusted Balance
The reconciliation difference can be calculated by subtracting the adjusted bank balance from the adjusted book balance. A positive result means the book balance is higher; a negative result means it is lower. A zero result indicates that the adjusted balances agree.
Formula: Reconciliation Difference = Adjusted Book Balance − Adjusted Bank Balance.
For example, suppose the adjusted book balance is $12,450 and the adjusted bank balance is $12,300. The difference is $12,450 − $12,300 = $150. Investigation reveals an unrecorded $150 bank service charge. Recording the fee reduces the book balance to $12,300, assuming no other differences remain. The adjusted balances now agree.
This example illustrates why the adjustment must be supported by the actual bank transaction. If the difference instead results from a duplicate payment entry, the appropriate correction would address that duplicate rather than record an unrelated expense.
Strengthen Controls and Month-End Accuracy
A documented Bank Reconciliation Policy should define reconciliation frequency, preparation and review responsibilities, supporting-document requirements, and escalation procedures for unresolved differences. A consistent Bank Reconciliation Framework also establishes how teams identify exceptions, authorize entries, post adjustments, and retain audit evidence.
Accurate account classification is equally important. During month-end close, finance teams should distinguish bank activity from accruals for expenses incurred but not yet invoiced. COA Accrual Structuring Tips & AI-Powered Reconciliation provides related guidance on expense recognition, accrual booking, and alignment between general ledger accounts and financial reporting.
Controls used in invoice reconciliation also support reliable accounting records by validating invoice details, matching supporting documents, and checking general ledger coding before approval or posting. These activities complement bank reconciliation adjustments but address a different stage of the finance process.
Technology and Human Review
Finance teams can use technology to support transaction classification, exception identification, and workflow documentation. The term agentic ai describes AI systems that coordinate defined tasks through agents and connected tools within established business rules.
The Hyperbots Platform supports company-specific ERP integrations, workflows, roles, and general ledger structures. Its Process Specific Capabilities support finance workflows, while Ready to Deploy Capabilities include pre-trained agents and ERP connectors. Self Learning Capabilities use human feedback to refine processing, and Human in the Loop workflows allow finance professionals to review exceptions and approve actions.
Organizations researching AI support for Sage products may also review AI Copilots for Sage 300 to understand how AI-assisted finance workflows can support accounting operations in that separate Sage product. Sage 300 functionality should not be assumed to match Sage 100 capabilities. For either environment, finance teams should verify that adjustments are supported, properly authorized, and reflected accurately in the general ledger.
Summary
Sage 100 Bank Reconciliation Adjustments help account for verified differences between bank statement activity and recorded cash balances. Identify the source of each discrepancy, distinguish timing items from missing entries, record corrections through the appropriate accounting workflow, and verify the revised balances. Consistent documentation, review controls, and accurate account coding improve cash visibility, strengthen financial reporting, and support a dependable month-end close.