Flex Check Register Reconciliation

Back Office Section Heading Flex Check Register Reconciliation

Overview

Check Reconciliation is a critical process within the FLEX system, designed to match cleared checks against the active check register. This process identifies checks that have successfully cleared, ensuring accurate financial records for credit unions.

Key Principles

  • Matching Cleared Checks: The primary purpose is to compare checks that have cleared through a financial institution or in-house processing against the credit union’s active check register.
  • External vs. In-House Processing:
    • External Financial Institution: If checks are issued from an outside financial institution, FLEX can upload a file received from that institution to facilitate reconciliation. Contact FLEX support for setup assistance.
    • In-House Processing: For credit unions processing their own checks through a checking account setup (e.g., member checking), FLEX can compare the account’s history to mark checks as cleared.
  • Recommended Reconciliation Practice: FLEX recommends reconciling one day at a time, progressing forward from the last balanced date to the current date.

Accessing the Check Register

The Check Register is located within the FLEX Main Menu under the GL/Accounting section.

  • Navigation Path: GL/Accounting > Check Register

Check Register Interface Elements

The Check Register interface provides various views and filtering options to manage and reconcile checks.

Register Views

  • Active Check Register: Displays unflagged checks and any checks not yet moved to the Cleared Check Register.
  • Cleared Register: Contains all checks from the Cleared Check Register.
  • Combined Register: Shows all checks from both the Active Check Register and the Cleared Check Register.

Search and Filter Fields

  • Bank ID: An optional field for credit unions that issue checks from multiple bank accounts.
  • Check #: Allows searching for a specific check by its number.
  • Check Date: Enables searching within a specified date range.
  • Max Results: Sets the maximum number of results to display (default: 1000).
  • Search Button: Executes the search based on the criteria entered in the above fields.
  • Clear Filters Button: Clears all applied filters.
  • Filter Button: Allows users to select more specific criteria for searching the Check Register.

Detail and Summary Tabs

  • Detail Tab: Provides a detailed list of checks matching the applied filters.
  • Summary Tab: Displays a total count and dollar amount of checks categorized by their status (e.g., Voided, Stopped, Unclaimed, Unflagged, Cleared, Total). This tab is crucial for validating uncleared checks against the credit union draft account (sweep) or general ledger account (reverse sweep).

Reconciliation Process

The reconciliation process involves several key actions: Receive, Post, and Archive.

1. Receive Cleared Check File

The “Receive” option is the first step in the reconciliation process.

  • Purpose:
    • For credit unions using an external financial institution, this option receives the cleared check file into the FLEX system.
    • For credit unions processing checks in-house, this option reads the history of the checking account to build the file of cleared checks.
  • Steps:
    1. Navigate to the Check Register (GL/Accounting > Check Register).
    2. Click the Reconciliation button.
    3. Select the Receive radio button under “Action”.
    4. Enter or select the following “Build Bank Statement” parameters:
      • Account: (e.g., 9500)
      • Suffix: (e.g., 14)
      • From Date: (e.g., 8/30/2016)
      • To Date: (e.g., 8/30/2016)
      • Bank Number: (if applicable)
    5. Click OK. The system will display the “Number of checks found” for the specified date range.

2. Post Cleared Checks

The “Post” option flags matched checks as “CLEARED” in the Check Register.

  • Purpose: To post the cleared check file against the Active Check Register or the history in the credit union account. The system attempts to match each check in the file by check number and dollar amount.
  • Exception Report: Checks in the file that do not match a record in the Check Register will appear on the Exception Report.
  • Steps:
    1. Click the Reconciliation button again.
    2. Select the Post radio button under “Action”.
    3. Click OK.
  • Verification: After posting, use the filter to verify that the number and dollar amount of cleared checks equal the total drafts posted to the credit union draft account for the day. You can filter by Clear Date and Cleared flag.

3. Archive Cleared Checks

The “Archive” option moves processed checks from the Active Check Register to the Cleared Check Register.

  • Purpose: To move cleared, voided, or stopped checks from the Active Check Register into the Cleared Check Register, ensuring that only truly outstanding checks remain in the Active Check Register.
  • Steps:
    1. Click the Reconciliation button again.
    2. Select the Archive radio button under “Action”.
    3. Select the type of checks to archive (e.g., Cleared, Voided, Stopped).
    4. Enter or select Check Date Prior (if applicable) and Check Number Less Than (if applicable).
    5. Click OK. This action moves all selected checks from the Active Check Register to the Cleared Check Register.

Verifying Outstanding Checks

After reconciliation and archiving, it is crucial to verify the balance of outstanding (uncleared) checks.

  • Purpose: To ensure the balance of outstanding checks matches the balance of the credit union draft account (sweep) or general ledger account (reverse sweep).
  • Filter Criteria for Uncleared Checks:
    • Check Date: Set the date range from the oldest check through today’s date (or a previous date, depending on when drafts post).
    • Check Clear Flag: Select Unflagged.
  • Verification using Summary Tab: The Summary tab will provide the total count and dollar amount of unflagged checks, which can then be validated against the relevant account balances.