Auto-Bank Reconciliation with Uploaded Bank Statements in Tally Prime

Auto-bank reconciliation in Tally Prime simplifies the process of matching your company's books with bank statements. By uploading bank statements in supported formats, you can reconcile transactions automatically, saving time and effort. This guide walks you through the process with a real-life example.

Step 1: Prepare Bank Statements

Before starting, ensure you have the bank statement in a supported format:

• Download the bank statement in formats such as Excel, CSV, or the specific format supported by Tally for your bank.
• Ensure the statement covers the transactions you want to reconcile.

Step 2: Enable Banking Features

1. Open Tally Prime.
2. Go to Gateway of Tally.
3. Navigate to F11: Features.
4. Under Accounting Features, ensure Enable Auto Bank Reconciliation is set to Yes.
5. Press Ctrl+A to save the settings.

Step 3: Configure the Bank Ledger

Ensure your bank ledger is configured correctly for auto-reconciliation:

1. Go to Gateway of Tally.
2. Select Alter under Ledgers.
3. Choose the bank ledger, e.g., XYZ Bank.
4. Ensure the following details are entered:
   • Bank Name: XYZ Bank
   • Branch: Main Branch
   • Account Number: 987654321
   • IFSC Code: XYZ001234
5. Press Ctrl+A to save.

Step 4: Upload the Bank Statement

Upload the downloaded bank statement into Tally Prime:

1. Go to Gateway of Tally.
2. Select Banking and then Bank Reconciliation.
3. Choose the bank ledger, e.g., XYZ Bank.
4. Press Alt+U to upload the bank statement.
5. Browse to the location of the statement file and select it.
6. Tally Prime will read and map the transactions from the statement.

Step 5: Reconcile Transactions

After uploading the statement, Tally Prime automatically matches transactions:

1. Review the matched transactions. Tally Prime highlights them as reconciled.
2. For unmatched transactions:
   • Manually match them if necessary by selecting the corresponding entry in the books.
   • If the transaction is missing, add it to the books using the Create option.
3. Save the reconciliation by pressing Ctrl+A.

Step 6: Generate the Reconciliation Report

To view a summary of the reconciliation:

1. Go to the Bank Reconciliation screen.
2. Press Alt+P to print the report.
3. Alternatively, press Ctrl+E to export the report in the desired format.

Example

Suppose the company has the following transactions in its books for XYZ Bank:

• Payment of ₹10,000 to ABC Traders.
• Receipt of ₹20,000 from DEF Customers.

The bank statement shows these transactions on corresponding dates. After uploading the statement, Tally Prime automatically matches these transactions. For an additional ₹5,000 payment reflected in the statement but not recorded in Tally, the user creates a new entry to complete the reconciliation.

Conclusion

Auto-bank reconciliation in Tally Prime streamlines the reconciliation process, reduces manual effort, and minimizes errors. By uploading bank statements, businesses can ensure accurate financial records and save time for other critical tasks.