Bank Statement Reconciliation Step by Step | Finac

Bank Statement Reconciliation: From Upload to Posted Entries

Uploading a bank statement is the quickest way to bring a month's transactions into the books. Finac reads each line of the statement, suggests the customer, supplier or ledger it belongs to from the narration, matches receipts and payments to open invoices, and posts the rest as entries under Other Entries. This article follows a statement from upload to posted entries and explains the summary figures on the way.

On this page

Opening Upload Bank Statement

  1. Open the client and select Invoicing Advanced.
  2. Select + Other at the top right, then Upload Bank Statement.
The + Other menu. Create Other Entries records a manual journal; Upload Bank Statement opens the statement screen.

Uploading a statement

  1. Select + Upload Bank Statement.
  2. Choose the Branch the account belongs to and the Ledger, which is the bank account as set up in Accounts Manager.
  3. Drag the statement file onto the panel or click to select it. CSV, XLS and XLSX are accepted, one file at a time, and the file must not be password-protected. Alternatively select Upload From File Manager to use a statement already stored for the client.
  4. Select Upload Statement.
Upload Bank Statement dialog with Select Branch and Select Ledger fields, notes on branches and password-protected files, a drag-and-drop area for CSV, XLS or XLSX, an Upload From File Manager option and the Upload Statement button
The Upload Bank Statement dialog. The ledger is the bank account; the branch can be changed later if the client has more than one.

Most banks offer a CSV or Excel download of the account statement from net banking. Use that rather than a PDF, and download the full period you intend to reconcile so no transactions fall between two uploads.

The uploaded statements list

Each uploaded statement is a row on the Upload Bank Statements screen, showing the file, branch, ledger, processing status (READY once read), the number of transactions, the date range covered, when and by whom it was uploaded, and the statement ID. The action icon at the right opens the statement's transactions.

Two statements for the demo client's PNB account, each covering 5 July to 8 August 2026 with 19 transactions, both READY.

Reviewing transactions

The statement view opens with a header repeating the file, date range, closing balance, branch and ledger, followed by five summary cards and the transaction list.

Uploaded Bank Statement view with summary cards for Total Transactions 19, Total Debit, Total Credit, Unmatched Transactions and Matched Transactions, status and type filters, and the Transaction Details list with date, narration, amount, suggested ledger and View action
The statement view: 19 transactions, 18 matched and posted, one unmatched receipt of ₹1.00 awaiting a ledger, with the suggested ledger shown against each line.
CardMeaning
Total TransactionsLines on the statement, split into credits (receipts) and debits (payments).
Total Debit / Total CreditThe value of payments and receipts, each with how many of the lines are posted.
Unmatched TransactionsLines Finac could not assign to a ledger with confidence. These need a decision.
Matched TransactionsLines assigned to a ledger and posted, by value and count.

Below the cards, the Status chips (Posted, Manually Posted) and Type chips (Debit, Credit) filter the list, and the search box finds a line by narration or amount. Each transaction row shows the date, the bank's narration, the amount coloured red for a debit and green for a credit, and the Customer/Supplier/Ledger it has been, or will be, posted to. A bank charge is suggested as Bank Charges; a TDS challan payment as TDS Payable; a NEFT to a named party as that party's ledger.

Posting and matching

  1. For a posted line, View opens the resulting entry.
  2. For an unmatched line, choose the ledger in the Customer/Supplier/Ledger dropdown. Use the plus icon beside it to create a customer, supplier or ledger that does not exist yet.
  3. Select Post. Where the party has an open invoice for the amount, the payment is allocated to it and the invoice's payment status changes to Paid or Partial Paid; otherwise the transaction is posted to the party's ledger for allocation later.
  4. Use the comment and attachment icons on a row to record why a line was coded a particular way or to attach the supporting document.

The refresh icon above the list re-runs the matching, which picks up invoices recorded after the statement was uploaded. Lines that cannot be identified should be left unposted with a comment rather than posted to a guessed ledger; a suspense entry is easier to clear than a wrong posting is to find.

Where the entries go

Each posted line becomes an entry on the Other Entries tab of Invoicing Advanced, showing the bank account on one side and the party or expense ledger on the other, with the document ID and who posted it. The bank ledger's balance in the trial balance moves with each posting, and the closing balance shown in the statement header is the figure to agree it to.

Other Entries tab listing posted bank transactions, each with a credit and debit line, the bank account and counterparty ledger, amount, modified by and date
Other Entries after posting: each bank transaction appears as a paired debit and credit between the bank account and the counterparty ledger.

Frequently asked questions

I uploaded the same statement twice. Are the entries doubled?

No. Finac recognises transactions already present from an earlier upload and marks them as duplicates rather than posting them again. Both uploads remain in the list; use the later one for review.

The bank is not in the Ledger dropdown.

Add the account under Settings > Accounts Manager with the account type Cash & Cash Equivalents, then upload again.

Can I upload a PDF statement?

The dialog accepts CSV, XLS and XLSX. Download the statement in one of those formats from net banking, or send the PDF to the Finac team through Support and it will be converted and uploaded for you.

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