This document provides instructions for using the bank reconciliation tab in the PAT 3 workbook. The tab allows the user to reconcile bank account balances by entering statement dates and balances, then automatically populating transactions for selected accounts. Any differences between the balances should be resolved by checking transactions against the statement and recording outstanding items in the reconciliation tab.

1. PAT 3 – Guide
Part 8 – Bank Reconciliation
This tab is optional. Choosing not to use it will not affect other
areas of the workbook

2. PAT 3 – Guide
The bank reconciliation tab is used to ensure that your bank
account balances. The steps to use this are as follows:
1. Identify which accounts within
PAT you wish to reconcile
(sometimes your main bank
account may cover more than
one account in PAT, e.g. your
fabric fund is in your main
account but is ringfenced for a
restricted purpose).
2. Mark the accounts you wish to
reconcile as Include.
3. Enter the dates on your bank
statement (to and from) along
with the opening and closing
balances on the statement.

3. PAT 3 – Guide
The workbook will then automatically include the amounts of all transactions
(receipts/payments and transfers) for the selected accounts in the period specified.
Scroll down to line 57. If your bank reconciles, the difference figure should be zero. If it
is not zero, your bank does not currently reconcile. You should therefore refer to the
following slides.

4. PAT 3 – Guide
The reason the bank does not reconcile is because either some items are included on
PAT but are not on your statement or are on your statement but not included on PAT.
In order to identify these, it is best to go through the receipts and payments tabs
checking the items against your statement (tick the statement and use the bank rec
check options in PAT by inputting a “Y” when you find an item which is in both).
E.g.

5. PAT 3 – Guide
Where you find an item is not marked as yes on the bank rec check for the period. You
will need to enter this detail in the bank reconciliation tab as follows:
Item identified when preparing bank rec (receipts):
Details as input on Bank Reconcilation tab

6. PAT 3 – Guide
Items identified when preparing bank rec (payments):
Details as input on Bank Reconcilation tab

7. PAT 3 – Guide
Once these items have been input, the Difference should go to zero. The most likely
reason for this not happening is when a transaction was accounted for in the previous
year but the income/expenditure did not clear the bank until the following year.
If this is the case, you will need to ensure that these figures are included on the
reconcilation tab as per the previous two examples. You would not enter these into the
accounts again as they have already been accounted for in the previous year.