Klarbon adds the transactions in your bank file to its opening balance and compares the result with the closing balance the file states. When they differ, the file does not hold every transaction of its period as booked: often a partial download, a missing or doubled transaction, or a file that mixes accounts or currencies. A statement that does not reconcile cannot be downloaded, so you are not charged.
How does the balance check work?
Klarbon takes the opening balance, adds every credit, subtracts every debit and compares the result with the closing balance in the file. Where the file gives a balance after each transaction, each of those is checked as well, always against the opening balance plus every preceding transaction. Where the file carries its own transaction counts or totals, those are checked too. Amounts are compared exactly, with no rounding tolerance.
Some files state no balances at all, QIF for example. Klarbon then asks you for the opening balance before it continues. A file that gives only one of the two balances can be checked only against its own totals, and Klarbon says so next to the result.
Reading statements from PDF is not available yet, so the check runs on bank statement files such as CAMT.053, MT940, CODA or OFX.
A synthetic example that reconciles:
| Item | Amount |
|---|---|
| Opening balance | EUR 1,000.00 |
| Money in | + EUR 450.00 |
| Money out | - EUR 380.25 |
| Calculated closing balance | EUR 1,069.75 |
| Printed closing balance | EUR 1,069.75 |
| Difference | EUR 0.00 |
What does a difference mean?
It means the transactions in the file do not add up to the balances the bank put in it. Klarbon reports the difference and, where the file gives a balance after each transaction, the first transaction after which they stop matching. That is usually where to look.
| Pattern | Likely cause |
|---|---|
| Difference equals one transaction amount | a transaction is missing from the file or appears twice |
| Difference is twice a transaction amount | a transaction carries the wrong debit or credit mark |
| Difference equals the sum of several days' transactions | the file covers only part of the period, or one statement in a series is missing |
| Closing balance belongs to another currency | the file mixes several currency accounts |
What should I try?
Start with the file itself.
- Download the file again from your online banking. An interrupted or edited file is the most common cause.
- Choose a booked statement. A CAMT.053 or MT940 statement covers booked transactions with an opening and a closing balance. An intraday report (CAMT.052 or MT942) can hold pending entries that change before the day closes.
- Cover the whole period. If you export a date range, make sure it starts and ends on statement boundaries, so the opening and closing balances belong to the same transactions.
- Convert one account and one currency at a time. When a file holds several accounts, Klarbon asks which one to convert.
- Check the formats Klarbon reads. See supported bank statement files.
Do I pay for a statement that does not reconcile?
No. A statement that does not reconcile cannot be unlocked, so no credit is used. Klarbon will not write a CSV, Excel, MT940, CAMT.053 or OFX file from a statement whose figures do not add up. See prices.
Does a matching balance prove every row is right?
No. It proves the amounts and their signs add up. A wrong date, description or counterparty does not change the balance, and two opposite errors can cancel out. Before you import, compare the number of transactions and a few rows with the original, especially fees, card payments in another currency and transfers between your own accounts.
When should I ask my bank or accountant?
Ask your bank if the printed balances themselves look wrong, or if you need a statement for a closed account. Ask your accountant how to treat transactions that were reversed, pending or booked in a different period. Klarbon checks that a statement adds up; it does not judge how it should be booked.
Related
Frequently asked questions
What does a non-zero bank reconciliation difference mean?
The opening balance plus the transactions in the file does not equal the closing balance the file states. Usually the file covers only part of the period, a transaction is missing or held twice, or the file mixes accounts or currencies.
Do I pay for a statement that does not reconcile?
No. A statement that does not reconcile cannot be unlocked or downloaded, so no credit is used.
Is there a rounding tolerance?
No. Amounts are compared to the cent. A difference of EUR 0.01 is a difference.
Does a matching balance prove every transaction is right?
No. It proves the amounts and their signs add up. Dates, descriptions and counterparties can still be wrong, and two opposite errors can cancel out.
What should I try when the balances do not match?
Download the statement file again from your online banking for one account and a complete booking period, as a booked statement (CAMT.053 or MT940) rather than an intraday report, and convert one account and currency at a time.
Sources
- Huntington Bank developer documentation, CAMT.052 intraday account report developer.huntington.com