Overview: What Epicor Bank Reconciliation Does
Epicor's bank reconciliation tool (under Cash Management) lets you match your GL-side cash transactions to your bank statement. When complete, the reconciliation proves that your books and your bank agree — adjusted for timing differences (outstanding checks and deposits in transit).
The reconciliation does not automatically fix discrepancies — it surfaces them so you can investigate and correct.
Step-by-Step: Bank Reconciliation in Epicor Kinetic
Navigate to Bank Reconciliation
Go to Financial Management > Cash Management > General Operations > Bank Reconciliation. In Kinetic, you can also search "Bank Reconciliation" in the global search bar.
Select the Bank Account and Reconciliation Date
Select the bank account you're reconciling. Enter the Statement Date (the date on your bank statement) and the Statement Ending Balance from the bank statement.
Review and Clear Transactions
Epicor shows all uncleared transactions for the bank account up to the statement date. Go through each transaction and mark it as Cleared if it appears on your bank statement. Common transaction types to match:
- AP check payments
- AR cash receipts / deposits
- Bank fund transfers
- Manual journal entries to the cash account
Calculate the Reconciled Balance
Epicor will show you the running difference between the bank statement balance and the GL balance, adjusted for cleared/uncleared items. When this difference is zero, you're reconciled. The math should be:
Bank Statement Balance
+ Outstanding Deposits (in Epicor, not on statement)
− Outstanding Checks (in Epicor, not cleared on statement)
= GL Cash Account Balance
Post the Reconciliation
Once the difference is zero, post the reconciliation. This marks the cleared transactions as reconciled and creates a permanent record.
Common Discrepancies and How to Fix Them
The Difference Is Exactly One Transaction Amount
This is the most common scenario. A specific check or deposit appears on the bank statement but is either missing from Epicor or was posted to the wrong period. Check:
- Was the transaction entered in Epicor at all? Check AP payment history or AR cash receipts.
- Was it posted to the right bank account? A payment posted to the wrong bank account won't appear in this reconciliation.
- Was it posted to a prior period that's already reconciled? Prior-period transactions won't show in the current reconciliation window.
Bank Fund Transfers Creating Duplicate Entries
If your reconciliation shows double entries for bank transfers (e.g., a transfer from checking to savings appears twice), you likely have a posting rule issue — see our guide on How to Edit Posting Rules in Epicor.
Old Outstanding Items That Will Never Clear
Checks that were voided manually without recording the void in Epicor, or deposits that were reversed at the bank, will show as perpetually outstanding. These need to be written off via a journal entry to the cash account — but make sure you understand why each one is outstanding before adjusting.
Run the Outstanding Checks report (Financial Management > Cash Management > Reports) before reconciling. Any check older than 90 days that hasn't cleared deserves investigation — it may be lost, uncashed, or voided in the bank but not in Epicor.
When the GL Cash Balance and the Bank Don't Match at All
If the starting point is already off before you've cleared anything, the issue is usually:
- A journal entry was posted directly to the GL cash account, bypassing the bank module — this won't appear in the bank reconciliation transaction list
- The prior period reconciliation was posted with an error and never corrected
- Transactions were posted to the wrong bank account and need to be re-classified
To find direct-to-GL cash postings, run a GL transaction detail report for the cash account and look for journal entries that don't correspond to AP payments or AR receipts.
Still Stuck? We Can Help.
If this guide didn't fully resolve your issue — or you're dealing with something more complex — our Epicor consultants are available same-day. No long-term contract required.