Bank Charges and Interest Posted from Statements

Bank charges, cheque return fees, the GST on them and overdraft interest are picked off the statement. They are posted to the heads that the accountant names.

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Small amounts through the month

A folio charge, an SMS alert charge, a cheque return fee and the GST on each arrive on the statement whether or not anyone records them. Individually the amounts are small. Together they are a cost that a profit statement leaves out until reconciliation day.

What gets picked off the statement

The charge and its GST

Both lines are posted, to the expense head and to the input credit head that the accountant names once at set-up.

Cheque return fees

The fee is posted, and the returned instrument stays visible instead of disappearing into a total for charges.

Overdraft interest

Interest debited on a limit account goes to its own head, month by month, so the cost of the overdraft is a number that can be read.

Repeating charges

A rule handles a charge that lands on the same day each month with the same narration. It is typed once.

What is available at month end

Bank charges and interest posted for the month, account by account
The statement line behind each posting
Cheque return fees, listed apart from routine charges
Entries exported for the accountant to bring into Tally

FAQ

Frequently asked questions

Does it decide which ledger head a charge belongs to?

No. The accountant decides that once, and the rule follows from then on. A new or unusual line goes to the unmatched list with a question against it.

Does it claim the GST on bank charges?

No. It posts the GST to the head that you name, so the figure is in the books. Whether it is claimed is a matter for your CA on the return.

What happens when the bank writes the narration differently every month?

A rule on narration will not hold in that case, and those lines come to the unmatched list. Many are caught by amount and day instead. The rest are handled one by one.

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What happens after you share your requirements

A senior engineer reads your answers. Nobody phones first.
Within one business day you get a written note: what we understood, what we would start with, and the questions we still have.
If it fits, a proposal follows with the order of work, what we need from you and what you receive at each step.
No call is booked and nothing is paid until you have read the note. Your details stay with us.

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