I've been using Sage for only 2 years and the bank account reconciliations have always gone well. We don't normal incur account expenses but when they did occur, I simply created an expense and allocated it to the Bank Charges account automatically created for this purpose during company setup. The bank account has always reconciled using this approach and all bank charges were accounted in the proper GL.
I was processing last month's statement and was browsing Sage Help on the Reconciliation topic (I know...always dangerous, right?;-) ). I noticed that account expenses could be entered on the Reconciliation dialog under the Expense tab. I tried this method, the account balanced with nothing unresolved and I noticed a new line appeared on the reconciliation report, "Subtract: Expense Bank Transactions (Not recorded in account)". I understand why it's there. It's the "Not recorded in account" statement that has me slightly concerned.
Before I post the reconciliation, I would like to know if the expense will be posted to the Bank Charges GL and if this is, in fact, the preferred way to account for bank charges? Is there a difference between the two methods?
