Automated bank reconciliation: eight questions for a software demo
Bank reconciliation compares bank movements with accounting records so a team can confirm what was paid or collected and identify differences. Exact matches are straightforward. The useful test is how the software handles movements that do not correspond to one invoice for one amount.
This is an educational guide. Calitem does not perform bank reconciliation. Its role in accounts payable ends with accounting preparation and validated ERP submission.
Four cases to include in the test
Partial payments
One invoice may be paid in several instalments. The system should show how it proposes a partial match, how the outstanding balance remains visible, and what a reviewer must confirm.
Grouped payments
One transfer may cover several invoices. Ask the software to identify the possible group and show why the total matches, rather than testing only one-to-one examples.
Fees and deductions
A bank movement may differ from the invoice because of fees, discounts, or other deductions. Check whether the product separates those amounts and how the accounting treatment is reviewed.
Currency differences
An invoice and its payment may use different currencies or exchange rates. The demo should show the original values, the converted amount, and any difference that remains for review.
Bank data is part of the product test
The reconciliation result depends on the detail and frequency of bank data. Ask which of your banks are supported, what fields arrive through the connection, how often they update, and what manual file import remains necessary.
Do not treat “Open Banking,” “API,” or “real time” as proof on their own. Test the exact institutions and account types you use.
Eight questions for the vendor
- What proportion of our normal movements can the product propose as matches on a representative month?
- How does it represent partial payments and the remaining balance?
- How does it propose a group of invoices for one payment?
- How are fees, discounts, and deductions separated?
- How are currencies and exchange-rate differences handled?
- Which of our banks and account types connect directly, and how often do they update?
- What source data and reasoning can the reviewer see for each proposed match?
- How is an incorrect match reversed, corrected, and reflected in later proposals?
Use your own statement and accounting records in the demo. A percentage from a prepared vendor dataset does not predict the result on your references, payment habits, banks, and currencies.
Where Calitem stops
Calitem receives supplier invoices, extracts their data, detects duplicates, matches invoices with purchase orders and delivery notes, routes approvals, and prepares journal entries for review and ERP submission.
Bank movements, payment matching, and bank reconciliation remain in the ERP or specialist banking tool. The relevant integration question is whether the validated supplier and accounting data reaches that system with the references needed for the later bank process.