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What BRS means in Tally
A Bank Reconciliation Statement (BRS) compares the transactions in your Tally bank ledger with the transactions on the bank’s statement. The balances can differ because of timing, omitted vouchers, bank-originated entries, duplicate records, or errors in dates, amounts and instrument numbers.
Reconciliation is not a way to force two balances to agree. For every difference, you should link the correct records, post a missing voucher, correct the books, leave a legitimate timing item outstanding, or investigate it with supporting documents.
Check your TallyPrime version and prerequisites
The statement-based workflow below applies to TallyPrime Release 6.0 or later. Older TallyPrime and Tally.ERP installations can use different menu names and capabilities.
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- The original statement downloaded from the bank portal.
- Transaction dates, amounts, cheque or instrument numbers and bank allocations recorded correctly in Tally.
- Write permission for the folder containing the statement.
- A supported statement file: CSV, Excel or MT940. TallyHelp says PDF files, including CSV or Excel files converted from PDF or third-party tools, are not supported for direct import: TallyPrime banking FAQ.
Supported-bank coverage varies by bank and file format; Tally’s documentation cites different coverage figures on different pages. Check the current supported-bank list or contact Tally if your file is not recognised.
Step 1: Set the Reconciliation Beginning Date
This date is the point from which TallyPrime actively reconciles transactions. Choose a switch date for your business, rather than automatically loading every historical item.
From the bank ledger
- Open the bank ledger in alteration mode.
- Set Set/Alter Bank configuration to Yes.
- Enter the Reconciliation Beginning Date.
From Banking Activities
- Press Alt+G and open Banking Activities.
- Press Alt+H for Opening BRS.
- Select the bank ledger.
- Press Alt+R for Set Recon Beginning Date, enter the date and accept.
Transactions before this date are outside the active period unless you add them to Opening BRS. TallyHelp documents special migration behaviour in Release 6.0, including older unreconciled transactions and period settings; treat that as a version-specific migration issue, not a universal six-month accounting rule. See Tally’s reconciliation setup guide.
Step 2: Update Opening BRS only for old outstanding items
Opening BRS is for transactions recorded before the beginning date that are still genuinely unreconciled. First identify which items were already cleared, which remain outstanding, and whether a migration or company split carried them forward.
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- Open Banking Activities.
- Press Alt+H for Opening BRS and select the bank ledger.
- Press Alt+L for Update Opening BRS.
- Enter the date, particulars or ledger, deposit or withdrawal, transaction type, remarks, amount and instrument number where applicable.
- Press Ctrl+A to save.
The Opening BRS transaction date should be before the reconciliation beginning date. Do not re-enter all history or duplicate items already reconciled.
Step 3: Import the bank statement
- From the Gateway of Tally, press Alt+O for Import.
- Select Bank Statement, then the Bank Ledger.
- Specify the File Path, choose the file type and select the statement.
- Set Show Preview to Yes.
- Press Ctrl+A to import.
- In Bank Statement Preview, press I to complete the import.
- Review the summary and press S to open Bank Reconciliation Summary.
Before importing, close the statement file, check that it is readable, and confirm that its period overlaps the report period. The statement date must be later than the reconciliation beginning date. If Tally says the statement is already open, rename the file by adding -imp before the extension—for example, file.csv to file-imp.csv—then try again. Details are in Tally’s bank-statement import instructions.
Step 4: Reconcile exact matches
Open the Bank Reconciliation report and review the Exact Match section. TallyHelp states that exact matching and automatic reconciliation depend on both the amount and instrument number matching the bank transaction.
- Select one or more exact matches.
- Press F8 (Reconcile).
Even exact matches deserve a sample check of the date, instrument number, ledger and statement line. Matching amounts alone are not sufficient evidence where recurring payments or duplicate cheques exist.
Step 5: Review potential and partial matches
Potential matches
TallyPrime may suggest matches using instrument date, amount and party. Review the underlying statement line before accepting one; a similar amount is not proof of identity.
One-to-many and many-to-one matches
The auto-reconciliation report supports one book transaction against one bank transaction, multiple book transactions against one bank transaction, and one book transaction against multiple bank transactions. Use Ctrl+F (Apply Filter) to filter by amount or instrument number, then press F8 to reconcile selected items.
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Partial matches
A partial difference can arise from bank charges, a typo, one bank transaction covering several book entries, or several bank entries covering one book entry. Alter the book transaction only when the statement and source documents support the correction. To add a relevant transaction in the Modify Matches screen, use F9 (Add). Do not use partial reconciliation to hide an unexplained difference.
Step 6: Record transactions appearing only in the bank
Bank-only entries commonly include charges, interest, direct deposits, standing instructions, loan or EMI debits, electronic collections, cheque returns and transfers omitted from Tally.
- Confirm the entry on the original statement.
- Identify the correct expense, income, customer, vendor, loan or suspense ledger.
- Create the appropriate receipt, payment, journal or transfer voucher.
- Enter bank allocation and relevant instrument details.
- Save the voucher, return to the reconciliation report and match it.
TallyPrime can help create a voucher from a bank entry, but the correct accounting classification remains a business or accountant decision.
Step 7: Handle transactions appearing only in the books
| Book-only item | Usually means | Action |
|---|---|---|
| Cheque issued but not presented | Legitimate timing difference | Leave unreconciled until it appears, then enter its bank date. |
| Deposit recorded but not credited | Deposit in transit | Keep outstanding and retain deposit evidence. |
| Transfer or payment pending | Bank processing delay | Check the statement and payment reference. |
| Old unexplained entry | Possible omission, duplicate or error | Investigate and correct; do not carry it forward indefinitely. |
| Duplicate or wrong voucher | Bookkeeping error | Correct or reverse the voucher with an audit trail. |
Manual reconciliation in TallyPrime
Manual mode is useful for a small ledger, an unsupported statement format, a bank-date workflow, or a history already reconciled manually.
- Press Alt+G and open Banking Activities.
- Select the bank ledger and drill into the Bank Reconciliation count.
- Open the Bank Reconciliation report.
- For each cleared book transaction, enter the date shown on the statement in Bank Date.
- Save and repeat for deposits, withdrawals, cheques and transfers.
To make this the default, open Banking Activities, press F12 (Configure), and set Use Manual Reconciliation as the default mode to Yes.
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Understand the reconciliation reports
Banking Activities
Use it as a workload overview for book-only and bank-only items. F4 selects the bank ledger, F5 switches to Amount View, Ctrl+H opens Deposits and Withdrawals–Unreconciled, Alt+F5 shows detail, and Ctrl+B changes the basis of values, including post-dated vouchers where applicable.
Bank Reconciliation Summary
Check unreconciled counts, amounts only in books, amounts only in the bank, Expected Bank Balance, Balance as per Bank Statement and the Difference. Expected Bank Balance is calculated from your recorded transactions; it is not an independent confirmation from the bank. A zero difference also cannot rule out offsetting errors.
Bank Reconciliation report
- Press Alt+G and open Banking Activities.
- Press Enter on the transaction count under Bank Reconciliation.
- In the summary, press Enter on Unreconciled Transactions.
This report supports matching, manual reconciliation, voucher creation and status changes.
Imported Bank Data
Open Alt+G > Imported Bank Data and select the bank. Use F6 for monthly view, Alt+F6 for quarterly view, F5 for Recon View, F8 to reconcile or modify, Alt+F8 to unlink, F9 to set status and Alt+S for Potential Matches.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Undo an incorrect match
- Open Bank Reconciliation Summary.
- Press F5 (View Reconciled) and select the relevant month.
- Open transactions under Reconciled via Linking.
- Select the wrong match and press Alt+F8 (Unlink).
- Return to the unreconciled report and match it correctly.
If a voucher was manually reconciled before a statement import, it may reappear as an unreconciled bank entry. Review its status and undo the earlier manual reconciliation when necessary before linking.
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Diagnose a remaining difference
- Confirm the report period and selected bank ledger.
- Check opening bank balance and statement closing balance.
- Verify the Reconciliation Beginning Date and Opening BRS.
- Review book-only and bank-only transactions.
- Search for duplicate amounts and instrument numbers.
- Check bank allocation on every relevant voucher.
- Look for transactions manually reconciled before statement import.
- Check for duplicate statement imports.
- Review post-dated-voucher settings and the last imported statement date.
- Confirm bank charges and direct credits have been posted.
- Reconcile or unlink only after reviewing the supporting statement and voucher.
| Problem | Likely cause | Correct action |
|---|---|---|
| Imported entries are invisible | Period, bank ledger or beginning-date mismatch | Correct the report period, ledger or reconciliation date. |
| Amount matches but no exact match | Instrument number differs or is duplicated | Correct the details or use a reviewed potential match. |
| Voucher is absent from BRS | Missing Bank Allocation | Alter the voucher, enter allocation and save. |
| Bank charge is unmatched | Missing expense voucher | Create and classify the correct voucher. |
| Wrong transaction is linked | Incorrect match | View reconciled transactions and press Alt+F8 to unlink. |
| Difference appears after migration | Old Opening BRS or manual-status issue | Review Opening BRS and transaction statuses. |
| PDF will not import | Unsupported format | Download CSV, Excel or MT940 from the bank. |
TallyHelp also associates potential-match memory errors with very large Opening BRS data and recommends a suitable beginning date and removal of unnecessary Opening BRS entries; treat this as a release-specific troubleshooting note.
Automatic or manual reconciliation?
| Choose automatic statement matching when | Choose manual reconciliation when |
|---|---|
| You have a supported CSV, Excel or MT940 statement, many transactions, consistent instrument numbers and bank allocations, or you want voucher creation from bank entries. | The format is unsupported, transaction volume is small, you work from bank dates, history is already manually reconciled, or you want a gradual transition. |
Automatic matching saves time but potential matches still require judgment. Manual work is slower but can be easier to audit for irregular or small ledgers. Both methods are supported in TallyPrime; see Tally’s bank-reconciliation overview.
Frequently Asked Questions
Can I perform BRS without importing a bank statement?
Yes. Use manual reconciliation and enter the statement’s bank date against each cleared book transaction.
Can TallyPrime import a PDF bank statement?
No. TallyHelp’s current FAQ says PDF statements and files converted from PDF or third-party tools are not supported for direct import. Obtain CSV, Excel or MT940 instead.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallDoes a zero difference prove the books are correct?
No. Compensating errors or an incorrect link can produce a zero difference. Check the voucher, bank date, instrument number, ledger and statement evidence.
Can I switch from manual to automatic reconciliation?
Yes, but review manually reconciled statuses first. A previously reconciled voucher can appear as a new bank-only item after import and may need its status changed before linking.
The Bottom Line
A sound BRS in TallyPrime classifies every difference instead of forcing a balance: link supported matches, post bank-only transactions, correct genuine book errors, and leave legitimate timing items outstanding until they clear.
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