How does bank reconciliation work in Mygate?

MyGate automatically generates a bank statement based on the entries made by accountants or the transactions generated when residents make online payments. The posting date of a transaction in MyGate might differ from its actual realization date in the bank.

For instance, when residents issue cheques, the payment is recorded in the MyGate system on the same day, but the funds will be deposited into the society’s bank account after 2 to 3 days, depending on the realization date. Similarly, when a resident makes an online payment via the MyGate app, the payment gateway processes the payment and settles the amount to the society’s bank account on the next working day.

As a result, when comparing the MyGate bank statement with the actual bank statement, discrepancies may arise due to the difference in the realization dates. The Bank Reconciliation module in MyGate accounts for this by capturing the actual bank realization date, ensuring that the bank balances reflect the correct values in the Reconciliation Report.

For example, in the MyGate statement, the balance today might show ₹10,000, comprising two transactions of ₹5,000 each from two residents. Resident 1 made a cheque payment, while Resident 2 paid via UPI. The actual bank statement, however, will show only ₹5,000 (the UPI payment), and the cheque payment will be realized in the bank 2-3 days later. During the reconciliation process, the admin will enter the actual bank credit date for both payments, allowing the MyGate system to adjust the balance based on the true bank realization date and reflect this in the Reconciliation Report.