BRS In Tally Prime: Purpose, Format, And Method Of Preparation

BRS in Tally Prime helps maintain some accurate accounting data in the complex accounting world. The main purpose of BRS is to identify any kinds of errors that can affect your tax position and financial errors.

You will know from this blog about the process of maintaining BRS in Tally Prime. The process of generating the reports from Tally Prime you will also learn from it. It also helps in detecting any kind of errors, frauds, and omissions at the time of preparation.

So, let’s understand some of the core concepts of it while meeting your needs with ease. This is why you must know the basic concepts of BRS before you make its application to Tally Prime.

What Is A Bank Reconciliation Statement?

A Bank Reconciliation Statement is a financial Statement that compares and matches a company’s internal cash records (from its accounting books) with the bank statement provided by the bank. Its purpose is to identify and explain any differences between the two records, ensuring accuracy in the company’s financial reporting.

Steps To Maintain BRS In Tally Prime

There are some simple steps you need to follow or maintain the BRS in Tally Prime. Some of the key steps that you should follow here are as under.

1. Set Reconciliation Beginning Date

In the Tally prime at the place of the Ledger creation or alteration screen, you should specify the date when you want to start reconciling the process of the transaction.

• Alter / Set Bank configuration to Yes.
• Reconciliation Beginning Date: You need to here enter the date.

All the process of reconciliation will be available to you from the date specified here.
You can easily set all the banking activities in the following manner:-

• In the screen of Banking Activities Press (Alt +H) this is for opening BRS.
• From the list of Bank ledgers select the Bank Ledger.
• Press Alt +R( You must set the Reconciliation Beginning date).
• In the set Recon Beginning date screen, you should enter the date.

2. Alter/ Set Opening BRS

In the process of the Ledger creation/ alteration screen, you can easily view all the transaction that forms a part of the opening BRS. Whenever you alter the ledger you can easily add the transactions that forms the part of opening BRS.

1. Set/ Alter Bank Configuration to Yes

2. Alter/ Set Opening BRS to Yes

This option is possible only during the alteration of the ledger.

3.Press Alt +L You need to update the opening BRS.

4.Enter The Details Of The Transaction

• Date
• Particulars
• Nature of Transaction
• Transaction Type
• Remarks
• Deposit/ Withdrawal
• Instrument No
• Instrument Date

You must press Ctrl +A to save the complete configuration.

3. Import The Bank Statements

You can easily import the bank statements from Tally Prime. There are certain conditions you need to fulfill if you want to import a bank statement. Some of these conditions are as follows:-

• The statement is open already.
• If the statement is not present in the correct format.
• You do not have the right permissions.

1. Gateway of Tally > Press Alt +O > Bank Statement
After that import bank statement screen appears

2. In the bank Statement screen select bank ledger, after that you need to specify the file path. After that, you need to select the file type as supported. Select the file to import and set all the previews as Yes

3. Press CTRL+A in order to import the bank statement. After this, a Bank statement Preview will appear

4. In the Bank statement Preview Screen you must press I to import the bank statement. You can import the total number of entries present. All the exact matches of the summary imported statement you can view from it.

5. You should Press S for maintaining the bank reconciliation summary this will help you to go to the bank reconciliation summary report.

4. Import All The Bank Data Report

You must open the imported bank data report to view the complete transactions. This will be done along with the count and amount. For all the withdrawals from the selected banks. Using this report, you can reconcile the transactions by finding potential and matched suggestions. You can also set the status of individual transactions. BRS in Tally Prime needs precision and accuracy.
Let’s find out the steps to understand it better

• Press Alt +G > Type Or select all the imported data.

• This is an alternative way:- Gateway of Tally > Banking > Imported Bank Data

• You need to select the banks from the List of Banks
• The imported bank data screen will appear in the following way.

You can easily view the monthly summary of the imported bank data. If you want to view the transaction amount that appears in the corresponding month then you need to press F6 ( Monthly). Now if you press Alt +F6 then you can view the quarterly summary.

5. Open The Banking Activities Report

The banking activity report will give you an idea about banking reconciliation. It shows how many transactions you need to reconcile within a particular period. Now, if the e-payments are enabled for your bank. It also includes all the details of the payments that help you to easily track all the transactions.

6. Open The e-Payment Report

If you drill down the e-payments column on the banking activities report then you will witness that e-payment reports display all the details of the complete transaction. Under the column of pending or sending of the transactions then sending to bank unreconciled.

All images sourced from TallySolutions.com

Purpose Of Bank Reconciliation Statement

There are several purposes of a Bank Reconciliation statement that you must be well aware of. Some of the key purposes of the Bank reconciliation statement are as follows:-

1. Identify & Resolve Discrepancies

The BRS compares the company’s cash book (internal records) with the bank statement to detect differences caused by timing issues, errors, or unrecorded transactions (e.g., outstanding checks, deposits in transit, bank fees, or interest). It ensures discrepancies are investigated and corrected promptly.

2. Ensure Accuracy Of Financial Records

By reconciling the cash book with the bank statement, the BRS confirms that the company’s recorded cash balance is accurate and reflects all transactions, enhancing the reliability of financial statements.

3. Detects Errors & Frauds

The BRS helps identify errors in the company’s books (e.g., incorrect entries, double postings) or bank errors (e.g., wrong charges or credits). It can also uncover fraudulent activities, such as unauthorized withdrawals or manipulated transactions.

4. Verify The Cash Balances

The BRS ensures that the cash balance reported in the company’s books matches the actual balance in the bank account after accounting for pending transactions, providing a true picture of available funds.

5. Facilitates Audits & Compliances

A regularly prepared BRS is essential for audits, as it demonstrates that the company’s cash records are accurate and reconciled with external bank records, ensuring compliance with accounting standards and regulations.

How often do you require to produce a BRS in Tally Prime?

The frequency of producing a Bank Reconciliation Statement (BRS) depends on the size, transaction volume, and financial management needs of a business. However, common practices are:

1. Monthly( Most Common)

Most businesses prepare a BRS once a month, typically after receiving the bank statement. This aligns with financial reporting cycles, ensures timely detection of discrepancies, and keeps cash records accurate for audits and decision-making.

2. Weekly ( For High Transaction Business)

Businesses with high transaction volumes (e.g., retail, e-commerce) may reconcile weekly to monitor cash flow closely, prevent overdrafts, and quickly identify errors or fraud.

3. Daily ( For Large Enterprise)

Large organizations or those with complex banking operations (e.g., multiple accounts, significant daily transactions) may perform daily reconciliations to maintain real-time accuracy and manage liquidity effectively.

4. As Needed( For Small businesses)

Small businesses with low transaction volumes may reconcile quarterly or as needed, especially if they have limited banking activity. However, monthly reconciliation is still recommended to avoid accumulating discrepancies.

How To Generate BRS Reports In Tally Prime?

Generating a Bank Reconciliation Statement (BRS) report in Tally Prime is a straightforward process that helps you review reconciled and unreconciled transactions, ensuring your company’s cash records align with the bank statement. Below are the step-by-step instructions to generate and customize BRS reports in Tally Prime.

Steps to Generate BRS Reports in TallyPrime

Step 1: Access the Bank Reconciliation Screen

• Open TallyPrime and Select Company:

  • Launch TallyPrime and select the company for which you want to generate the BRS report.

• Navigate to Bank Reconciliation:

  • From the Gateway of Tally, go to Banking > Bank Reconciliation.
  • Alternatively, press Alt+G (Go To) > type or select Bank Reconciliation > press Enter.

• Select Bank Account:

  • From the List of Bank Ledgers, select the bank account for which you want to generate the BRS report (e.g., HDFC Bank, State Bank of India).
  • Press Enter to open the Bank Reconciliation screen, which displays transactions and reconciliation details.

Step 2: Ensure Reconciliation is Complete

• Verify Reconciled Transactions:

  • In the Bank Reconciliation screen, ensure all transactions are reconciled by:
    • Entering the Bank Date (the date the transaction cleared in the bank, as per the bank statement) for matched transactions.
    • Marking transactions with the Spacebar to confirm reconciliation.
    • Creating vouchers for unrecorded items (e.g., bank charges, interest) using Alt+C or C: Create Voucher.
  • Leave outstanding transactions (e.g., uncashed checks, deposits in transit) with a blank Bank Date.

• Check Balances:

  • Review the following in the Bank Reconciliation screen:
    • Balance as per Company Books: TallyPrime’s cash book balance.
    • Amount Not Reflected in Bank: Outstanding transactions (e.g., checks not cleared, deposits in transit).
    • Amount Not Reflected in Company Books: Unrecorded bank transactions (e.g., fees, interest).
    • Balance as per Bank: The reconciled balance matching the bank statement.
  • Save the reconciliation with Ctrl+A after verifying.

Step 3: Generate the BRS Report

• View the BRS Report:

  • The Bank Reconciliation screen itself serves as the BRS report, showing:
    • All transactions (reconciled and unreconciled).
    • Opening and closing balances.
    • Details like voucher number, date, amount, and bank date.
  • This is the default BRS report format in TallyPrime.

• Customize the Report (Optional):

  • Press F12 (Configure) in the Bank Reconciliation screen to customize the report:
    • Show Narrations: Set to Yes to include transaction narrations.
    • Show Instrument Details: Set to Yes to display cheque numbers or reference numbers.
    • Show Reconciled Transactions: Choose Yes to include reconciled transactions or No to show only unreconciled ones.
    • Period: Press F2 (Period) to set the date range for the report (e.g., April 1, 2024, to April 30, 2024).
  • Press Ctrl+A to save the configuration.

• Filter Transactions (Optional):

  • Press Alt+F12 (Filter) to filter transactions by:
    • Reconciled/Unreconciled Status: Show only reconciled or unreconciled transactions.
    • Amount Range: Display transactions within a specific amount range.
    • Voucher Type: Filter by payment, receipt, or contra vouchers.
  • Apply filters and press Enter to update the report.

Step 4: Print or Export the BRS Report

• Print the BRS Report:

  • In the Bank Reconciliation screen, press Ctrl+P or click P: Print to open the Print Report screen.
  • Configure print settings:
    • Show Narrations: Set to Yes for detailed descriptions.
    • Vouchers to Show: Choose All Vouchers, Reconciled Vouchers, or Unreconciled Vouchers.
    • Show Instrument Details: Set to Yes to include cheque numbers or transaction references.
    • Include Opening Balance: Set to Yes to show the opening balance as per the bank statement.
  • Press Enter to print the report directly to a connected printer.

• Export the BRS Report:

  • To save the report as a file:
    • Press Ctrl+E or click E: Export in the Bank Reconciliation screen.
    • Select the format: PDF, Excel, CSV, or JPEG.
    • Specify the file path (e.g., C:\Reports\BRS_April2024.pdf).
    • Press Enter to export the report.
  • Exported reports are useful for audits, sharing with stakeholders, or record-keeping.

• Email the BRS Report (Optional):

  • Press Ctrl+M or click M: Email to send the report directly.
  • Configure email settings (e.g., recipient’s email, SMTP server details).
  • Select the format (e.g., PDF) and send the report.

Step 5: Review Additional BRS-Related Reports (Optional)

• Access Related Reports:

  • From the Gateway of Tally, go to Display More Reports > Banking to view:
    • Aging of Outstanding Cheques: Tracks overdue checks not yet cleared.
    • Aging of Unpresented Deposits: Monitors deposits not yet reflected in the bank.
  • These reports complement the BRS by providing insights into pending transactions.

• Drill Down for Details:

  • In the Bank Reconciliation screen, select a transaction and press Enter to drill down to the voucher details for further analysis or correction.
  • Press Alt+F2 to change the period or Alt+F12 to filter specific transactions.

Bank Reconciliation Statement Format

Frequently Asked Questions

What Is The Purpose Of A Bank Reconciliation Statement (BRS) In TallyPrime?

Answer: The BRS in Tally Prime compares the company’s cash book (internal records) with the bank statement to identify and resolve discrepancies, such as unrecorded transactions (e.g., bank charges, interest), outstanding checks, or deposits in transit. It ensures accurate financial records, detects errors or fraud, and supports audit compliance.

2. How Do I Start Reconciling A Bank Account In TallyPrime?

Answer:

• To begin BRS in Tally Prime, go to Gateway of Tally > Banking > Bank Reconciliation or press Alt+G (Go To) > Bank Reconciliation.
• Select the bank ledger (e.g., HDFC Bank) from the List of Bank Ledgers.
• Enter the Bank Date for cleared transactions as per the bank statement, create vouchers for unrecorded items using Alt+C, and leave outstanding transactions (e.g., uncashed checks) blank.
• Save the reconciliation with Ctrl+A.

3. How Can I Import A Bank Statement For Auto Reconciliation In TallyPrime?

Answer:

• Configure the bank ledger for auto reconciliation: Go to Alter Ledger, enable Auto Reconciliation, and set folders for New Bank Statements and Imported Bank Statements.
• Download the bank statement in Excel, CSV, or MT940 format and save it in the New Bank Statements folder.
• In the Bank Reconciliation screen, press Alt+O > select the file and format > import.
• TallyPrime matches transactions automatically and highlights unmatched ones for manual reconciliation.

4. Why Do The Balances In TallyPrime And The Bank Statement Not Match After Reconciliation?

Answer: Mismatches can occur due to:

• Unrecorded transactions (e.g., bank fees, interest) not entered in TallyPrime.
• Outstanding checks or deposits in transit not yet cleared by the bank.
• Errors in voucher entries or bank statement data.
• Incorrect Opening BRS settings. To resolve, verify the bank statement, create vouchers for missing transactions, check the Opening BRS (press U: Opening BRS), and ensure all transactions are correctly marked.

5. How Do I Print Or Export A BRS Report In TallyPrime?

Answer:

• In the Bank Reconciliation screen, complete the reconciliation and press Ctrl+P to print or Ctrl+E to export.
• For printing, configure settings like Show Narrations or Vouchers to Show (e.g., All, Reconciled, Unreconciled) and press Enter.
• For exporting, choose a format (PDF, Excel, CSV, or JPEG), specify the file path, and press Enter.
• The report includes reconciled/unreconciled transactions and balances for audit or record-keeping.

Final Take Away

Hence, if you want to maintain proper records of your accounts then use of BRS in Tally Prime can be of great help to you. Ensure that you follow the steps properly while maintaining the records in BRS using Tally Prime Software.
You can feel free to share your views with us in this regard. This will help us to know your take on this matter. Ensure that you know the process of BRS in Tally Prime from your end while meeting your needs with ease.