Manually Performing External Reconciliations 
You can manually perform reconciliations when you want to reconcile a small number of transactions, when partial reconciliations are required, or when transactions posted to more than one business partner or G/L account. The External Reconciliation window displays transactions recorded in your books against the transactions recorded by your bank or a business partner. You reconcile between matching transactions, and, if required, perform balancing transactions to match your data with that of the bank or business partner.
Note
If bank statement processing is activated in SAP Business One, you must perform external reconciliations directly within the bank statement processing functionality. Do not use this function to reconcile transactions from your bank statements. For more information, see the online help for SAP Business One and How to Use Bank Statement Processing in Release 2007 in the documentation area of SAP Business One Customer Portal at http://service.sap.com/smb/sbocustomer/documentation.
Recommendation
For the same bank account, we recommend that you use exclusively either this function or the localized function for manually reconciling bank statements (see Manually Reconciling Bank Statements: AU, BR, CA, CN, CY, GB, IN).
Prerequisites
You have recorded transactions from your external bank or business partner statements in SAP Business One (see Recording Transactions from External Statements).
Procedure
From the SAP Business One Main Menu, choose
Banking 
Bank Statements and External Reconciliations Reconciliation 
.The External Reconciliation – Selection Criteria window appears.
To specify whether to reconcile transactions of a business partner or G/L account, from the Select Source dropdown list select Business Partner or G/L Account.
Select the Manual radio button and specify the selection criteria.
Choose Reconcile.
The External Reconciliation window appears.
The window is divided into four tables:
The tables on the left display the open transactions in books; the tables on the right display the open transactions in external statements.
The upper tables display the open transactions on both sides (books and bank) that meet the selection criteria in the External Reconciliation - Selection Criteria window. The lower tables display the transactions that you selected for reconciliation.
Select the transactions to be reconciled from both sides of the upper section. To move the selected transactions to the lower half of the window, double-click the selected transactions or click
.In the lower tables, the values in the Amount columns are summed. The total of all selected transactions in each lower table is displayed at the bottom of the Amount column. In addition, the reconciliation difference is displayed to indicate whether the reconciliation is balanced or not.
For every transaction you move to the lower tables, SAP Business One recalculates the reconciliation difference.
When all relevant transactions from both sides of the upper section are in the lower half of the window, choose Reconcile.
If the amounts for the reconciled transactions from both sides are not identical, the reconciliation is not balanced. A message notifies you of this situation and asks you if you want to create a balancing transaction.
To create a balancing transaction, choose OK.
The Journal Entry window appears with a row that represents the difference between the two transactions. Complete the journal entry. To create the journal entry and perform the reconciliation, choose Add.
To cancel the reconciliation, choose Cancel.
Result
SAP Business One reconciles the selected transactions.