How to reconcile a variance using manual journals in Zato

Why variances should be corrected through Zato journals rather than Xero, and the steps to do it.

If a small variance exists between the General Ledger (GL) and bank statement balances, all adjustments should be done through Zato via manual journals rather than syncing from Xero.

Why use Zato journals instead of syncing from Xero

Once a Zato job is in progress, adjustments should flow through Zato to keep all workpapers in sync. Posting the journal in Zato ensures the entry is reflected across all affected workpapers automatically.

Steps

  1. In Zato, navigate to the Manual Journals section.

  2. Create a new journal entry for the reconciliation adjustment.

  3. Post the journal.

  4. Go to the affected Bank workpaper.

  5. Click Sync with Partner and select Sync with Zato (Recommended).

  6. The Balance per GL will update to reflect the posted journal and the variance should clear.

The journal posted in Zato can be pushed to Xero at any time using Sync with Partner on the Manual Journals dashboard. Do not rely on syncing Xero adjustments back into Zato. Post the journal in Zato to keep everything consistent.