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Create a new bank account to resolve reconciliation discrepancies

In some situations it may be impossible to reconcile an account without creating a large adjustment for the discrepancy. This could be the case if reconciled transactions have been deleted in prior periods, if reconciliation's have been performed using amounts other than the ending balances from bank statements, or if there are just too many errors to track down otherwise.

Before proceeding with the steps below, try to troubleshoot reconciliation discrepancies using one or more of the following KBs:

How to fix it

What to expect:

At the end of these steps you will have a new Bank account in your Chart of Accounts with an accurate Reconciled balance.

Important: Before following the steps below, back up your company file.

Edit the name of the original bank account.

  1. Press Ctrl + A on your keyboard to bring up the Chart of Accounts.
  2. Right-click the original bank account and select Edit Account.
  3. Add the word OLD to the Bank account name.
  4. Click Save & Close.
     
  5. Create a new bank account.
    1. Press Ctrl + N when you have the Chart of Accounts open.
    2. Select Bank in the Choose Account Type window; click Continue.
    3. Enter the name of the original Bank account in the Account Name field.
    4. Entering other details about the account are optional, DO NOT enter an Opening Balance.
    5. Click Save & Close.
       
  6. Transfer funds from original bank account to the new bank account.
    1. Go to the Banking menu, select Transfer Funds.
    2. Enter the date from your last bank statement in the Date field.
    3. Select the OLD Bank account  in the Transfer Funds From field.
    4. Select the NEW Bank account in the Transfer Funds To field.
    5. Enter the Ending Balance amount from your last bank statement in the Transfer Amount field.
    6. Click Save & Close.
       
  7. Reconcile the new bank account.
    1. Go to the Banking menu, select Reconcile.
    2. Select the new Bank account from the drop down.
    3. Enter the statement ending date from your last bank statement.
    4. Enter the ending balance from your last bank statement.
    5. Enter any Service Charges or Interest Earned if applicable.
    6. Click Continue.
    7. Check off the transaction created in Step 3, verify that the Difference in the bottom right shows 0.00.
    8. Click Reconcile Now and print reconciliation reports.
       
  8. Move outstanding transactions (transactions in transit) from the old Bank account to the new Bank account.
    1. Open the Register for the old bank account.
    2. Open each transaction that is dated after the last statement date and other transactions that have not cleared.
    3. Edit the Bank account on these transactions and change to the new Bank account.
    4. Click Record in the Register for the old bank account and close it.
       

You will now have a Bank account in QuickBooks Desktop with an accurate reconciled balance for future reconciliation. The new account will also have the outstanding transactions that have not yet been reconciled, and the historical detail will be in the register of the old Bank account. If there is a remaining balance in the old Bank account discuss with your Accountant how this balance can be adjusted to zero.

 

KB ID# SLN43817
12/10/2016 8:04:53 PM
PPRDQSSWS404 9138 Pro 2017 1a08fe