Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

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 may happen if:

  • Reconciled transactions have been deleted in prior periods
  • Reconciliation has been performed using amounts other than the ending balances from bank statements
  • There are just too many errors to track down otherwise.
 

If this is the case, it is easier to just create a new bank account that has an accurate reconciled balance for future reconciliation.

How to fix it

REMINDERS

  • The new account will also have the outstanding transactions that have not been reconciled.
  • The bank's historical detail will be in the old bank account's register.
  • If there is a remaining balance in the old bank account, consult your accountant about adjusting this balance to zero.
  • Always Back up the QuickBooks company file before following the steps below.

  1. Edit the name of the original bank account.
    1. From the Company menu, click Chart of Accounts.
    2. In the Chart of Accounts, right-click the original bank account and select Edit Account.
    3. Add the word OLD to the Bank account name.
    4. Click Save & Close.
  2. Create the new bank account.
    1. From the Company menu, click Chart of Accounts.
    2. In the Chart of Accounts, right click anywhere and select New.
    3. In the Choose Account Type window, select Bank and click Continue.
    4. In the Account Name field, enter the name of the original Bank account.
    5. Enter other account details EXCEPT the Opening Balance.
    6. Click Save & Close.
  3. Transfer funds from original bank account to the new bank account.
    1. From the Banking menu, select Transfer Funds.
    2. In the Date field, enter the date from your last bank statement.
    3. In the Transfer Funds From field, select the OLD Bank account.
    4. In the Transfer Funds To field, select the NEW Bank account.
    5. In the Transfer Amount field, enter the ending balance amount from your last bank statement.
    6. Click Save & Close.
  4. Reconcile the new bank account.
    1. From the Banking menu, select Reconcile.
    2. Click the Account drop-down and select the new Bank account.
    3. In the Begin Reconciliation window, enter your last bank statement ending date, ending balance and if applicable, any service charge or interest earned then click Continue.
    4. Check off the transaction created in Step 3 and make sure the Difference displayed at the bottom right is 0.00.
    5. Click Reconcile Now and print reconciliation reports.
  5. Move outstanding transactions (transactions in transit) from the old to the new bank account.
    1. Open the Register for the old bank account.
    2. Open each transaction 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.
KB ID# SLN43817
4/28/2017 8:36:15 PM
QYPPRDQBKSWS05 9138 Pro 2017 2c6de4