Question

Very old reconciled deposit transaction in Y2021 shown up unreconciled. Help!!!

Forum|Forum|2 years ago
November 27, 2023
2 replies
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I have a new client using QB Desktop Pro. There's a very old reconciled deposit back in Y2021 shown up unreconciled on the books and the account beginning / ending balance does not match the bank statement. Previous accounting personnel either ignored it; or forced the account to balance by deleting and re-entering that particular deposit. It did not help to clear that transaction. Normally I will recommend to undo previous bank reconciliation up to the month that deposit happened and then do reconciliation again to bring the transaction cleared and the account up to date. But that transaction is in Y2021, that's a lot to undo the previous bank reconciliations. Is there's any suggestion to clear that deposit? Thank you!

QuickBooks Desktop

S

SashaMC

Good afternoon GeorgieW,

Welcome to the QuickBooks Community! I will be delighted to share some information that I believe would assist. Below is a link where one of our Community Members (marked as Best Answer) shared two ways this could be done, but more importantly, they recommended creating a backup before doing any work.

How can I correct a prior reconciliation without redoing it?

Please let me know if you have additional questions! I will be around to help further.

Rainflurry

@GeorgieW

"There's a very old reconciled deposit back in Y2021 shown up unreconciled.."

How can a reconciled deposit show up as unreconciled? That doesn't make sense. Are you saying when you go to reconcile the bank account, there is a deposit from 2021 showing as unreconciled? And, when you clear it, you're still unable to reconcile? If that's the case, you will need to reverse the 2021 deposit by creating a check in 2023 and assigning the same account to the check that was assigned to the 2021 deposit. Then, the next time you reconcile, clear the check against the deposit. If you're unable to reconcile after that, then you will need to make an entry to reconcile the difference.

G

GeorgieWAuthor

Hi Rainflurry,

That doesn't make sense to me neither. I just signed up this new client. My task is to train the new accounting manager to file DTC compliance returns and reports. But the trainee brought up this issue to my attention.

Yes, during the transition period, the previous person showed the new person that there's a Y2021 deposit popping up as unreconciled in the bank reconciliation. I am not sure how long has this unreconciled transaction shown up. It may be existed even before the previous accounting person on board. To my understanding, the previous person deleted and re-entered the same transaction three times; (This shouldn't be the correct method to clear the old unreconciled transaction.) and it still shows up as uncleared in the bank reconciliation. Furthermore, the ending balance on the book doesn't match the beginning balance on the bank statement with the exact uncleared amount.

Per your suggestion, I should create a check in Y2023 recording to GL# 12150 (if this is the deposit bank account) to clear the Y2021 deposit. If the old deposit still be unable to reconcile, then I need to make an adjusting entry to reconcile the difference. But how should the adjusting entry be made?

Credit: GL # 12150

Debit: XXXX? This is what I am not sure.

It will be highly appreciated if you or anyone and give some insight. Thank you!

GeorgieW

Rainflurry

@GeorgieW

"Furthermore, the ending balance on the book doesn't match the beginning balance on the bank statement with the exact uncleared amount."

Are you saying that, after you clear the 2021 deposit, the reconciliation is off by the exact amount of the deposit? If so, then write a 2023 check for the same amount as the deposit and assign the same account to the check that was assigned to the 2021 deposit. That reverses the 2021 entry in the current period and you should then be able to reconcile with no further entry needed.

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