If your bank account was previously reconciled to an amount which was different to the closing balance on the relevant bank statement, this is known as a "forced" reconciliation.
You can check this by referring to:
- the Reconciliation Report from your last reconciliation (or restore a backup of your company file from around the time the reconciliation took place to generate this report), and
- the last bank statement you reconciled to.
The Expected Balance on Statement on the Reconciliation Report should match the closing balance on the bank statement.
If these values match - Jump to 4. Check if a previously reconciled transaction has been changed or deleted
If these values DON'T - See fix the forced reconciliation below.
Fixing a forced reconciliation
We strongly recommend you discuss the following options with your accountant prior to making any changes to your company file.
Option 1: or the out of balance reconciliations. Once they have been removed, re-reconcile the account using the correct statement closing balances.
Option 2: Record and reconcile an adjustment transaction for the out of balance amount.
- If the Calculated Statement Balance is greater than the bank statement closing balance, use Spend Money to record the adjustment.
- If the Calculated Statement Balance is less than the bank statement closing balanceSimilarly, use Receive Money to record the adjustment.
Here's an example forced reconciliation where the Calculated Statement Balance is less than the bank statement closing balance.
To correct this out of balance:
- From the Banking command centre, click Receive Money.
- Set the Deposit to Account field to your bank account.
- Set the Date and the other transaction details as needed.
- Set the Acct# field in the lower portion of the window to a ledger account you want to use for the adjustment. We recommend you check with your accountant which ledger account you should be using.
- So the adjustment isn't reported on the BAS, use the N-T Tax Code (if in New Zealand, use the N-T GST Code)
- Click Record and return to the Banking command centre.
- Click Reconcile Accounts.
- Set the Account field to your bank account.
- Enter the Bank Statement Date (we suggest you use the date of the current bank statement).
- Select the adjustment transaction as being reconciled.
- Check that the account balances then click Reconcile.
When you have fixed your out of balance, it's a good idea to lock the period so reconciled transactions can't be changed. Here's how:
- Go to the Setup menu and choose Preferences.
- Click the Security tab.
- Select the option Lock Period.
- Specify your reconciliation date.
- Click OK.