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By Bonnie Biafore | Sunday, June 22, 2014

Correcting Reconciled Transactions in QuickBooks

Say you discover a transaction that was recorded using the wrong QuickBooks feature. For example, you wrote a check in the QuickBooks’ Write Checks window to pay a bill and sent the payment off to the vendor. Now, it’s a month later and you see the vendor’s bill in QuickBooks: its status is unpaid and overdue. (Because you used the Write Checks window to write a check to the vendor, QuickBooks thinks the bill hasn’t been paid.) Even worse, you’ve already reconciled the check you wrote during your last bank account reconciliation. Fixing this error is as easy as 1-2-3:

  1. Delete the incorrectly recorded transaction, in this example, the check you wrote in the Write Checks window.
  2. Record a new transaction with the correct QuickBooks feature, in this case, paying the bill in the Pay Bills dialog box.
  3. Re-reconcile your bank account to account for the deleted and added transactions.

Here are the steps to get your records back on track:

  1. Let’s get that incorrect transaction out of the way first.

voidcheck

  1. In the Chart of Accounts window, double-click your checking account to open it.
  2. Right-click the check that you want to delete, and then choose Void Check on the shortcut menu. In this example, it’s check 108 to Sanford Glass & Jars.
  3. In the memo cell, QuickBooks adds the text “VOID:”. Click to the left of this text and then type a memo, such as “Voiding check to pay the bill using Pay Bills”.
  4. Click the Record button to save the voided check. You’ll see a message warning you that it isn’t a good idea. Go ahead and click Yes anyway. You’ll see a second warning. Click Yes in that message box, too. And you might even see a third message suggesting another solution. If that’s the case, click the “No, just void the check” button and QuickBooks will finally record the voided check.
  1. Now, it’s time to record a new transaction using the correct QuickBooks feature, in this case, Pay Bills.

paybill

  1. On the Home page, click the Pay Bills icon.
  2. In the Pay Bills window, turn on the checkbox for the bill that QuickBooks thinks hasn’t been paid, in this example, the bill from Sanford Glass & Jars due on June 18, 2014.
  3. In the Date box at the bottom left, choose the date that you wrote the original check, in this example, 6/20/2014.
  4. In the Method box, choose Check, select the Assign check number option, and then click Pay Selected Bills.
  5. In the Assign Check Numbers dialog box, select the “Let me assign the check numbers below” option. In the Check No. cell for the check to Sanford Glass & Jars, type the number of the check you originally write, in this example, 108.assigncheckno
  6. Click OK.
  7. You’ll see a message about another check with the same number (the one you voided). Click Keep Number to dismiss the message. Then, in the Payment Summary dialog box, click Done.

You’re almost done! Because you voided the original reconciled check, your beginning reconciliation balance won’t agree with the one on your bank statement. And the newly-created check isn’t reconciled either.

  1. Re-reconcile your checking account to reconcile the voided check and the new payment.

This reconciliation is like a mini-reconciliation. You only reconcile the transactions that have changed.

beginreconcile

  1. On the Home page, click the Reconcile icon.
  2. In the Begin Reconciliation window’s Account drop-down list, choose the bank account you want to mini-reconcile. In this example, it’s the Checking account and it’s already selected.
  3. In the Statement Date box, change the date to the date on the bank statement that contains the transaction you corrected. In this case, the corrected check is on the bank statement ending, 6/30/2014, so you change the date from 7/31/2014 to 6/30/2014.
  4. In the Ending Balance box, fill in the ending balance from that same bank statement ($7.984.83 from the June statement, in this example), and then click Continue.
  5. The Reconcile window opens.
  6. In the Reconcile window, find the corrected transaction in the Checks and Payments list and turn on its checkmark cell.
  7. When you do that, the Difference value changes to 0.00.
  8. Click Reconcile Now to finish the reconciliation.

Now, QuickBooks recognizes that the bill has been paid. The bill payment is reconciled in your checking account. And the next time you reconcile the account, the beginning balance will match the beginning balance on your bank statement.

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