Last Updated on December 14, 2020 by Editorial Staff
QuickBooks functions for accounting, the automated reconciliation of accounts is one of the most useful features. Reconciliation Discrepancies in QuickBooks is an amazing tool that can save you a lot of time and allow you to manage your accounts correctly. Today in this article, we are going to know about the procedure of reconciliation discrepancies in QuickBooks, by which you can manage the finance of your business in the right way.
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The reconciliation characteristic lets in you to be sure that your account suggests your business transactions with close to perfect accuracy. but when you have reconciled your accounts after which if it still suggests a different balance throughout the reconciliation, then you definitely have to keep in mind it as reconciliation discrepancies.
It arises due to reconciliation adjustments like a previously reconciled transaction or Journal entries that might have been changed, deleted or added, etc. When these errors crop up, users might have to stop work. It’s important to remove the issues from the system as soon as possible.
The following can be the reason for the reconciliation discrepancy to your accounts.
- Modification, deletion or addition of the formerly added reconciliation
- Reconciliation changes (journal entries, and so forth.)
Procedure to Fix QuickBooks Reconciliation Discrepancy
This process is very simple, there is no need of any requirements, nor any technical procedure to complete the process. Here you just need to recheck some of the QuickBooks reports to fix this problem. let’s check which report will be change, and how it will be done.
Reconciliation Discrepancy Report
This report is used to check the transaction sorted on the idea of the statement date that became modified since the closing reconciliation
- Initially, click Reconciliation Discrepancy after choosing Banking from the report menu.
- Then select the right account and click on OK.
- visit the report in order to find a discrepancy.
Missing Check Reports
You can use this file for verifying missing transactions
- Firstly, click on missing checks after clicking on Banking from the report menu.
- Then select the right account and click on OK.
- After that, go to the file for transactions that don’t match your bank statement.
Transaction Detail Reports
This report may be used to verify transactions that were changed.
- Click on Transaction information after clicking on custom reports from the Reports menu.
- Then from the display tab, you will have to select from the following
- Date From – The earliest QuickBooks date
- Date To – Remaining reconciled date
- Then from the clear out tab, you will have to select from the following
- Account – the amount being reconciled
- Entered/last changed
- Date From- final reconciliation date
- Date To– these days
- Finally, click ok which will run the report.
Adjust the Reconciliation Discrepancies
A reconciliation discrepancy in QuickBooks also can arise due to a forced reconciliation which caused reconciliation adjustment. to be able to resolve this difficulty, you’ll evaluate the Reconciliation discrepancy account for finding beside the adjustments.
- Select the Chart of Accounts, from the list menu.
- Select and double-click on the Reconciliation Discrepancies account.
- Now, from the Dates drop-down, select the right filter.
- If you couldn’t find the transactions that want to be changed as a way to make it accurate, then you’ll want to undo the preceding reconciliation until the opening balance is correct.
- After the opening balance is corrected, you can cross on with the reconciliation of the current month even as making sure that the opening stability sheet is right for each month. if you discover an incorrect balance sheet for a month, then you will want to make corrections to it.
- If transactions from the past had been modified, then you will need to undo the reconciliation for the past.
Adjust the Entry of Reconciliation
To fix the problem, the user might have to review the QuickBooks Reconciliation Discrepancy account for inappropriate arrangement:
- Tick on the Chart of Accounts, and tick on the Company Menu.
- Select and double tick on the Reconciliation Discrepancy account and check the error.
The user can rectify the opening balance and continue with reconciling to the current month making sure the opening balance is rectified for each month. If the user requires support rectifying the opening balance, refer and check whether the Reconcile window creation balance is incorrect or zero.
The End Line
We hope, now you are able to repair reconciliation discrepancies in QuickBooks. We tried our best to put information in this article, hope you like it. Still, if there any issue to reconcile the discrepancies in QuickBooks then you can hire QuickBooks ProAdvisor for the best and appropriate solution.