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Intuit

Fix Reconciliation Discrepancies

Reconciliation in QuickBooks is done to make sure that your account accurately reflects your business transactions. If you have previously reconciled an account but it shows a different balance in the next reconciliation, your account has reconciliation discrepancies.

Reconciliation discrepancies may be caused by one of the following reasons:

  • Previously reconciled transactions have been modified, deleted, or added
  • Reconciliation adjustments (Journal entries, etc.)

Depending on the cause, follow these steps to fix reconciliation discrepancies:

Modified, deleted, or added transactions

There are several reports available in QuickBooks that will help you identify discrepancies.

Reconciliation Discrepancy Report: This report shows transactions sorted by statement date that were changed since the last reconciliation.

  1. From the Reports menu, select Banking > Reconciliation Discrepancy.
  2. Choose the appropriate account, then select OK.
  3. Review the report to identify any discrepancies.

Missing Checks Report: This report helps you verify missing transactions.

  1. From the Reports menu, select Banking > Missing Checks.
  2. Choose the appropriate account, then select OK.
  3. Review the report for transactions that don't match your bank statement.

Transaction Detail Report: This report helps you verify transactions that were changed or modified.

  1. From the Reports menu, select Custom Reports > Transaction Detail.
  2. Under the Display tab, choose the following:
    • Date From = the earliest QuickBooks date (or leave blank)
    • Date To = The date of last reconciled statement
  3. Under the Filters tab, choose the following:
    • Account = the account being reconciled
    • Entered/Last Modified
      Date From = Date of the last reconcile
      Date To = Today
  4. Select OK to run the report.

Important:

  • Once a discrepancy is identified, you need to make the necessary corrections. If you need assistance on how to make these corrections, please consult your accountant.
  • If you have new transactions to add to the reconciliation period or if you have modified previously reconciled transactions, you may need to do a mini-reconciliation.

Reconciliation adjustment

A forced previous reconciliation which resulted to a reconciliation adjustment may also cause discrepancy. To fix this issue, you need to review the Reconciliation Discrepancy account for inappropriate adjustments.

  1. Go to the Lists menu, select Chart of Accounts.
  2. Double-click the Reconciliation Discrepancies account.
  3. From the Dates drop-down, select the appropriate filter.
  • If you're unable to identify the transaction/s in the register that need to be corrected, you will need to undo the previous reconciliation until the opening balance is correct.
  • Once the opening balance is correct, you can proceed with reconciling the current month making sure the opening balance is correct for each month. If you encounter an incorrect beginning balance for a specific month, you can just correct it.
  • If a transaction from years ago was changed or deleted recently, you may need to undo bank reconciliations for the past however many years to get to where the opening balance is correct.