I have had to change payments that were processed as a deposit instead of a receive payment and now this has put the bank reconciliation out. How can I fix this.

Hi Nicky, Reconciliation discrepancies happen when a previously cleared transaction is modified. To resolve this issue, you will need to mark the updated payments as reconciled manually.

Were the original deposits matched to your bank feed, or did you enter them manually? Additionally, are there any unprocessed transactions in your bank feed at this time?

You'll need to ensure the money follows accordingly from the Invoice to Undeposited Funds, and into your Bank Account. This clears your Accounts Receivable while making the transaction visible for your reconciliation.

First, make sure that the customer’s invoice shows as paid.

1. Navigate to the Receive Payment.
2. Choose the specific customer and check the box for the Invoice they paid.
3. In the Deposit To, select Undeposited Funds.

Next, move the payment to your bank account. Go to Bank Deposit, select your account and the date, then check the box next to the payment you just created. Click Save.

Then, match the transaction by navigating to your Bank Transaction and find the original deposit. You should now see a green Match button. Click it to link the bank's record with your entry and update your balance.

Now, let's manually match the updated payments as reconciled:

1. Go to Accounting, select Chart of Accounts, and click Account History for the bank account.
2. Locate the modified Receive Payment entries.
3. In the status column (the narrow column between the payment and deposit amounts), click the blank space or the "C" until it turns into an "R" (Reconciled).
4. Save the change. This tells QuickBooks the transaction is officially verified, resolving the discrepancy.
   
   
   

Please verify that all amounts and dates match. If there’s a discrepancy, we recommend consulting your accountant to ensure accuracy.

If you have any further questions or require additional assistance, please add a comment below. We are here to help.