You need to record the opening balance, Fin.
Based on what you've described, the discrepancy between the cleared transactions and the statement balance is due to a missing opening balance. Since there are already transactions recorded for this account, you'll need to use a journal entry to account for the opening balance.
Recording an opening balance via a journal entry can be tricky. I recommend consulting your accountant for guidance. Once done, here are the steps you can follow:
- Go to the Company menu and select Make General Journal Entries.
- In the Account column, select the dropdown menu on the first row to choose the relevant credit card account for your opening balance.
- Use the Description field to add a note explaining the purpose of the journal entry, such as 'Credit Card Opening Balance.' This helps identify it during reconciliation.
- In the second row of the Account column, select Opening Balance Equity from the dropdown menu.
- Refer to your bank statements to input the credit card's balance as of the date chosen for the opening balance.
- Enter the opening balance amount in the Credit column of the first row, and then input the same amount in the Debit column on the second row.
- Ensure your debits equal your credits before saving the journal entry. Click Save or Save & Close to complete the process.
After saving the journal entry, you'll have to reconcile it to prevent it from appearing in your reconciliation. Once completed, you can now continue reconciling the credit card account as usual.
If you have additional questions or need further guidance, feel free to reach out.
