Uncleared transactions

stopattheoffice · ‎August 08, 2020

Hi QuickBooks Community.

I am working for a Non-Profit Organization to redo their 2020 Bank Reconciliations. A former employee responsible for bank reconciliations would reconcile multiple months at a time. She would choose transactions so that the ending balance would match the statement ending balance but not all the transactions cleared were on the bank statement. The Beginning Balance and Closing Balance would match the bank statements, but the transactions cleared did not. She would match transactions to Online Banking that were not actually a match.

I have completed the bank reconciliations for 2020 but was not to undo any reconciliations in 2019 at the request of the NPO as year end reports have been provided to the Board and approved. There are multiple Uncleared cheques and payments and deposits and other credits from 2018 and 2019.

For cheques and payments that did not clear the bank, I have voided them. However, there are several cheques that cleared the bank account but are uncleared in QBO. How do I fix these?

For deposits and credits there are also 2018 and 2019 transactions uncleared.

The NPO started a new company in QuickBooks Online January 1, 2019, the QuickBooks Desktop data was not migrated to QBO. The 2018 transaction is a Journal Entry that was made to record opening balances, which included Undeposited funds as of December 31, 2018. I deposited this entry to the bank account and dated the deposit December 31, 2018. How do I clear this entry? I tried to void this transaction but it would void the entire Journal Entry and I don’t want to do that.

Also, there are multiple Receive Payment entries in 2019 that remain Uncleared. These payments have been applied to invoices. How do I clear these payments and leave the invoices paid?

Thanks very much for any assistance you can provided.

Ruth Skene Reedyk

Stop at the Office Inc.

LeithG · ‎August 14, 2020

Hi stopattheoffice:

When fixing other people's posting errors, I always find it helpful to identify what should have happened versus what actually (incorrectly) happened and then make the corresponding adjustment.

As an example from your list, you mention 'receive payments that remain uncleared, but which have caused invoices to be marked paid'. What should have happened is the payments should not have been received if the money was not in the bank, and the invoices shouldn't have been marked paid. Because this was done incorrectly, the easiest would be to post a liability from the customer for all the remaining outstanding payments as a 'correcting journal entry' showing either a single lump sum, or individual line items for each unpaid invoice. Then when those payments do eventually arrive, you can tie them to the individual invoice they should have originally paid. This will leave the existing transactions as they are, but accurately show the liability and bank position shy of those payments that never arrived.

stopattheoffice · ‎August 18, 2020

Hi Friday;

Thank you for your reply. Unfortunately that is not what happened. The payments were received, applied to the invoice and deposited into the bank account. When the bank reconciliation was done instead of clearing the payment receipts she entered the payments on a deposit slip to balance the bank reconciliation leaving the payment receipts uncleared.

What I ended up doing was to clear all uncleared transactions for 2018 and 2019 to Reconciliation Discrepancies.

Thanks;

Stop at the Office

AddieC · ‎August 18, 2020

Hi Ruth. Thanks for following up on this. I'm happy you were able to get things back on track. If you have any further questions, never hesitate to reach out to our tech support team.

Cheers.

LeithG · ‎August 18, 2020

Oh! That's weird!

How did you do that? Just in case we ever get stuck having to do that for someone?

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Uncleared transactions