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Community Explorer **

Deleting Unreconciled Transactions

Is there any harm in deleting or editing manually entered transactions that have NOT been CLEARED or RECONCILED?  They are from last year & even though I already reconciled for those time periods, these individual transactions were not included as part of the reconciliation. They were data entry errors on my part. 

 

Example #1:  I manually entered an expense/check for the wrong amount.  I later accepted it as a new transaction from my bank feed (since there was no match) so the manually entered transaction with the incorrect amount remains outstanding.

 

Example #2:  I accidentally entered a cash expense against my checking account. Is it ok to modify the transaction & change the account to CASH?  Again, this transaction is several months old.

 

Thanks for your help!

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Best answer 04-09-2019

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QuickBooks Team

Re: Deleting Unreconciled Transactions

Thanks for posting in the Community, @LisaMarie2. I'm here to provide clarification on deleting transactions. 

 

It's often suggested to void a transaction, instead of deleting it, since this will keep a record of the transaction, but have a zero amount. This is in contrast to deleting it which will completely remove the transaction. 

 

Since these transactions aren't reconciled, voiding/deleting them won't change the reconciled balance. So you won't have to worry about that impacting your reconciles or causing any harm.

 

Naturally, removing transactions will impact financial reporting, such as deleting/voiding an expense will reduce the spent amount for the account. However, ensuring that the correct transactions are included in a company file will help to ensure accurate books and reporting. 

 

I recommend the following article for further insight into this and the steps for deleting/voiding a transaction: How to void or delete an invoice or other transactions.

 

This resource should get you started in the right direction.

 

If you have questions or need me, I'm just a few clicks away. Hope you have a great week.

8 Comments
QuickBooks Team

Re: Deleting Unreconciled Transactions

Thanks for posting in the Community, @LisaMarie2. I'm here to provide clarification on deleting transactions. 

 

It's often suggested to void a transaction, instead of deleting it, since this will keep a record of the transaction, but have a zero amount. This is in contrast to deleting it which will completely remove the transaction. 

 

Since these transactions aren't reconciled, voiding/deleting them won't change the reconciled balance. So you won't have to worry about that impacting your reconciles or causing any harm.

 

Naturally, removing transactions will impact financial reporting, such as deleting/voiding an expense will reduce the spent amount for the account. However, ensuring that the correct transactions are included in a company file will help to ensure accurate books and reporting. 

 

I recommend the following article for further insight into this and the steps for deleting/voiding a transaction: How to void or delete an invoice or other transactions.

 

This resource should get you started in the right direction.

 

If you have questions or need me, I'm just a few clicks away. Hope you have a great week.

Established Community Backer ***

Re: Deleting Unreconciled Transactions

You can change the cash transaction from the checking to the cash account, and you can delete or correct and match incorrectly entered manual transactions. However, these transactions are already in the account registers that you noted having reconciled months ago.

 

Note that you will need to re-reconcile the accounts for the periods in which you are deleting transactions, using the bank statement balances. If you don't do this the beginning account balance can get messed up the next time you reconcile.

 

Also note that if your taxes were already filed for last year, you need to be careful about changing the year-end balances for your accounts, as they should match your tax return.

Community Explorer **

Re: Deleting Unreconciled Transactions

Do I have to re-reconcile even if the transactions I want to void are not marked with an "R" in the transaction journal?  Also, I'm working with my accountant to "clean up" my accounts to prepare to file my tax return so there's no concern there.

Moderator

Re: Deleting Unreconciled Transactions

I'm here to clear this out for you, @LisaMarie2.

 

As mentioned by DavidSC, there isn't a need for you to re-reconcile the transaction that is not marked as "R". You also have the choice to void, delete, or edit any transactions in QuickBooks Online.

 

It's great to know that you're already communicating with your accountant about your specific book. That should help you prepare with filing the tax returns.

 

If there's anything else you need or if you have additional questions about QBO, just drop a comment below. I'll be around to help you more. 

Established Community Backer ***

Re: Deleting Unreconciled Transactions

When you delete or void a transaction from an account register it does change the register balance for the period in which the transaction was originally posted to the register, regardless of whether the transaction has been reconciled or not.

 

It is a best practice to re-reconcile the account with the bank statement ending balance and date for the period in question. This will ensure that the beginning balance is correct for the next periods reconciliation. 

Community Explorer **

Re: Deleting Unreconciled Transactions

Thank you!  I have another question...

 

I manually added a deposit in QB back in September & "split" it between two accounts because some of it was from cash sales & some from a refund check from my insurance company.  These transactions are not marked as reconciled.  Based on your prior answer, I understand that I can void or delete them.  However, when I accepted the deposit that came in via the bank feed, I applied it entirely to CASH SALES.  This transaction HAS been reconciled.  How can I edit it without messing up my prior reconciliations?

QuickBooks Team

Re: Deleting Unreconciled Transactions

Thank you for the response, @LisaMarie2!

 

Allow me to share additional information and help you allocate the amounts of your reconciled transaction.

 

@SavvyAcccountant is correct. In addition, you can edit and unreconcile your affected transaction. This is to avoid incorrect opening balance for your next reconciliation.

 

Let me show you how:

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Find your Cash Sales account.
  4. Under the ACTION column, select View register.
  5. Locate and click to edit your transaction.
  6. Remove the R indication from the Check column.
  7. Click Save.

This way, you'll be able to edit and divide the correct amounts of your affected transaction to it's corresponding correct accounts.

 

In addition, here's an article you can read to learn more about how to unreconcile your accounts: How to Unreconcile a Transaction or Undo a Reconciliation?

 

However, I'd still recommend consulting your reconciliation to your accountant. If the above steps can be applied in your case. He/she can help you undo entire reconciliation and best advice about how you can handle your reconciliation.

 

Feel free to leave a comment below if you have any other questions about reconciliation. I'm always around to help.

Established Community Backer ***

Re: Deleting Unreconciled Transactions

First, when you have a deposit that is from multiple sources, always receive payments to undeposited funds first, this way you can add funds to the deposit under a different account, deduct fees when necessary, credit an expense for a refund check when appropriate, and make a deposit that matches the total deposit amount that comes into your bank feed.

 

For this transaction, it is best to correctly receive the customers cash payment to undeposited funds first, then go to the Plus (+) symbol, Other, and Bank Deposits and create a deposit to the correct bank account for the customers cash payment, then "add funds to the deposit" crediting the insurance expense account for the refund that was deposited with the cash payment. 

 

You will then need to match this bank deposit to the amount that came into the bank feed. Once this is done, you should re-reconcile the month the deposit occurred with the bank statement ending date and balance to ensure that your beginning balance is correct for the next period. It is always a best practice to click reconcile and re-enter the month-end date and balance again when you change a transaction in a reconciled period, whether it was reconciled before or not.