cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Fixing a reconciliation error

I have found an error from over a year ago.  An entry for a 401K match payment was erroneously entered and reconciled as the match amount plus the contribution payment made as a separate payment on the same day.  The contribution payment, a payroll liability, has not been cleared on the ledger but the account reconciled because the amount entered for the match was the sum of the match plus the payroll liability.

How can I fix this and keep the reconciliation correct?

 

Thank you in advance!

Solved
Best answer June 29, 2020

Best Answers
Highlighted
Level 2

Fixing a reconciliation error

While Intuit QuickBooks has the ability in the Accountant's version of the software to replace, void, and clear erroneously made sales tax payments, they have yet to do the same for payroll liabilities.  Don't ask me why.  It seems ludicrous, but they haven't.  We all need to send in feedback for this one.  So, the only way I know  to do this without undoing all of the bank reconciliations back to the prior year when the error took place is to record two additional transactions, one would be a reversing entry (deposit) for the exact amount of the one check, and the other would be a new transaction that you would enter through the pay payroll liabilities area.  Once both are done you can check the box in the checkbook register indicating they are cleared and then when you do your next bank reconciliation they will be cleared.  Be sure to date these two new transactions with the exact same date as the original entry.  And even though there were employer match and payroll liability were combined you can still record this payment in total, you just adjust the liability check once you see it on your screen to include the account for the match that is not showing as a payroll liability in the Expenses tab.  Hope this helps.

View solution in original post

1 Comment
Highlighted
Level 2

Fixing a reconciliation error

While Intuit QuickBooks has the ability in the Accountant's version of the software to replace, void, and clear erroneously made sales tax payments, they have yet to do the same for payroll liabilities.  Don't ask me why.  It seems ludicrous, but they haven't.  We all need to send in feedback for this one.  So, the only way I know  to do this without undoing all of the bank reconciliations back to the prior year when the error took place is to record two additional transactions, one would be a reversing entry (deposit) for the exact amount of the one check, and the other would be a new transaction that you would enter through the pay payroll liabilities area.  Once both are done you can check the box in the checkbook register indicating they are cleared and then when you do your next bank reconciliation they will be cleared.  Be sure to date these two new transactions with the exact same date as the original entry.  And even though there were employer match and payroll liability were combined you can still record this payment in total, you just adjust the liability check once you see it on your screen to include the account for the match that is not showing as a payroll liability in the Expenses tab.  Hope this helps.

View solution in original post

Need to get in touch?

Contact us