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How to reconcile a corrected transaction?

Payroll checks and a payroll tax payment was set to be withdrawn from an wrong old bank account (I use QB payroll service). It cleared the correct current account and I've edited payroll settings to withdraw from correct account for the future.

Both payroll and tax payments can't be edited, and I didn't want to delete and re-run the payroll, so I created transfers from new account to old account for each check.

When reconciling bank account, the transfers and payroll checks written show up as payments/deposits. If I select all of the deposits and payments, they balance out to 0, which is what I need to reconcile. But the ending payment/deposit total for the account doesn't match the statement. Is this method a correct way to fix payments that were posted to the incorrect account and to reconcile those incorrect payments? I understand that journal entry could be made, but you can't reconcile it...

Alternatively, should I leave the incorrect payroll checks and transfers to correct them uncleared on reconciliation, as long as the difference shows 0? I use cash accounting method, would that mess up my payroll expenses?

Thanks!

Solved
Best answer 10-15-2018

Accepted Solutions
Super Contributor *

I had this happen once when full service payroll selected...

I had this happen once when full service payroll selected the parent and the client used a sub acct. for payroll.  Same issue except we could not delete (I would have done that in a heartbeat) since the client did not find the issue until the payroll period had closed.

If you still have that ability, delete and re-enter.

If not, we did the transfer method.  Transferred for each paycheck and transfer for the payroll tax payment (which she also had in the wrong acct.)  Then we reconciled the wrong acct. to clear the mess and then reconciled the correct one.  

If you are replacing each transaction, it should work for you.

2 Comments
Super Contributor *

I had this happen once when full service payroll selected...

I had this happen once when full service payroll selected the parent and the client used a sub acct. for payroll.  Same issue except we could not delete (I would have done that in a heartbeat) since the client did not find the issue until the payroll period had closed.

If you still have that ability, delete and re-enter.

If not, we did the transfer method.  Transferred for each paycheck and transfer for the payroll tax payment (which she also had in the wrong acct.)  Then we reconciled the wrong acct. to clear the mess and then reconciled the correct one.  

If you are replacing each transaction, it should work for you.

Super Contributor *

I had this happen once when full service payroll selected...

I had this happen once when full service payroll selected the parent and the client used a sub acct. for payroll.  Same issue except we could not delete (I would have done that in a heartbeat) since the client did not find the issue until the payroll period had closed.

If you still have that ability, delete and re-enter.

If not, we did the transfer method.  Transferred for each paycheck and transfer for the payroll tax payment (which she also had in the wrong acct.)  Then we reconciled the wrong acct. to clear the mess and then reconciled the correct one.  

If you are replacing each transaction, it should work for you.