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Bank reconciliation issue- Check written date vs. date cleared the bank

Hello,  We initiated a check on our bank's website at the end of 2017.  Since the bank always has a time lag, the check wasn't written by the bank until 2018.  In QB, the bill was recorded as paid on the date the request was put into the bank.  Since we use Bank Feed Center to pull in all of our bank detail, we won't be able to match the paid invoice per QB to the transaction that is coming in from the bank (since it was 2018).  We normally don't worry about the check initiation date; but in this case, the company wanted to show it as paid so they could estimate taxes better.  When I try to do the December bank reconciliation, the invoice is showed as paid on QB, but of course it's not in the bank statement.  So therefore I have a reconciliation discrepancy.  What should I do?  (One other thing to note:  We do cash rather than accrual based accounting.  We are a small business.)  Thank you in advance for your assistance.  

13 Comments
BRC
Established Community Backer ***

The date you initiated the payment is really all that mat...

The date you initiated the payment is really all that matters.  The download should work fine to match a check dated a few days after the one in QB.  That is the normal way banking works (checks written clear later.)

There's no issue with reconciliation.  Check off the items that cleared the bank, on the statement, and leave the other's unchecked.  That's all there is to the reconciliation.  The month or year does not matter.

Not applicable

Thank you for helping me.  The payment is now showing up...

Thank you for helping me.  The payment is now showing up on Bank Feeds Center.  Since the bill was already marked as paid when the check was written, I can no longer "Select Bills to Be Marked as Paid."  What should I do in the Bank Feeds Center?
BRC
Established Community Backer ***

Sorry, I don't know what you're describing.  I think the...

Sorry, I don't know what you're describing.  I think the just like any other payment downloaded from the bank, select the matching transaction in QB.  How is this payment different than any other?
Not applicable

Normally we wait until transactions show up in Bank Feed...

Normally we wait until transactions show up in Bank Feed Center and then I "Select Bills to be Marked as Paid", select the vendor, see the outstanding bill, check mark it, and all is good - payment equals invoice balance and amount is no longer in accounts payable.  In this case, the bill was marked as paid (on a different date) on the bill pay screen prior to it showing up on the Bank Feed Center since the check didn't come over from the bank until January.  I'm not sure what to select on the Bank Feed Center - If I do "Select Bills to Be Marked as Paid", there won't be a bill to match it to because it's already marked as paid.  Do I select "Add More Details"? If so, what do I enter?
Not applicable

If I select "Match to Existing Details", what does that d...

If I select "Match to Existing Details", what does that do?  Since I've never done it that way before, what will that do to my check register/P&L?
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BRC
Established Community Backer ***

I don't know the steps when using the new bank feeds view...

I don't know the steps when using the new bank feeds view as I don't use it (hate it.)  A normal way bank feeds are used is that you first record data in QB, such as checks, and deposits, and then later download from the bank its records to match against your existing data.  See QB help for how to match a downloaded transaction with an existing one, if that's not clear.
Not applicable

Ok, thank you.  I've been at this for less than a year bu...

Ok, thank you.  I've been at this for less than a year but was taught to record everything via the bank feed rather than recording it first in QB.  The timing differences never made a difference until year end.  I will definitely look in to recording it in QB first.
Established Community Backer ***

"I can no longer "Select Bills to Be Marked as Paid."" It...

"I can no longer "Select Bills to Be Marked as Paid.""

It should have shown as an Auto-Match, if the banking download matches to the Bill Payment Check that is already in the Bank account in QB.

"We normally don't worry about the check initiation date;"

But you should Always pay attention. You write a check in Nov, and it doesn't get presented to the bank until Jan = the Wrong Tax Year for you. Your check date is the date you Spent it. The Bank Date is the date they Processed it, as part of Verification on the way to Reconciliation to confirm it Cleared for the same amount that you thought you spent.




Not applicable

Hi-Thank you for your response.  It did show as auto-matc...

Hi-Thank you for your response.  It did show as auto-matched.  I thought I would have to say that it didn't match because the date was different.  That's why I had asked the previous questions.  So by doing this,
So when I do the bank reconciliation, will I leave it unchecked?    ---And this may be a stupid question-by doing it this way (all of the recommendations/comments above), does this have any affect on my P&L?  Does it duplicate expenses?
BRC
Established Community Backer ***

RE: I thought I would have to say that it didn't match be...

RE: I thought I would have to say that it didn't match because the date was different.

The date something clears your bank is almost always different than the date you write the check.  So, this has to work.
Not applicable

Thank you!  Common sense definitely applies here.  It's g...

Thank you!  Common sense definitely applies here.  It's getting bogged down in the mechanics of QB that can be troublesome ;-)  And the undoing of errors is not fun.  If you have a good resource/online training/book, please let me know.
Established Community Backer ***

"will I leave it unchecked?" You start the reconciliation...

"will I leave it unchecked?"

You start the reconciliation. In the second screen, at the bottom, you click on Matched. You provide the date, for the statement cutoff, so that it does not Checkmark anything that has already been Verified (lightning bolt) but is not on this statement.

You checkmark anything that Is on that statement and has cleared the bank, whether or not you also use Banking Downloads as a helper function.

"If you have a good resource/online training/book, please let me know."

There are video tutorials here, and two are for Banking:

Desktop PC program video tutorials

And this:
http://fi.intuit.com/support/gsg/dl/QBW17_GSG.pdf

Frequent Contributor *

Re: "will I leave it unchecked?" You start the reconciliation...

I suspect the responders don't fully understand the issue here.  I have just encountered a similar one, so will try to articulate it.  Client uses payroll service, so transactions import to QBO automatically.  The tax payment was dated 5.01.19 by the payroll service, but the bank showed it as cleared on 4.30.19.  When reconciling April, the transaction is not available within the month parameters, so cannot be checked off.  It ends up being a discrepancy for the month of April due to the anomalous timestamps on the transaction.  Because the transaction originated with the PR provider, it cannot be modified; thus the account cannot be fully reconciled for the period.  Obviously, it will resolve the following month, but it's problematic in the current period.  I have never seen this happen before, but users should be aware that it can happen.

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