I have miscategorized an asset (and its amount) on an invoice that has already been paid and the transaction has been reconciled on our bank account, but will it impact the books?

jburski · ‎December 21, 2022

I have miscategorized an asset (and its amount) on an invoice that has already been paid and the transaction has been reconciled on our bank account, but will it impact the books? When I originally put in the invoice it had various line items and I need to change two of the line items: an asset account and an expense account. Originally, I mistakenly categorized the asset as Furniture (and it needs to be changed to Computer). The price was also incorrect. Can I change the asset category and amount (- $150.00), and also change a line item for an expense category and amount (+$150.00) without it having an affect on our books? The total amount of all line items would still remain the same as the original amount of the invoice, and we only have one bank account.

Thanks for any help you can give me!

Charies_M · ‎December 21, 2022

Glad you made your way here, jburski.

You can only edit a reconciled transaction as long as the account and the amount stays the same. In your case, you'll want to fix this by creating a Journal Entries. This is the safest way to prevent your books from messing up whenever you make adjustments or changes.

With regards to choosing what accounts to debit or credit, I suggest consulting your accountant. They can help determine the correct posting accounts to use while creating the Journal Entry (JE).

In case you want to review the entries made, you can pull up or print a report for Journal Entries.

To do that:

Go to the Search icon then choose Advanced Search.
Filter your search to Journal Entries. Add additional filters such as Reference no., as necessary.
Select Search, then choose the desired Journal Entry.
Select More, then choose Transaction journal.
To print, select the Print icon in the upper right of the report.

Should you need any additional assistance while managing your reconciled transactions, you can leave a comment below. I'll be sure to get back to you.

View solution in original post

Charies_M · ‎December 21, 2022

Glad you made your way here, jburski.

You can only edit a reconciled transaction as long as the account and the amount stays the same. In your case, you'll want to fix this by creating a Journal Entries. This is the safest way to prevent your books from messing up whenever you make adjustments or changes.

With regards to choosing what accounts to debit or credit, I suggest consulting your accountant. They can help determine the correct posting accounts to use while creating the Journal Entry (JE).

In case you want to review the entries made, you can pull up or print a report for Journal Entries.

To do that:

Go to the Search icon then choose Advanced Search.
Filter your search to Journal Entries. Add additional filters such as Reference no., as necessary.
Select Search, then choose the desired Journal Entry.
Select More, then choose Transaction journal.
To print, select the Print icon in the upper right of the report.

Should you need any additional assistance while managing your reconciled transactions, you can leave a comment below. I'll be sure to get back to you.

jburski · ‎December 23, 2022

Thank you for your quick response - it was really appreciated! As per your suggestion, I will get in contact with our CPA's to see which accounts to debit/credit in making a journal entry to correct my mistake. Thanks again, and HAPPY HOLIDAYS to you!

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I have miscategorized an asset (and its amount) on an invoice that has already been paid and the transaction has been reconciled on our bank account, but will it impact the books?