Bank reconciliation

Leona23 · ‎July 18, 2020

Hi all,

I am new in QB system. I've keyed in all the opening balance entries in the journal entry.

Questions:

1) When I want to do reconciliation, the beginning balance is zero. Tried several methods to fix the problem but still zero. Do I need to delete the journal entry and redo?

2) I've created another bank account, enter the opening balance (statement ending balance & date), looks fine but why do I see the bank opening balance amount under deposit (reconcile page)? Did I key correctly?

Credit - Share Capital / Prepayment / Accruals / Sales / Other income

Debit - Retained Earnings

Debit - Bank

Debit - Cash (Petty cash) / Expenses

Thank you in advance.

AlexV · ‎July 18, 2020

You're almost there, Leona23!

You don't need to delete it. After you create a journal entry for the opening balance, we can do a mini-reconciliation to mark it as reconciled. It'll fix your opening balance.

From the Banking menu, select Reconcile.
Select the account from the Account drop-down, then enter the statement date and ending balance that matches your Journal Entry.
Click Continue. Select the corresponding Journal Entry in the Deposits and Other Credits section.
Tap Reconcile Now.

I've added some of the articles you can check for more details:

Please post again if you have more questions. Have a great day!

View solution in original post

MarsStephanieL · ‎July 19, 2020

Hi there, @Leona23.

I'd be glad to help you clear the bounced check so that you can proceed with reconciling your account.

First, you'll have to record Non-Sufficient Fund (NSF) or bounced check. You can perform it either by using Record Bounced Feature or by manual process. Then, you can proceed with the reconciliation process. I recommend asking for advice and guidance from your accountant to ensure accuracy.

Here's how to record it manually:

Create an item and income account for tracking bounced checks and their associates' charges.
Create a journal entry to reverse the original payment. Note: Enter only the 2K bounced check amount in this step. Debit your account receivables with the NSF amount and credit the bank that received the original deposit.
Switch the payment for the invoice to the reversing journal entry.
Resend open invoice. (Optional)

I also added this article for more information about this process: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

Furthermore, here's an article to help you reconcile: Reconcile an account in QuickBooks Desktop. This contains other sub-topics about fixing balance issues and what report you can pull up to review the reconciled transactions.

You can tag my name anytime if you need further assistance or you have other questions. I'd love to answer them for you. Have a wonderful day ahead.

View solution in original post

AlexV · ‎July 18, 2020

You're almost there, Leona23!

You don't need to delete it. After you create a journal entry for the opening balance, we can do a mini-reconciliation to mark it as reconciled. It'll fix your opening balance.

From the Banking menu, select Reconcile.
Select the account from the Account drop-down, then enter the statement date and ending balance that matches your Journal Entry.
Click Continue. Select the corresponding Journal Entry in the Deposits and Other Credits section.
Tap Reconcile Now.

I've added some of the articles you can check for more details:

Please post again if you have more questions. Have a great day!

Leona23 · ‎July 19, 2020

Thanks for your solution Alex!

I'm almost there~

My current opening balance ($10K) and ending bank statement ($8K) is not tally.

When I submit the accounts to auditor, I've captured the invoice cheque ($2K) as cleared but actual fact it was bounced. The auditor captured it as cleared.

I tried keying below entries, cannot tally when reconcile:

1. Debit - Trade Debtor - $2K (the bounced chq)

2. Credit - Bank - $10K

3. Debit - Bank - $8K

Actual bank statement = $8K

Thanks again.

MarsStephanieL · ‎July 19, 2020

Hi there, @Leona23.

I'd be glad to help you clear the bounced check so that you can proceed with reconciling your account.

First, you'll have to record Non-Sufficient Fund (NSF) or bounced check. You can perform it either by using Record Bounced Feature or by manual process. Then, you can proceed with the reconciliation process. I recommend asking for advice and guidance from your accountant to ensure accuracy.

Here's how to record it manually:

Create an item and income account for tracking bounced checks and their associates' charges.
Create a journal entry to reverse the original payment. Note: Enter only the 2K bounced check amount in this step. Debit your account receivables with the NSF amount and credit the bank that received the original deposit.
Switch the payment for the invoice to the reversing journal entry.
Resend open invoice. (Optional)

I also added this article for more information about this process: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

Furthermore, here's an article to help you reconcile: Reconcile an account in QuickBooks Desktop. This contains other sub-topics about fixing balance issues and what report you can pull up to review the reconciled transactions.

You can tag my name anytime if you need further assistance or you have other questions. I'd love to answer them for you. Have a wonderful day ahead.

Leona23 · ‎July 23, 2020

Hi @MarsStephanieL

Thank you for your solution. Managed to clear it :)

I need help on how to enter payroll expenses/liabilities correctly so that the figures match the bank statement deduction figures/dates?

Below is how I enter in Journal Entry form:

Journal Entry1
Debit - Payroll Expenses:Salaries & Wages: $2600.00
Credit - Payroll Liabilities:CPF - Employee Tax (20%): $520.00
Credit - Payroll Liabilities:CDAC: $1.00
Credit - Bank: $2079.00

Journal Entry2
Debit - Payroll Expenses:CPF - Employer Tax (17%): $442.00
Debit - Payroll Expenses:SDL: $6.50
Credit - Bank: $448.50

For bank reconciliation, there will be two deduction dates : 1) actual salary deduction 2) tax deduction:
1) actual salary deduction date, 30 June 2020

Per bank statement: Salary - CPF (20%) - CDAC = $2079.00

2) Payroll liabilities deductions for June 2020 happened the following month: 14 July 2020
Per bank statement: CPF (20%) + CDAC + CPF (17%) + SDL = $969.50

I don't think it's right to capture CPF (20%) and CDAC in Journal Entry2, it will be double entry. Help please!

Thank you in advance!

Lynette7 · ‎April 27, 2021

I need help in resetting a starting number

Ryan_M · ‎April 27, 2021

Hi @Lynette7,

I believe you're referring to the opening balance of your bank account in QuickBooks Desktop (QBDT).

For that, you'll need to open the Chart of Accounts first. From there, you can edit the opening balance of the account in question.

Here's how:

Click the Lists menu.
Select Chart of Accounts.
From the list, look for the bank account in question. Right-click it, then choose Edit account.
Under the General tab, press the Change Opening Balance button.
Type in the correct amount for the opening balance then hit Save & Close.

In case you encounter other opening balance issues for your bank accounts, keep this article for reference: Fix beginning balance issues in QuickBooks Desktop.

Feel free to let me know in the comments below if you have other questions opening balances in QBDT. I'll be sure to help you out.

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