Beginning balance confusion in nonprofit desktop

lauriem · ‎August 08, 2023

Hi

In June I generated a $200,000.00 check to open a new account at a different bank

When I wanted to reconcile it, including posting the accrued $118.36 in interest, there was no beginning balance and when I went to mark the cleared transactions the difference ended up being -$118.36.

So I went to the help menu and created a journal entry as directed to create a beginning balance, and now there are two entries for 200,000.00 (I deleted the interest)

Should I delete the je but then what?

I hope this makes sense!

Rainflurry · ‎August 09, 2023

@lauriem

The only entry needed is to write the check from the funding account and assign the new bank account to the check. That will reduce the bank account where the funds came from (Account A) by $200K and increase the new account (Account B) by $200K. The only entries you want on your reconciliation screens are:

Account A: $200K payment

Account B: $200K deposit

Your beginning balance in Account B should be $0. The ending balance is $200,118.36 (the initial deposit of $200K plus the $118.36 deposit of the interest earned). Clear them both and you should be all set.

View solution in original post

JoesemM · ‎August 08, 2023

Hello, @lauriem. I am here to provide you with helpful tips on how to rectify double entries and ensure that your account is reconciled without any issues.

You'll want to review the journal entry created and ensure that it is set up in the following manner. Additionally, it's advisable to contact your account to ensure that the 200, 000.00 is recorded properly with the interest so your books are accurate.

Here's how:

Go to Company, and then select Make General Journal Entries.
Change the date to the correct statement date of your beginning balance.
Select the account you want from the Account drop-down.
Enter the correct opening balance in the Debit column.
Select Opening Balance Equity
Choose Save & Close or Save & New.

For more details about creating journal entry, follow the steps below. It also contains steps on how to delete a journal entry: Create a journal entry in QuickBooks Desktop for Windows or Mac.

Please refer to these links to learn how to reconcile your accounts seamlessly and resolving reconciliation problems in QuickBooks:

Feel free to update me in the comments section on how your progress is going. If you have any other concerns about reconciling accounts or questions about beginning balances in QBDT, I am more than happy to assist you. Stay safe.

Rainflurry · ‎August 09, 2023

@lauriem

The advice given by @JoesemM is incorrect. There is no beginning balance in this case since you wrote a check to fund the new account so delete the entry for the beginning balance.

lauriem · ‎August 09, 2023

Hi, thanks for your suggestion

After implementing this I still have $200,000 in uncleared transactions in the debits and credits section and $400,000 as an ending balance shows up on my Reconciliation Report

Ideas?

lauriem · ‎August 09, 2023

Hello-if I delete the je, then there's no beginning balance on the reconciliation screen

How do I rectify that?

Rainflurry · ‎August 09, 2023

@lauriem

The only entry needed is to write the check from the funding account and assign the new bank account to the check. That will reduce the bank account where the funds came from (Account A) by $200K and increase the new account (Account B) by $200K. The only entries you want on your reconciliation screens are:

Account A: $200K payment

Account B: $200K deposit

Your beginning balance in Account B should be $0. The ending balance is $200,118.36 (the initial deposit of $200K plus the $118.36 deposit of the interest earned). Clear them both and you should be all set.

FritzF · ‎August 15, 2023

Hello, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Stay safe and have a great rest of the day.

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Beginning balance confusion in nonprofit desktop