Reconcile bank parent and subaccounts together

jkmurf · ‎February 24, 2023

I set up a bank subaccount to record the use of loan proceeds and reclassified the deposited funds to the subaccount. The initial transaction had already been reconciled, but I thought that wouldn't matter, since the subaccount is connected to the parent account. It looks like I was wrong. The reclass threw my reconciliation off. How do I correct this, and can you tell me how to ensure that the subaccount will be tied to the parent account for future reconciliations?

Rea_M · ‎February 24, 2023

Thanks for your immediate response, @jkmurf.

I'll make sure you can fix the issue with your bank transaction and finish reconciling your account to keep your financial data accurate in QuickBooks Online (QBO).

I agree with my colleague @jamespaul that your subaccount is always linked to the parent account. When you select the subaccount while reconciling, you'll only see the transactions under it. With this, you need to make sure to select the parent account while doing so and check that your ending balance amount is correct. To do this, here's how:

Select Settings ⚙ and then Reconcile.
From the Account ▼ dropdown, make sure it's your parent account.
While you're in the Reconciliation window, select Edit info.
Review the Ending balance and Ending date.
Check your bank statement. Make edits as needed.
Select Save.

In case there's still a difference in QuickBooks, you can continue fixing the reconciliation by checking out this article starting with Step 3: Fix issues at the end of a reconciliation in QuickBooks Online.

Also, I encourage you to reconcile your accounts in QBO regularly (every month). This helps monitor your income and expense transactions and detect possible errors accordingly. You may want to check out this article as your reference to guide you in doing and fixing reconciliations in QBO: Learn the reconcile workflow in QuickBooks.

Please feel free to leave a comment below if you have other banking and reconciliation concerns or questions about managing transactions in QBO. I'm always ready to help. Take care, @jkmurf.

View solution in original post

jamespaul · ‎February 24, 2023

Hello, jkmurf.

I would like to help you with the reconciliation correction but I need more details from this.

Reclassifying transactions would likely change your previous reconciliation, depending on how it was done. So, how did you reclassify the transaction? Also, when you say the reclass threw off your reconciliation, are you referring to the balances or the transactions themselves?

Knowing these details would help me narrow down the issue and ensure you would be able to reconcile your bank accounts properly.

Aside from that, I would like to address the part about the future reconciliation. The subaccount will always be tied to the parent account. Let's just make sure to select the parent account when reconciling.

Selecting the subaccount will only show the transactions under it. The entries from the parent or other subaccounts won't appear.

Looking forward to your reply.

jkmurf · ‎February 24, 2023

Thank you for your response. I reclassified the transaction by going in and changing the bank account from the parent account to the subaccount. This resulted in the reconciliation showing that I was at -$750 (the amount of the transaction).

Rea_M · ‎February 24, 2023

Thanks for your immediate response, @jkmurf.

I'll make sure you can fix the issue with your bank transaction and finish reconciling your account to keep your financial data accurate in QuickBooks Online (QBO).

I agree with my colleague @jamespaul that your subaccount is always linked to the parent account. When you select the subaccount while reconciling, you'll only see the transactions under it. With this, you need to make sure to select the parent account while doing so and check that your ending balance amount is correct. To do this, here's how:

Select Settings ⚙ and then Reconcile.
From the Account ▼ dropdown, make sure it's your parent account.
While you're in the Reconciliation window, select Edit info.
Review the Ending balance and Ending date.
Check your bank statement. Make edits as needed.
Select Save.

In case there's still a difference in QuickBooks, you can continue fixing the reconciliation by checking out this article starting with Step 3: Fix issues at the end of a reconciliation in QuickBooks Online.

Also, I encourage you to reconcile your accounts in QBO regularly (every month). This helps monitor your income and expense transactions and detect possible errors accordingly. You may want to check out this article as your reference to guide you in doing and fixing reconciliations in QBO: Learn the reconcile workflow in QuickBooks.

Please feel free to leave a comment below if you have other banking and reconciliation concerns or questions about managing transactions in QBO. I'm always ready to help. Take care, @jkmurf.

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Reconcile bank parent and subaccounts together