This is a bit complicated so I hope I explain it correctly, and I apologize in advance if I don't.
I recently started working at a new place and have been bringing the bank recs up to date. The procedure for recording payroll is as follows: Direct deposits are initiated at the bank on a Thursday but are entered into the QB payroll account with the following Monday's date. A transfer of funds is also initiated that same Thursday, from the operating account to the payroll account to cover all paychecks.
The complicated part: while the paycheck/direct deposits are actually funded from the payroll account (a totally separate bank account and QB company file), they are recorded in QB in the operating account (for informational purposes I imagine). The problem is they don't actually clear from the operating account. What shows on our bank statement is the total funds transfer, which corresponds to all the paychecks entered, so it's a wash.
Here's the more complicated part... there was a funds transfer on January 31st, and it covered the payroll which was entered into QB as 02/04/19. The statement closes on 1/31/19; so the transfer appears, but there's nothing to apply against it and I won't be able to reconcile.
Is it just a matter of having to change the paychecks' dates? I can't reconcile items dated after the statement closing date, can I?
Glad to see you here in the Community, MonicaG.
I appreciate the details you've provided. Let me give you more information about reconciliation via QuickBooks Desktop.
To answer your questions, there's no need to change the paycheck date. The reconciliation in payroll, the transaction posting or paycheck posting is based on the paycheck date of the payroll.
If your paycheck date is dated 1/3119 then it should be included in your statement ending 1/31/19. If there are transaction dated in January, and you closed the reconciliation for the month of January and did not include this transaction, this will show up on the next reconciliation.
You can more insights in this article: https://community.intuit.com/articles/1199045-reconcile-in-quickbooks-desktop.
If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. To reach us, please follow these steps:
I'm always here if you need further help with reconciling your payroll transactions. Have a good one.
The paychecks are dated 02/04/19 but the transfer that funded the paychecks (which is what appears on the statement) is dated 01/31/19. So there is a transfer from our account in January that isn't reflected in QB until February. So my reconciliation will be off by the entire amount of the transfer.
Thanks for getting back and providing further details about reconciling your bank statement and paychecks. Allow me to chime in and help.
You can reconcile these transactions by making sure the dates are filtered after the statement's end date.
This should help get you on the right track in reconciling your bank's statement for January.
If you need help in going through the steps, you can always contact our support for help. The contact details are provided by my colleague @RoseMarjorieA.
Please let me know if you're able to reconcile the paychecks. I'll always be here to help if you need further assistance.
Thanks again for your help.
So the answer to my question is that I *can* include items in my reconciliation that are dated after the statement closing date, correct?
If so, I didn't realize that I could do that, and I guess that's where my confusion came in.
Hi again, @MonicaG.
Thanks for the quick reply. Yes, you're correct you can include them in your reconciliation.
If you need anything else, please don't hesitate to visit us again in the Community. I'm always here to help. Have a good one.