Reconciliation

DiLo · ‎December 19, 2023

Really new at bookkeeping. Reconciling a previous month from bank account... shows $0 as if it is reconciled, but bank has a number of checks clearing that are not showing on my QBO. I am finding the transactions but they did not get marked paid when I printed the check ... don't know how to mark them paid or why this happened. please advise

Rainflurry · ‎December 20, 2023

@DiLo

"Normally when I create a bill ... then write a check for it.. the bill is marked paid. On several of these it did not happen.. the beginning and ending balance for that period was correct... It shows that I am perfectly reconciled... but there are still a number of checks that cleared the bank that were not showing on my side...that is when I discovered that the bill didn't get marked paid when the checks were written. I tried to "mark as paid" to see if they would then show up in my reconciliation list... but there is no option to mark it paid... and I am confused about how it can balance when there are items that are leftover that are not "accounted for' from the bank?? If my bills are not marked paid after the check is written.. it should not balance?"

OK, so there seems to be some confusion here. Writing checks or paying bills (these are different) will both show in your bank account register. They will also both show when you go to reconcile your bank account (Transactions > Reconcile). So, it makes no difference whether the payment paid the bill or not - if they both come from the same bank account, they should show when you go to reconcile. If you have bills and checks that need to be connected in order to show the bill as paid, go to the check and assign Accounts Payable (A/P) to the check. Then go to New > Pay bills and find the bill. When you click on the bill's check box, you will now have a credit that was created by the check assigned to A/P. Apply that credit to the bill and you are all set. The bill is now marked as paid.

The advice given by @ShyMae:

"To link the created check and bills:

1. Hover over Expenses, locate the check transaction, and double-click it.
2. On the right side, the bill will pop up.
3. Click Add to link it, then press Save and close."

doesn't make sense to me either so I don't think you're doing anything wrong.

View solution in original post

JessT · ‎December 19, 2023

Hi DiLo,

Thank you for getting help with your reconciliation. I understand that your bank is showing cleared checks, but you can't find them in QuickBooks. However, can you please clarify this part, "I am finding the transactions but they did not get marked paid when I printed the check ... don't know how to mark them paid or why this happened." What transactions are these?

Normally in a reconciliation, you need the beginning balance, the transactions within the statement period, and the ending balance for that period. Therefore, you just need to make sure that you enter all transactions in QBO. If there are missing entries like check payments, bills payments, etc., you can enter them manually or add from the downloaded transactions.

For checks, there are cases when the payee will endorse them on the next month. Therefore, you will skip them when you reconcile the current month. Let's have a sample below:

Transaction Records in QBO and from the bank's SOA

Reconciling November 2023

Here's an article with a video tutorial: Reconcile an account in QuickBooks Online.

Let me know if you still need more help with reconciling your account. Take care and have a good one!

DiLo · ‎December 20, 2023

OH thank you for your response! For the clarification... Some of the checks that cleared the bank and are on my bank statement... are not on my QBO journal in the "reconciliation list" .... I thought somehow they were not "entered" into QBO... so I searched 'expenses" and found the "bill" but it was not showing as a paid bill... it still has an open balance. Normally when I create a bill ... then write a check for it.. the bill is marked paid. On several of these it did not happen.. the beginning and ending balance for that period was correct... It shows that I am perfectly reconciled... but there are still a number of checks that cleared the bank that were not showing on my side...that is when I discovered that the bill didn't get marked paid when the checks were written. I tried to "mark as paid" to see if they would then show up in my reconciliation list... but there is no option to mark it paid... and I am confused about how it can balance when there are items that are leftover that are not "accounted for' from the bank?? If my bills are not marked paid after the check is written.. it should not balance? I am so new to this ... I have never kept books before.. the terminology is probably all wrong... I am so sorry... Our bookkeeper quit and this job landed on me by necessitiy ... so... any help is tremendously appreciated.

ShyMae · ‎December 20, 2023

Hello there, @DiLo. I'm here to share why your bills show unpaid and provide the steps to get them marked as paid.

Just to clarify, please be assured that the balance will remain correct even if the bill wasn't marked as paid after the check was written.

Based on the information you've provided, it appears that the check and the bills were not linked, which is why it wasn't marked as paid. I am here to assist you with the steps needed to rectify this issue.

To link the created check and bills:

Hover over Expenses, locate the check transaction, and double-click it.
On the right side, the bill will pop up.
Click Add then to successfully link the bill, make sure to change the check account to Accounts Payable.
Hit Save and close.

See attached screenshot for reference.

Once done ensuring that the bills were marked as paid, you can start reconciling your account. To learn more about how it works in QuickBooks, check out these articles:

I'm still here, ready to back you up if you need further assistance regarding your bills. Kindly tap the reply button to enter your response. Best wishes!

DiLo · ‎December 20, 2023

That sounds simple enough...until I start walking through the steps... I am not sure what I am doing wrong... but those options don't seem to be available to me.

When I hover over expense .... these are my options.

DiLo · ‎December 20, 2023

sorry... hit the wrong button...

DiLo · ‎December 20, 2023

and if I open the bill ... it looks like this... there are no options anywhere to "add" what am I doing wrong?

Rainflurry · ‎December 20, 2023

@DiLo

"Normally when I create a bill ... then write a check for it.. the bill is marked paid. On several of these it did not happen.. the beginning and ending balance for that period was correct... It shows that I am perfectly reconciled... but there are still a number of checks that cleared the bank that were not showing on my side...that is when I discovered that the bill didn't get marked paid when the checks were written. I tried to "mark as paid" to see if they would then show up in my reconciliation list... but there is no option to mark it paid... and I am confused about how it can balance when there are items that are leftover that are not "accounted for' from the bank?? If my bills are not marked paid after the check is written.. it should not balance?"

OK, so there seems to be some confusion here. Writing checks or paying bills (these are different) will both show in your bank account register. They will also both show when you go to reconcile your bank account (Transactions > Reconcile). So, it makes no difference whether the payment paid the bill or not - if they both come from the same bank account, they should show when you go to reconcile. If you have bills and checks that need to be connected in order to show the bill as paid, go to the check and assign Accounts Payable (A/P) to the check. Then go to New > Pay bills and find the bill. When you click on the bill's check box, you will now have a credit that was created by the check assigned to A/P. Apply that credit to the bill and you are all set. The bill is now marked as paid.

The advice given by @ShyMae:

"To link the created check and bills:

1. Hover over Expenses, locate the check transaction, and double-click it.
2. On the right side, the bill will pop up.
3. Click Add to link it, then press Save and close."

doesn't make sense to me either so I don't think you're doing anything wrong.

DiLo · ‎December 20, 2023

Thank you so much... that clarified it for me... Part of it was user error.. not understanding accounting and terminology... but while following your direction ... I figured it out..

Thanks to all!!!!!

AileneA · ‎December 20, 2023

You're welcome, DiLo.

I am pleased to hear that one of the Community contributors was able to assist you with your inquiry and help resolve any issues you may have had. As your Community expert, I understand the importance of timely and effective support, and I am glad you received the help you needed from the Community.

Please know that you are always welcome to post any questions, clarifications, or concerns here, and the Community members and I will do our best to provide you with the necessary assistance. Thank you for your trust and confidence in our services, and have a wonderful day!

AlcaeusF · ‎January 03, 2024

Hello Rainflurry,

Thank you for sharing your input to help address the issue. We love to see members supporting one another! Have a great day.

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