Wrongfully Categorized transactions and already reconciled

Hello there, Blackoutfab.

I know the urgency to categorize your transactions correctly to keep your accounts up to date. Let's modify your transactions by batch so you'll not go through each and every single one of them in your register.

With your expense transactions, you can visit the Expenses menu. You can filter the transaction you want to update, then categorize them.

1. Go to the Expenses menu.
2. Select Expenses.
3. Click the Filter drop-down.
4. Choose the Type, Dates, and Category.
5. Select Apply.
6. Choose the transaction by clicking the box beside the Date column.
7. Click the Batch actions drop-down arrow, then select Categorize selected.
8. Select the correct category by clicking the drop-down arrow in the Categorize Selected window.
9. Click Apply.

I've attached screenshots below for your reference.

Moreover, categorizing your sales transactions by batch is currently unavailable. You can pull up the Transaction Detail by Account report for the complete list.

1. Go to the Reports menu.
2. Type Transaction in the search box, then select Transaction Detail by Account.
3. Select the Customize button.
4. Set the Report period in the General section.
5. Select the Filter drop-down, then click the box beside Transaction type and select the transaction by clicking the drop-down arrow.
6. Click Run report.

From there, open the transaction manually by selecting it and update the category type.

You can save the report you've just customized so you can quickly run it in the future, kindly refer to this article for the steps: Customize reports in QuickBooks Online. It also contains information on how you can send it by email on a recurring schedule. 

I'd also recommend reconciling your accounts every month. This way, you'll be able to detect discrepancies early and make sure your books are accurate.

Please let me know if you have other concerns. I'm just around to help.

Follow steps outlined by @Rea_M to batch recategorize although things change but I used to be under the impression that this capability was exclusive to the accountant and/or Advanced versions.

Rest assured, however, that nothing you change in a reconciled transaction other than date or amount will have any effect on reconciled status. You could change the "paid to" or expense category from months ago with no I'll effect.

You can set a default COA for vendors or set banking rules (which tend to change at will for no apparent reason) but more important is to Review each and every transaction in your banking import and -even though allowed by choice - do not select any automatic posting without review 

I am in the same mess.  I THOUGHT that I had everything organized and when I proudly handed the Management report to my husband, it was all WAY off.  Although I have kept all of the accounts reconciled each month, he is just NOW telling me where he wants things catagorized.  Yes, this would have been helpful on day one!  He also wants me to change the name of the catagories.  I have read some answers already given but  my QBO looks different. HELP!  

Thank you!

Let's work hand in hand to organize your account, lauriesiegmund.  

You can follow the procedure by my peer above on how to re-categorize the transaction. However, you've mentioned that your account has been reconciled, with that said as John-Pero mention, nothing you can modify in a reconciled transaction other than the date or amount will take effect in the status. You could change the "paid to" or expense category from with no effect. 

Here's an article you can check for further information about the categorizing transaction in QuickBooks:  

• Categorize and match online bank transactions in QuickBooks Online 

• Customize invoices, estimates, and sales receipts in QuickBooks Online 

If you have other questions or need further assistance, let me know in the comment. I'll be more than happy to help. Have a wonderful day!

I have a similar problem...

I realized I categorized a deposit as a Member Capital Investment (member putting $ into our account), but it was actually revenue. This transaction had already been reconciled. I went back in and changed the category to reflect the correct income account. In the process I unreconciled that transaction and now all my reconciled statements are off. 

It is only one transaction, but I can't figure out how to fix it.

Hello @jbledsoejr,

We can get your transaction marked as reconciled, no problem. Let me show you how:

1. Go to the Chart of Accounts.
2. Search for the correct account of the transaction in question.
3. From the Action column, select View register.
4. Locate the transaction to edit.
5. In the reconcile status column (indicated by a checkmark), repeatedly select the top line of the transaction to change the status of the transaction.
   • C - Cleared from the bank
   • R - Reconciled
   • Blank - Not cleared or reconciled

You can follow the same steps above for any transactions you've edited the amount or account related to it since its reconciled status will be removed.

Should you encounter a situation where your account's opening balance doesn't match its bank statement, check out this article: Fix an opening balance to match a bank statement. It lists a number of possible scenarios for this issue, then provides you steps on how you can resolve each of them.

Let me know if you have any additional questions or if I can help you in any way. I’m just a comment away.

Dear Quickbooks team,

I have uploaded the transactions for the last three months now, but have a hard time to assign the right category for each of them. 
how can I make it easier for me to categorise them in the right manner, so further reports (management figures) are accurate? I would really appreciate your help.

kind regards,

Gulzira 

Hello there, Gulzira

I'd like to help and make sure you can categorize bank transactions accurately.

If you just uploaded those bank transactions, you can utilize the Banking window then go to For review. This way, you can either Add the transaction or Match it from your existing records.

Otherwise, if you already added or match it incorrectly, you can undo them to be able to modify it.

Here's how:

1. Go to Banking on menu.
2. Select the bank account where you uploaded the transactions.
3. Click on Categorized tab.
4. Locate the transaction and click Undo under Action column.
5. Go back to the For Review tab.
6. Select the transactions you want to modify.
7. Once done, click on Apply.

Also, you can select multiple transactions to categorize them in one account at the same time.

Here's an article that'll surely help you set up bank rules that automatically categorize transactions for you.

Let me know if you still have questions and clarifications about banking. I'm always here to help. Have a nice week!

Thank you so much for getting back to me. 

Yes, that’s all right, just my problem is: quickbooks always automatically categorises under a specific category or in other words: it offers the category to me. The question is: shall I always agree with the category it offers and simply always add or there is a template of transactions falling under one or the other specific category, which I could easily check the category or the automatic category choice of Qb is always highly reliable? I am just afraid to trust it and make mistakes, which affect further reports.

Thanks a lot for your response. I am looking forward to receiving your feedback.

Kind regards,

Gulzira 

Hi, Gulzira.

Let me share some ideas about categorizing your bank transactions.

QuickBooks offer or suggest category options depend on the details provided by your Financial Institution. You can either accept or modify them. If you'd want to automatically categorize them base on your preference. You'll have the option to set up bank rules. This way, those transactions will be categorized accordingly to the correct account.

Here's how to set up bank rules:

1. Click the Banking or Transactions menu.

2. Select the Rules tab, then choose the New rule.

3. Enter a name in the What do you want to call this rule? field.

4. From the Apply this to transactions that are dropdown, hit Money in or Money out.

5. From the In dropdown, choose the bank or credit card account.

6. Set the rule conditions. Decide the transaction must meet All or Any of the conditions. You can add up to 5 conditions.

7. In the Conditions fields, specify whether the rules apply to Description, Bank text, or Amount. Then select Contains, Doesn't contain or Is exactly to decide how QuickBooks applies the rules.

8. Select the settings for the rule. Choose the Transaction type, Category, Tags, and the Payee to apply.

9. Hit Save.

Feel free to check this resource for more insight: Categorize and match online bank transactions.

Reply to this post if you have further questions about categorizing transactions. I'll be here to help you.

Dear Quickbooks team,

thank you very much for to prompt response. 

i am manually uploading the transactions to Quickbooks banking for the last 3 months and after that I am stuck. Sometimes I’m not sure which category or if it is a transfer right for the transaction? 
Is there a guide for activity or transaction categories?

I am a bit lost how to identify the category or transaction type correctly. 

kind regards,

gulzira 

Hi Gulzira,

I know how important it is to categorize your transactions correctly. However, we can only tell you about the process of categorizing transactions. With regards to choosing which category is best for your transactions, I would recommend getting assistance from an accountant. They are more capable of advising the accounting side of your transactions.

We can only teach you the How-do-Is.

Hope this clears up everything. If you need further assistance, please let me know.

Hi JessT,

is there any accountant Suport here which I might use for 1/2 hours?

i would appreciate, since I would have to finish up first quarter transactions ASAP.

regards,

gulzira 

I'm glad to see your response, Gulzira.

Consulting an accountant is a good idea. They will help you identify or choose the right category for each transactions and your books will stay accurate.

Let me walk you through on how to find a certified accountant.

Here's how:

1. Go to to this link: https://quickbooks.intuit.com/find-an-accountant/
2. Tick the box under Find an expert in.
3. Enter your address.
4. Click on the Search button.

You can also checkout this link that'll surely help once you found an accountant: Invite an accountant to review your accounting in QuickBooks Online

Let me know if you still have questions and clarifications. I'll be around. Have a nice day!

I have the same issue/ question. I have reconciled my books as of April 30th 2022. However, I have noticed a transaction from jan 2022 that is reconciled has been categorized wrong as loan principal payment and needs to be edited and spilt out into two categories as loan interest payment and loan principal payment. Will this edit cause me to have to re-reconcile everything from jan 2022?

I can help you with updating the category of your reconciled transaction, @9130 3525 3968 4316.

Yes, you can change the transaction categories you've created. This will not affect or cause any issues with your current reconciliation. You don't have to undo everything from January 2022.

Here's how to update the category directly on the transaction:

1. Go to the Transactions or Banking from the left menu then proceed to the Banking tab.
2. Choose the tile for the bank or credit card account you downloaded the transaction from.
3. Click the Categorized tab and locate the transaction you want to move.
4. Select the blue transaction link in the Added or Matched column to open the transaction.
5. In the Category dropdown, choose a new account for the transaction.
6. Click on Save and close once you're done to save the changes. 

Refer to the following article for more information about undoing or unmatching downloaded transactions if you've categorized them into the wrong account: Unmatch downloaded bank transactions or move them to another account.

In case you'll encounter any errors when reconciling your accounts in the future, refer to the following article for troubleshooting steps based on your situation: Fix issues for accounts you've reconciled in the past in QuickBooks Online.

Let me know if you still have questions with editing the categories of your transactions in the Reply section below. Have a great rest of the day!

Thank you for the help. I will fix the categorization, but before I do. Here is another question:  The amount is $1000.00 for the transaction that needs to be split between 2 categories. I am not changing the exact amount ($1k) but I do have to split the amount $498.00 interest category and $502.00 principal category. Will this then cause my reconciliation to be off since I am kind of changing the amount but it will still equal the same number that has been reconciled for ja 2022?

Thanks for getting back with the Community, 9130 3525 3968 4316.

To properly identify if splitting your transaction will cause issues while reconciling, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   

Once you've found an accountant, they can be contacted through their Send a message form:

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
   
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
   
3. Hit Send message.
   

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

Please feel welcome to send a reply if there's any questions. Have a wonderful day!