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Level 2

Reconciliation Errors - Off balance

I have a check for a customer of $275.00 but the bank only deposited it for $225.00. I called the bank last week to correct the $50 difference and they gave a $50 provisional credit back to my bank account. (But on a later Bank Statement)    I'm not sure how to check off that payment deposit since it will be -$50 off in my reconciled statement.

Also I did an e-deposit for a $23,000.00 Check. Instead of crediting my account for $23,000.000 they charger me $23,000.00.

After calling the bank they straightened it out they had to Credit me back the $23,000.00 that they charged me and then credit me for the actual $23,000.00 check that was to be deposited.

So there are now 2  $23,000.00 Credits on my Statement now but only 1 customer payment to check off.  How do I properly add and record the transaction history to reconcile my account without applying the $23,000.00 payment to the same customer twice. Because now my account while reconciling has a 23,050.00 difference.

3 Comments
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Community Champion

Reconciliation Errors - Off balance

Good morning @Kimico:

 

Both of these issues are handled the exact same way.  Since the bank corrected both issues but in different month's you will need to make adjusting entries to allow for that.  You could create a $50 check and apply it to bank fees or miscellaneous expense and enter it for the month of the first error.  Tick it off when you reconcile to adjust for the $275 check clearing at $225.  Then you can reconcile.  Write a good note in the memo line explaining that this entry is an adjusting entry due to a bank error that is corrected in the following month.

 

Then, go to the banking>make deposit window and create a deposit for the $50.00 (which in essence will reverse the bank error adjustment).  Make that to the EXACT same account, ie bank fees or misc. expense.  Now you can reconcile the next month's adjustment.  Do the same for the 23k entry.  

 

At the end of the day, you can reconcile and the adjustments will offset themselves.  

 

I hope that helps.  If not, feel free to reach out to me.   :)

 

Lynda

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Level 2

Reconciliation Errors - Off balance

Thank You! So I have the check deposited for $275.00 (even though it was only deposited for $225.00.) So do I enter a charge in my Check Register (With a good note in the memo) for $50.00 to off set it?

Thanks, Kim

Highlighted
Community Champion

Reconciliation Errors - Off balance

@Kimico:  That is correct.  Then enter the reversing entry for the next mo.

 

Lynda

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