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!

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!