I went to reconcile a new account and saw that it was short the previous month's interest so I entered the interest amount by using a Miscellaneous Transaction. Then I went back to the reconciliation and realized that it had been 2 months already with this account and I needed to enter the start date as a month earlier. Then I saw that the interest for that earlier month had already been entered. So I went back to Miscellaneous Transactions and wrote a reverse transaction. But then when I go back to my reconciliation, it does not balance. The three interest transactions show up correctly but the notes at the bottom show that the amount of the interest is Unresolved and there is a discrepancy.
That is, it shows:
Withdrawal:$8.61 (journal entry J1378)
Deposit:$8.61 (journal entry J1380)
With all the items checked off, one deposit should cancel out one withdrawal with would leave the $3500 plus the $8.61 for a balance of $3508.61. So, there should be no discrepancy....right? And why do BOTH Withdrawals for $8.61 have the journal entry 1378? When I print a report of the journal entries is shows only ONE withdrawal of $8.61 (J1378) and ONE deposit (J1380).
Maybe the interest had NOT already been entered so when I put it in and reversed it out, it is now short. But then, WHY do I see TWO interest charges in the reconciliation (with the same J #???). I can't imagine Simply Accounting being BROKEN, but it just doesn't make sense.
Under the Worksheet Tab, General Ledger Account it shows:
Opening Book Balance: -$8.61
Transactions Recorded in Account: $3508.61
Closing Book Balance: $3500.00
Any idea what is going on and how to Reconcile this account????
Which accounts were involved for J1378 and J1380?
To investigate click Reports>Journal Entries>All> Start=1378, Finish=1380.
J1378 is a Miscellaneous Transaction:
debit $8.61 interest expense
credit $8.61 Credit Card
credit $8.61 interest expense
debit $8.61 credit card
On the reconciliation J1378 is shown TWICE
but on a transaction report it only shows it once and therefore J1380 cancels it out
In the Reconciliation window putting a check marks on both J1378 and J1380 will cancel them out. When the payment clears in the account you will then put a check mark on the second J1378 and that should square things off. If it does not, it means that your previous reconciliation was not correct and you should wait for your next statement which will include the "overpayment".
Incidentally, when you have interest expenses for a credit card, rather that doing a miscellaneous transaction, you could enter it directly in the Reconciliation window under the Expense tab.
That is the way it should work I thought. But it doesn't. That is my problem.In the Reconciliation Window. I check off J1378 and J1380 to cancel them out. Which leaves me with another J1378 for $8.61 and the $3500.00. The opening balance is 0, the closing is $3508.61. Both amounts need to be checked off (cleared) which I do. I expect it all to balance out....but it doesn't!It says:Resolved $3508.61Outstanding: 0Unresolved: 8.61Discrepancy: -8.61 Where the heck is this unresolved $8.61? I have checked EVERYTHING off! So why does it say that there is still $8.61 unresolved? This doesn't make any sense. If everything is checked off, how can there be anything unresolved?
This is the first reconciliation so it can't be an overpayment from a previous statement.
PS Thanks for the tip on entering Interest!
PS ....how can you have 2 misc. transactions with the same number anyhow??
When I list all misc. transactions, only ONE J1378 shows up...making it look like the $8.61 cancels out with my reversal and no other interest charge is left. But in the Reconciliation Window TWO J1378 show up, so when one is cancelled with my reversal, one still shows up as being there (which is what it should) but in the Unresolved note at the bottom it says that amount is still unresolved? It doesn't make sense! If all that is left is $3500 + 8.61, and it started at zero and ended at 3508.61....should it not balance????
Without making any changes to the settings you described above i.e. with Resolved $3508.61Outstanding: 0, Unresolved: 8.61, Discrepancy: -8.61 while holding down the Ctrl key hit the J key: what is the journal entry that would be generated if you decided to post the Reconciliation as is?
If I click on the CTRL J keys then a blank report comes up. That is, it says:
and doesn't list any transactions.
Go ahead and take the plunge....post it. Everything will be alright. Following that check the Ledger report for your Interest expense account and you will see the amount is correct.
Check the dates on the entries for that interest. I had the same issue on my first bank reconciliation. I wanted to do the bank rec for September 2007 so I started with a 0.00 Opening Balance when I got to the end everything was checked off but I still had a discrepancy. Everything I expected to be there was so I didn't think anything was missing. The issue was that I had something entered as in the bank account by error and it was dated August 2007. So it was messing with my numbers. It didn't show in the reconciliation as a prior outstanding amount because it was the first rec! Look at the entries in your Trial balance for that account and see if anything is entered prior to the month you want to reconcile. If this is the first rec it might be the issue for you as well.
I had already tried changing the start date (for a year earlier) so if anything had been entered by accident on a wrong date that it would show up. But no other transactions showed up. Changing the opening balance to -8.61 fixes the discrepancy but still shows 8.61 unresolved. Plus the opening balance is really 0.00 so I hate to just change it when it is not supposed to be changed.
Thanks for the tip though.
on the JE that seems like it is duplicated are you sure it is a CR to the Bank and a DR to Credit Card Expense? I know it seems obvious but after you have looked at something long enough you see what you think it should be not what it actually is. Maybe it was entered incorrectly and went in and out of the bank account so that that is why it is there twice then when you did the adjusting entry you put it back in the bank again. Look in the other account for Credit Card expense and see if things look good in there. Bank rec's can be sooooooooooooooooooooooo frustrating. Hangin there. I'm with you never just go with it you can really make things much worse. Be sure you have located the original error and fix it then reconcile. It will only come back to haunt you at YE if you don't. Its easy to push it thru to get it done if absloutely needed but I have always found things need fixed eventually anyway so might as well do it now instead of waiting til it gets worse or more convoluted with other errors!
Which ledger report? Reports-Transactions-Miscellaneous? Or Reports-Financial-Trial Balance? Or just General-Accounts-and the account balance to see if it changed? I am so confused. I can't understand why there are TWO journal entries with the same number (how can they have the same number) or why there are TWO journal entries listed in the Reconciliation but when I check Transactions By Account, there is only ONE journal entry of that number listed.
Which ledger report? Reports-Transactions-Miscellaneous? Or Reports-Financial-Trial Balance? Or just General-Accounts-and the account balance to see if it changed?
I am so confused. I can't understand why there are TWO journal entries with the same number (how can they have the same number) or why there are TWO journal entries listed in the Reconciliation but when I check Transactions By Account, there is only ONE journal entry of that number listed.
Without making any changes to the settings you described above i.e. with Resolved $3508.61 Outstanding: 0, Unresolved: 8.61, Discrepancy: -8.61 while holding down the Ctrl key hit the J key: what is the journal entry that would be generated if you decided to post the Reconciliation as is?
Argh....I am frustrated. So I decided to go ahead and just post it. After all, you said that the unresolved and discrepancy cancel each other out. But Simply Accounting would not let me. It came up with an error saying:The statement end balance does not equal the sum of the opening balance, transactions and adjustments. Please ensure that the opening and ending balances are correct and match your statement. As well, please ensure that transactions are properly recorded with correct amounts and dates.
Withdrawals: 3500.00, 8.61, 8.61
Resolved:3508.61, Outstanding:0, Unresolved:8.61, Discrepancy:-8.61
As far as I know the 8.61 withdrawal and deposit cancel each other out...which leaves 2 withdrawals...3500 + 8.61 which totals 3508.61. With a starting balance of 0 plus 3508.61 the ending is 3508.61. So it should all balance!
So, I don't understand 1) Why is doesn't balance in the first place. 2) How the other 8.61 appeared when transactions by account shows only ONE withdrawal of 8.61.
I didn't think I had entered the 8.61...so I entered it and then saw in the Reconciliation that 8.61 was already there. So that is when I reversed it with the 8.61 deposit. However, it is only the Reconciliation Window that shows the TWO withdrawals of 8.61. In all other reports it shows ONE withdrawal of 8.61 and one deposit that cancels it out. I am confused why TWO are in the reconciliation and only ONE in other reports.
Balance Forward :0
General Ledger Account
Opening Book Balance:-8.61
Transactions Recorded in Account:3508.61
Closing Book Balance:3500.00
Transactions not recorded in Acct..
Adjustment Required/unresolved: 8.61
Adjusted Book Balance:3508.61
What is a Book Balance? Why does it open at -8.61? Could this be related to my problem?
Try this procedure: In the Statement End Balance field enter 3500.00; put a check mark on all transactions appearing (3500 & 8.61); What are the amounts for Unresolved and Discrepancy at this point? What is the Journal entry if you hit Ctrl+J at this point? One more thing: Go to Maintenance, click on Check Data Integrity: Is everything balanced?
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