did someone screw up your perfectly
correct QuickBooks Online records did
they change something after you did bank
reconciliation well don't worry because
as we do this third consecutive bank
reconciliation together we will learn
how to fix things using the
reconciliation discrepancy report
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if you have any questions about this
topic you can leave them in the comment
section below and I'll do my best to
help you and of course if you feel the
video helped you I hope you will click
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all the time the reconciliation
discrepancy report shows every change to
any transaction that was already cleared
in a prior reconciliation it shows every
detail of every change like who changed
it when it was changed and most
importantly how it was changed it gives
you the ability to fix most changes
right from the report but you may well
ask why do we need to use it in the
first place well let's imagine that
we've always been doing bank
reconciliation so that our bank
statement records always match our
QuickBooks Online records this means
month after month both we and the bank
are recording the same transactions and
at the end of each month we stop and
reconcile and make sure we agree we've
done this for several consecutive months
and we never move on to the next month
until we stop and reconcile to make sure
that we agree with the bank
after each month when we get the bank
statement and our records are always in
agreement that's how we know our records
are correct but if somebody comes along
and changes something now we have a
difference between our records and the
banks and the cleared balance will
change because you removed something or
change something before the date of the
last reconciliation now our records are
out of sync with the bank and if that's
the case you will never be able to get
the current month to match no matter
what you do because you're already
starting with different numbers that's
why you have to use
a reconciliation report because you
cannot begin reconciling with the wrong
beginning balance you must fix what was
changed in the past after the last
reconciliation you must use the
reconciliation discrepancy report to see
what was changed how it was changed and
it will even help you change it back
let's take a look as we attempt our
third consecutive bank reconciliation so
let's imagine that we are innocently
attempting to do the third month's
reconciliation by clicking on the COG
wheel and click reconcile now as soon as
we get to this window you have a warning
your account isn't ready to reconcile
yet and what's the reason your beginning
balance is off by a certain amount right
away that's an indication that somebody
changed something that was reconciled
before the last reconcile reconciliation
date and they changed that whatever
those things are after the
reconciliation date now let's go ahead
and click we can help you fix it and see
what's there now what you're looking at
are all the changes that were made to
items that were recorded before the
reconciliation date and cleared the bank
that somebody came along and changed
after you did the reconciliation let's
look at how this is organized first of
all it tells you the transaction itself
for example this check for $500 and I
don't know why it's not telling you the
date but that check is deleted I happen
to know what that check is and I don't
know why it's not showing you any
information about the check I guess we
could click view you can view it and you
can see that it was you know all the
details about the check it was checked
none before so check now before for $500
was deleted and that was one chain
so let's go back to reconcile and look
at the report again what else was
changed well this was uncleared in the
register window in other words we
learned in a previous video that the
register window is the only window that
can clear and unclear a transaction
other than the reconciliation window
itself so you can see that this fourth
payment this sale receipt number for
that was done for Betty On January 18th
in the amount of 4800 somebody went to
the register and uncleared it and
unreconciled it and it removed it from
the cleared balance and the third change
is a check check number nine check
number nine was already reconciled at a
hundred and fifty dollars and it matched
the bank someone came along after we did
the last bank reconciliation and changed
it to five hundred and ten dollars so
you can see these are all the changes
that happened to anything that was
recorded before the last reconciliation
date and someone must have come along
and screwed up your numbers well what do
we do well changed an amount is the
easiest one to fix and you can fix that
right here from the report if you click
view and well you see the differences in
their view but you can click right on
the transaction itself if it's if it's
not deleted and if it's not deleted you
could just come along
and you could just change it to the
original amount and then click Save and
close and then click yes you're getting
a warning because QuickBooks doesn't
know that we're fixing it now when you
go back to reconcile you see we click
here and you can see that amount has now
been fixed okay what else do we need to
fix
well this 4,800 for sale receipt number
for that was uncleared and unreconciled
in the red
just a window we have to go back and fix
it now in order to fix that in the
register window you can clear and
unclear a transaction but if you fix it
you have to keep clicking on it till you
get the letter R that means QuickBooks
put it back as part of the cleared
balance and it is rear eken Scyld
let's see if we can find that in the
register well by viewing it like this we
will not be able to fix it we have to go
to the register which means we click
accounting chart of accounts and we go
to the cash and bank account the one
we're working on and we click view
register and now we try to find that
sale receipt that happened back in
February
okay let's which one was it now
okay that was sale receipt number four
for Betty sale receipt number four so
let's take a look okay
sale receive four here it is this 4,800
some cosmic fool came along and click
this and removed it from the cleared
balance by removing the are let's go
ahead and click on it and let's you know
to edit it we'll click Edit and we'll
click open excuse me well we're not
editing the actual transaction we're
just clearing it so just click here now
don't click at it we're not changing the
money about clicking this box if you
click once it's a C which means it was
downloaded from the bank click again and
it's reconciled and after you save and
click yes you're getting a warning that
you're changing the cleared balance but
in this case we're fixing it so we click
yes and now when we go back to the
reconciliation report you can see boom
that the only one that remains is the
one for $500 that was deleted now
deleting is a different story a deleted
transaction must be re-entered
then after you reenter it you must clear
it in the register window well I happen
to know enough about that check to be
able to reenter it I happen to know that
that was made on February 5th check
number four for five hundred dollars to
establish the petty cash fund now you
can find out more about what's in your
reconciliation or what was changed by
clicking view now of course if it's a
deleted transaction you can't click up
here like we did for the other two and
go back to the original transaction but
we can click show all and get a little
more information about it you can see a
little bit more about it it says the
date and it says the amount and it says
the number and the reason why there's no
name is because when we establish the
petty cash fund a few months ago we left
the name blank because we were not
really writing it to a person but all we
have to do is re-enter it exactly as
it's written here and then don't forget
to clear it again so that it will be
part of the cleared balance we click new
check the date of the check was February
4th of excuse me February 5th of 2017
and there was no payee but the money
went to the petty cash account which
should be somewhere here yep cash on
hand petty cash and the amount was $500
so we re-enter what was improperly
deleted make sure it says check number 4
because that was the check number before
it was deleted now we're not finished
fixing it if you try to reconcile right
now you will still see the $500
difference that's because you reentered
it but you did not again go and clear it
to make it part of the cleared balance
you have to take this extra step go to
the chart of accounts so that you can
open up the register find the check that
you entered and the register is in date
order so when we come down here here it
is now click on it so we edit it and how
are we going to clear it well what you
have to do is come across to this here
to this box here where the R should
normally be clicking once only puts a C
and that tells QuickBooks that was
downloaded from the bank but clicking it
twice puts an R which means it was
already part of a bank reconciliation so
click save and click yes because we're
fixing it and congratulations now when
we click reconcile you can see that
there is no discrepancy and we are ready
to do our third consecutive month
without a problem and now that we fix
the beginning balance let's do March's
reconciliation normally you can pause
the video here and try it yourself if it
doesn't work then you can undo what
you've done and follow along with me
let's take a look we're going to click
reconcile and here we are and now we're
just going to put in the ending balance
which I can copy right from the
statement because I'm using Excel you
see and of course the o you should get
rid of the dollar sign and of course the
ending date which should be March
I guess it's March 31st of remember 2017
so now we have we are beginning
information and we click store
reconciling now of course there's a
difference and we go one by one just
like we learn let's scooch over here a
little okay so
transaction check number 10 for 1700
let's check where it is is it here
yes it is we mark it off in QuickBooks
and we change the color here in the
reconciliation what about check number
11 for 450 is that the same yes it is we
mark it off and then we come back okay
the $8,000 deposit do we have an $8,000
deposit
yes we do we mark it off and we come
back change it to blue I'm gonna go a
little faster
Rex repair shop a check for $1,000 the
exhale screwed up the number but we do
have a check to rex repair oh he didn't
screw up the number it's a long weird
number because that was an expense and a
transfer paid online rather than paid by
check but it's good
so we make it blue now what about this
2660 is that their twenty-six sixties
mount matches everything matches click
blue good what about 2400 okay the 2400
is there good what about what about
we'll make it blue if it's in quickbooks
online what about this 595 let's check
it out 595 is there so we come back to
excel and make it blue what about check
number 13 two staples for 725
check number 13 two staples for 725 I
think I could get rid of this powerpoint
here okay now let's make it blue if it
was and quickbooks online now
check number 702 upa check for 702 UPS
was also there okay it's a big weird
number but it's there so we come back
and we make it blue let's scroll down a
bit
what about this 230 dollar deposit is
that there okay let's go yeah sure it is
so if it's there then we come back and
we mark it in blue
normally it would have a description
that explains it a little better when
you download it from the bank but I'm
using Excel so what about this check
number 15 - twelve hundred - Betty let's
check if that's there 1200 - Betty check
number okay they have the check number
there okay let's make it blue right now
what about this 2400 this 2400 is that
there yes it is we mark it off and we
come back and we make it blue what about
this negative 1400 is that there yes it
is we mark it off and we come back and
blue what about this $700 deposit yes it
is we mark it off so if it's in
quickbooks online we come back we make
it blue we're almost finished what about
this 900 okay 900 deposit is there and
again a real statement would have a
little more information in the
description what about the 3980 3980 is
there so we come back and we mark it in
blue what about the 39:24 is that their
39:24 yes it's there we come back and we
mark it in blue now look carefully
there's still a difference but look what
happens at the moment we mark off the
second to last one 1740 is here so that
means there's only one unchecked
transaction in quickbooks online that's
equal to the remaining difference so
this 1740 we agreed was there we'll make
it blue that means this is all that's
left on the bank statement and again I
strongly stress only at the moment you
mark off the last item of the bank
statement that's the moment that it
clears and quickbooks online and the
difference goes
to zero so we cleared it in QuickBooks
Online which means we mark off the last
one on the statement now when we're done
everything is marked off the March
statement they may or may not be
completely marked off in QuickBooks
Online but at the moment you acknowledge
that everything's marked off the March
statement that's the moment the
difference became to zero we click
finish now and of course we have added
another report to our series of reports
for bank reconciliation and this report
says the same things that we discussed
about this report in previous videos
congratulations you have finished three
consecutive months
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