now we will learn how to fix mistakes using the reconciliation discrepancy report this report
will show any change to the cleared balance this means any transaction that has already
been reconciled any transaction that has been marked cleared in a previous reconciliation
that has been changed after you reconciled will show up in the reconciliation discrepancy report
you
how do you know when there has been a change to the cleared balance you don't even know if
you should look at the discrepancy report if you don't know that there's been a change to
the cleared balance well the beginning balance of the window of reconciliation will not match
the beginning balance of the bank statement now that's a problem you cannot continue with bank
reconciliation until you fix the beginning balance if you don't fix the beginning balance nothing you
do during the bank reconciliation will make the numbers match if the beginning balance is wrong
let's take a look at what the cleared balance is right now before we make any changes from the
main menu click banking reconcile the first window that opens ups shows us what the beginning balance
should be this file says it was last reconciled on February 28th of 2015 that was our previous video
the video that came before this one reconciled the bank account on this date and the ending balance
which matched the cleared balance was forty six thousand two hundred five dollars and four cents
to fully understand this let's actually change something that causes the cleared balance to
be different let's unclear one of the cleared checks and see what happens let's imagine check
number 24 dated February 16th will be uncleared even though it was already cleared during the
bank reconciliation process the register window is where you can clear and unclear transactions
from the main menu click banking use register then click OK your register window will open
up and make sure that you have one line format checked off this way it's easier to find the
transactions right away I notice transaction number 24 or excuse me check number 24 dated
February 16th is right here for six hundred and eighty five dollars between the payment column
and the deposit column there's a thin column with check marks this column indicates whether an item
has been cleared during the bank reconciliation process or not if it does not have a check mark
it means it's an outstanding check or a deposit in transit we did not place the check marks in this
column QuickBooks automatically placed the check marks in this column during the reconciliation
process when we come down to the check that we want to unclear it's very simple click right on
the check mark that indicates that it's cleared removing it will unclear it until QuickBooks this
item has not cleared the bank when I click on it I get a warning message that we are screwing
up and messing up our previous reconciliation we already know that we're messing up our previous
reconciliation for example purposes so just click yes notice if you only click once you get a star
you have to click again to remove the star and have the field to be completely empty to be able
to completely unclear this check the star will be explained in the next video after this one
but again click twice to remove the check mark and record the new status when we click record
we get another message that says excuse me last month was reconciled perfectly and now you're
messing it up we already know we're messing it up for educational purposes so just click yes
now when we go back to the field that shows the cleared balance we click banking reconcile aha
the beginning balance has changed a moment ago it was forty six thousand two hundred and five
dollars now it's forty six thousand eight hundred ninety dollars and four cents that's because we
uncleared a check and the cleared balance changed this is not the proper beginning balance and if
you look at the bank statement at the beginning of March it will not match this number if you ask
what is the reason why the number doesn't match the answer will almost always be on
the reconciliation discrepancy report from the main menu click reports banking reconciliation
discrepancy okay make sure that you click OK that you're choosing the correct bank account
now here's the discrepancy report the only item is the check that we just uncleared it was the check
on February 16th and it actually shows you the date and time that the transaction was modified
so I am filming this video on August 9th at 3:55 p.m. and that's why it says 1450 423 the thing
that I changed was the cleared status so this report will show exactly what happened and explain
why the beginning balance is now wrong now let's change it back before we get into trouble banking
use register click OK we can easily find check number 24 just click right here in the margin to
put back the check mark click record to update the new cleared status and click yes now let's
see if everything's ok banking reconcile aha the balance has come back to forty six thousand two
hundred and five dollars in fact if we open the banking reconciliation discrepancy report now for
the correct account cash and bank we notice there are now no discrepancies on this report now let's
delete a clear check and see what happens let's delete check number twenty one dated February
10 two ups for ninety-eight dollars and ninety eight cents so from the main menu click banking
use register click ok and we said that this would be check number the check for ninety-eight dollars
and ninety eight cents I believe it was February tenth check number twenty one for ninety eight
dollars and ninety eight cents click here in the line of the check right click on the transaction
and then choose delete check are you sure click OK now when we take a look at the beginning balance
we click banking reconcile aha we notice the beginning balance here in the reconciliation
window has changed the cleared balance has changed and this beginning balance which is our cleared
balance now will not match the beginning balance of the March statement until we fix the situation
if a person wants to see what really happened he or she can click reports banking reconciliation
discrepancy click OK to make sure you're looking at the proper bank account now look it says check
number 21 which was dated February 10th it says it over here the type of change deleted and it was
deleted on August 9th at 3:02 or 301 p.m. and this will stay the reconciliation discrepancy
report until it's fixed so how do you fix the beginning balance for a clear cheque that was
deleted well the first thing you need to do is re-enter the cheque that's probably because you
should not have deleted that cheque in the first place only re-entering the cheque is not going to
fix the problem you then have to clear the cheque in the register window remember if you reenter a
cheque with the same money amount and check number even the same payee QuickBooks cannot assume it
was the cheque that was deleted and QuickBooks will not automatically clear it you would have
to clear it yourself let's take a look from the main menu click banking use register then click
OK the bottom of the register is where we re-enter all the transactions the date is February 10 the
cheque number is cheque number 21 the payee is UPS delivery expense comes up automatically and
then the money amount is 98 dollars and 98 cents push tab to save the field click record notice as
soon as you record the check it jumps all the way up here that's because right now my register is
sorted in date order so I recorded the check long after the other checks and it jumped up into its
proper position and date order as soon as I saved it the problem is not fixed just re-entering the
check will not fix the cleared balance you have to actually clear the check that you just re
entered click in the margin in the right margin in this little field of course you're going to
get a warning message that you're messing up the previous reconciliation QuickBooks does not know
that this is the same check that we deleted that we are now replacing but we know it so click yes
and leave the checkmark there you have to click record again to record the new cleared status
now there are three very important things that you must know after you fix a deleted check that
was previously cleared after you re-enter it and after you recorded as cleared unfortunately the
discrepancy report will still show the problem until after the next bank reconciliation so
even though you saw that we fixed it when you reopen your reconciliation discrepancy report
unfortunately this check will still show up as deleted and this will be here until we do the next
month's bank reconciliation another unfortunate problem regarding this issue is that after you
fix the problem the cleared balance will still be wrong in the first reconciliation window now don't
worry when you go to the second reconciliation window the cleared balance will be correct and
only there you will be able to see that the problem is solved let me show you what I mean when
we click banking reconcile unfortunately you can see that the beginning balance is still wrong even
though we re-entered the deleted check and even though we cleared the deleted check however let's
just enter the number zero into the ending balance field for a moment the only reason I'm doing that
is so that QuickBooks can have something in this field to allow us to go to the second window when
we click continue the second reconciliation window opens up and you can see down here
that the cleared balance is now correct forty six thousand two hundred five dollars you can see up
here the ups check has been replaced and recorded as cleared so again don't be intimidated by the
fact that the deleted check that you re-entered and also cleared is still showing on this report
don't be concerned about the fact that it's still showing up in the first reconciliation window as
long as you put zero in the ending balance it will allow you to continue to the second
window and the second window will confirm that you're starting with the proper cleared balance