Solution Properties
Solution ID:
200427112208491
Last Modified Date:
Tue Feb 28 08:54:55 UTC 2023
Taxonomy Path:
Case category//How do I...//banking/reconciliation
Author:
[email protected]
How do I correct a bank opening balance?
Description

There are two main reasons why you may need to correct a bank opening balance:

  • If a bank opening balance is entered incorrectly, you must reverse this before you can post the correct opening balance.
  • If unreconciled items are incorrectly included in the lump sum reconciled opening balance, you must correct this in order for these transactions to appear on the Bank Reconciliation window.

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Cause
Resolution

Reverse an incorrect opening balance

You can reverse a reconciled opening balance by entering the opposite transaction to the original opening balance, using the same reference and date.

  1. Click Bank accounts and select the required account and click New/edit or Edit.
  2. Click the Current Balance option and enter the Ref and Date of the original opening balance, then:
    • If the original entry was a receipt (debit), enter the value into the Payment box.
    • If the original entry was a payment (credit), enter the value into the Receipt box.
  3. Click Save then click Save and click Close.

You can now enter the correct opening balance.

EXAMPLE: 

You enter an opening balance of £/€1000 as a receipt, using a date of 31/01/15.

BankDateRefDetailsPaymentReceipt
120031/01/15O/BalOpening Balance
1000.00


This opening balance should have been entered on 01/02/15 with a value of £/€900.

The first transaction reverses the value of the original opening balance, using the same date, reference and details:

BankDateRefDetailsPaymentReceipt
120031/01/15O/BalOpening Balance1000.00


The second transaction posts the correct opening balance value on the required date:

BankDaterefDetailsPaymentReceipt
120001/02/15O/BalOpening Balance
900.00

Separate the unreconciled items from the opening balance

Step 1 - Reverse the value of the uncleared items included in the opening balance

  1. Click Bank accounts and select required account the click New/edit or Edit and click the Current Balance option.
  2. Enter the Ref and Date of the original opening balance then in Receipt enter the value of any uncleared payments then click Save.
  3. Click the Current Balance option again and enter the Ref and Date of the original opening balance then in Payment enter the value of any uncleared receipts.

    Do not enter both payments and receipts on the Opening Balance Setup window at the same time. If you complete both the Receipt and Payment boxes, when you click Save only the value in the Payment box posts.

  4. Click Save then click Close.

Step 2 - Enter the uncleared items as bank payments or receipts

Bank receipts
  1. Click Bank accounts and select the required bank account and click Bank receipt or Bank Receipts.
  2. Enter the required Date and Ref and for N/C select the Suspense Account nominal code, 9998 by default.
  3. Enter the required Details and enter the value in the Net column and for Tax select T9.

    This assumes the Standard VAT Scheme is in use, for VAT Cash Accounting use the correct net and VAT split with the correct tax code.

  4. Repeat steps 2 and 3 for each individual receipt then click Save and click Close.
Bank payments
  1. Click Bank accounts and select the required bank account and click Bank payment or Bank Payments.
  2. Enter the required Date and Ref and select the Suspense Account nominal code, 9998 by default.
  3. Enter the required Details and enter the value in the Net column and for Tax select T9.

    This assumes the Standard VAT Scheme is in use, for VAT Cash Accounting use the correct net and VAT split with the correct tax code.

  4. Repeat steps 2 and 3 for each individual payment then click Save and click Close.


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