When reconciling, you have the option to make an adjusting entry if the difference isn't zero when you are finished. This is helpful when the amount isn't off by very much. Taking hours to find amounts that are off by a few pennies doesn't make much sense.
: Adjusting entries should be made only as a last resort for small amounts. Making adjusting entries for substantial amounts may create serious issues in the future. We recommend you ask your Accountant before making any adjustments.
Enter an adjusting entry
- Select Finish Now on the Reconcile screen.
- Confirm the Adjustment date.
- Select Add adjustment and finish.
- Select Done.
If you need to locate an adjustment at a later time, see How do I find previous reconciliation adjustments?
How do adjusting entries impact accounts
- If the difference after reconciling is a negative number
- A cheque transaction (without a cheque number) will be created that reduces your bank account by that amount, and then also decreases your Opening Balance Equity account.
- This affected your Balance Sheet, but not your Profit & Loss.
- If the difference after reconciling is a Positive number
- A deposit transaction will be created that increases your bank account by that amount, and then also increases your Opening Balance Equity account.
- This will affect your Balance Sheet, but not your Profit & Loss.
For more information about what to do if your reconciliation is wrong, see troubleshooting your reconcile