Introduction
When performing an account reconciliation, the GL Account may not balance if a transaction dated in the "Last Year" period has been moved from GL Transactions into GL Transaction History with a Fiscal Year End Close. This removal makes the transaction unavailable for reconciliation.
Steps to Resolve
1. Recreate the Transaction in the GL Account
- For a cheque, create a journal entry dated the first day of "Last Year" (earliest possible date).
- Debit the amount to the account being reconciled.
- Credit the amount to a clearing account (any expense account will work).
- This step returns the amount to the account so it can be reconciled.
2. Remove the Item from the Reconciliation List
- Start a reconciliation without an opening or closing amount.
- Check the item that was created and post the reconciliation.
- Spire 3.10 and higher: Requires a statement date for bank GL accounts.
- Use a statement date prior to the statement date you are reconciling.
- Example: If reconciling January 31, use January 30 for this entry.
3. Adjust the GL Account
- Create another journal entry for the same date.
- Credit the account being reconciled with the same amount.
- Debit the same clearing account used earlier.
- This removes the amount from the account being reconciled, and the stale-dated transaction is now back in the account for reconciliation when it clears.
4. If the Amount Will Never Clear
- Perform a normal GL journal entry to write off the amount.
- Check both items in the next reconciliation to complete the process.
Important Notes
- If the amount was a debit/deposit to the account, reverse the debits and credits.
- Spire 3.5 and later: When performing Year-End Close, Spire will alert users if unreconciled GL Transactions will be moved to GL History, providing the opportunity to move them to a more current period by reversing the old transaction and re-entering it with a more current date.