I made an entry to my bank account which was dated in a closed bank reconciliation period. How do I fix it?
One should never make an entry using the Bank Account (Cash) which is dated in a closed Bank Reconciliation period. Doing so will change the balances and make the closed Bank Reconciliation (and subsequent Reconciliations) out of balance.
If you have done so, to fix this issue, you must create a reversing entry on the same date as the orignal entry, then recreate the journal entry on a date in the Open Bank Reconciliation Period.
Here are the steps:
1. If you don't have the original journal report for the entry, find the incorrectly dated entry in Journal Reports: Go to General Ledger, Other Reports, Journal Reports.
2. Hopefully you know the Journal Type which was used for the entry you must reverse. In the Print Journal drop-down field, select the Journal Type. Often the type will be CD for Cash Disbursement (money going out of the Cash Account) or CR for Cash Receipts (money coming into the Cash Account). It may have been a GJ entry, however. So if you do not find the transaction under CD or CR, try GJ. Or, in the case of voiding a check in a closed period, the transaction type would be AP. In the case of an Adjusting Entry made through a Bank Reconciliation, the type would be CB.
3. Enter either the period in which the entry was made, or if you know the exact date, enter the exact date.
4. Find the entry on the report. Look for both sides of the entry and note the accounts.
Here is an example of a CR entry made on 01/09/2017. Since the Bank Reconciliation for January had already been closed, this transaction must be reversed in January and re-entered in the current open Bank Reconciliation Period (the first month for which the Bank Reconciliation has not yet been closed). In this case it is March.
5. Now that you have a complete picture of the transaction, you must go into General Ledger, Individual Transactions and create and entry which reverses this transaction exactly. For the reversing entry, no matter what the original entry journal type is, use a GJ type.
Since the entry we are now reversing was a credit (-) to the 430-00 account, we reverse that with a debit (+) to the 430-00 account. Use the same deposit slip number, date, and amount as well a102s Journal Type. You will get two pop-ups that tells you that you have already used the deposit slip number. It's okay and encouraged to re-use the deposit slip number in this case.
Once you have completed this reversing entry, you must post it. NOTE: before posting, you must open the month of this transaction date if it was closed. After posting the reversing entry, you may re-close the month.
6. Now that the reversing transaction has been created and posted, you must re-enter the original transaction, but this time dated as of the first open Bank Reconciliation Period. In this example, it will be March. You must use the very first open Bank Reconciliation Period. So, even if it's June, since March Bank Reconciliation has not yet been done, we will use the date of March 1. Follow the same steps as above except the debits and credits are reversed and the date is March.
Now, the correct transaction has been posted to the General Ledger on the correct dates.