How to resolve the issue when your credit card reconciliation won't balance
- Make sure the Statement Date is correct. The Statement Date determines which transactions display on the Credit Card Reconciliation and if it is not correct, some pertinent transactions may not display.
- Ensure you have entered all credit card transactions including credits, refunds, and service charges.
- Ensure you have entered the correct Statement Balance. The statement balance can be updated on the reconciliation page.
- Check your transactions to ensure they do not debit and credit the liability account. A credit card transaction should credit the liability account and debit an expense account.
- If you are on an accrual basis, when you enter the bill to pay the credit card company, the bill date must be later than the statement date and on or before the payment date.
- Date the bill at least one day after the statement date.
- If you have already created the bill and given it a date prior to or on the statement date, you must correct the date using one of the options below:
Note: If you used the statement date as the bill date and no charges were recorded on that date you could change the reconciliation date to one day prior and process. To change the date on a reconciliation the reconciliation would need to be deleted and reprocessed. If you do this, you will not need to correct the date on the bill.
How to correct the date on a credit card bill
If the bill has been paid
- Do not void the check.
- If you have the ability to delete the check, delete the check. Then, edit the bill to one day beyond the statement date and reassign the check to the bill.
If the bill has not been paid and there is an edit button at the bottom of the bill, edit the bill date to one day beyond the statement date.
To correct the bill date if you do not have the ability to delete the check or edit the bill:
- Create a negative bill on the same date as the original bill.
- Create a new bill dated one day beyond the statement date.
- Pay the two bills together on the same date as the new bill. This will produce a $0.00 check. Note: be sure that the vendor is not marked to print one check per bill. If your check number that actually paid the bill was 1123 you may want to use check number 1123CORR. This will allow you to tie the correction to the original check and will not disrupt the check sequence.
When you reconcile the next bank statement you will see a negative amount and positive amount for the correction mark both the negative and positive correction.