Want to Undo Reconciliation in QuickBooks Online & Desktop?
How to undo reconciliation in Quickbooks Online and Desktop? Like you, there are 29 million users in the US who might be asking the same query. And you’ll be happy to know that it’s easy and quick. Along with that, the manual process works the same for all QuickBooks editions. All you need is a guide that simplifies the process.
There are some specific situations, or in simple words, issues. If you come across any of these, you will have to undo the reconciliation. For instance, you have created a wrong entry or labeled an expense as a transfer. But, don’t be stressed!
Let’s first understand what reconciliation is in QuickBooks and its requirements. Then, we’ll proceed with how to undo bank reconciliation in QuickBooks online/desktop.
What is Reconciliation & Undo Reconciliation in Quickbooks?
In QuickBooks, reconciliation is an important task. It’s a check and balances measure that every user performs once in a while. In this process, the transaction details of your QuickBooks accounts and the relevant bank accounts are matched. As a result, you can verify the accuracy of your accounting records.
This offers two major advantages. First, you don’t need to hire an accountant that saves your expenses. Second, prevent any fraud in your business.
What is Reconciled in QuickBooks?
Two different financial statements are reconciled in QuickBooks:
- Your QuickBooks statements.
- Concerned bank or credit card statement. However, any balance sheet that includes assets, liabilities, and equity can also be reconciled in QB.
Read Also : Setup QuickBooks Bank Feeds
When Do You Need to Undo Reconciliation in Quickbooks?
Since reconciliation in QuickBooks is very easy, it also causes many errors. It’s when you search for how to undo a reconciliation in QuickBooks online.
There are four major reasons– why you may undo reconciliation in Quickbooks online:
When there is something wrong with the transaction. For example, if an incorrect vendor’s name, category, date of transactions, etc. then, you may need to know how to undo reconciliation in Quickbooks Desktop/Online.
Please note that these details may not have an impact on your transaction. But, to get the correct data, you can undo the reconciliation.
The Difference in Transaction Details:
What QuickBooks does when reconciling the transactions is match bank feeds. But, due to misconfigured filters, you may be able to reconcile an uncleared transaction. That means a transaction that doesn’t clear the bank may cause an issue in the future.
Another issue that may occur here is the repetition of the same amount. That means, there is more than one transaction on the book for the same amount. Unfortunately, you checked the wrong one. Hence, the remaining amount that will appear in the coming months will cause you an issue.
Expense Categorized as a Transfer:
In QuickBooks, to save business owners time, it suggests entering a transaction as a transfer. Later labeled it as an “uncategorized asset.” Now the trouble is that once it’s recognized as a transfer, it can’t be reversed except by undoing the reconciliation in QuickBooks.
Last, Settle the Discrepancies in the Account:
In QuickBooks, each transaction that is not cleared will go to a specific account. This is called a “discrepancies account.” The only way to sort this account is to undo and redo reconciliation.
How to Undo Reconciliation in Quickbooks Desktop?
While the process of how to undo reconciliation in Quickbooks Desktop is easy, You can undo it in one go.
Note: You can easily reconcile on the QuickBooks desktop. But, we’ll advise you to clear up the discrepancies in QuickBooks. So you don’t get an error.
Here’s how to undo or delete a reconciliation on the Quickbooks desktop:
- Open the QuickBooks desktop.
- Navigate to the reconciliation now tab.
- Then, select the option “undo last reconciliation.”
How to Undo Reconciliation in QuickBooks Online?
The process of how to undo a reconciliation in QuickBooks online is different. Here, you have to repeat the process for each transaction.
Further, there are two main scenarios when you reconcile QuickBooks in the online version:
Scenario 1: When using QuickBooks online accountant
Here you’ll log in as an accountant to do reconciliation in QuickBooks. Go straight through the steps once you have logged in to your accountant account:
- On your QuickBooks Accountant, navigate to the Gear icon.
- Then, from the drop-down menu, select the Column tools.
- Now, tap on the Reconcile option.
- Now, a page of the reconciled account will open up.
- From here, tap to see the history in the account option.
- It will redirect you to the history through the account page.
- Thus, now, select the account from the drop-down menu.
- Then, select the reporting period.
- It also help you find the reconciliation to undo.
- Then, from the Action column, select the Undo option.
- After that, press the “Yes” button.
- Now, click Undo to confirm, and then the Ok button.
Scenario 2: when using Quickbooks online, other versions
Here’s how to undo bank reconciliation in QuickBooks. Go straight with the steps below:
- Open QuickBooks online in your web browser.
- Navigate to the Gear button and select it.
- Now, go to the Column of your company
- Click on the Charts of Accounts.
- Locate the account of transactions for reconciliation.
- Now, under the Action column, tap on the View register option.
- Look for the transaction you wish to edit.
- Now you’ll see a column stating your reconciled status.
- From here, click on the transaction to see their status.
- If it shows “C,” it means it’s cleared.
- When its shows “R”, it means it’s reconciled.
- If it shows the bank, then it’s neither cleared or reconciled.
- Here, if you see the Bank, undo the reconciled transaction.
- Then, tap on the Save button.
If there are multiple entries with bank status, you need to repeat it for all. Once done, close the register.
Also Read : How to Reconcile In Quickbooks Online
Summing Up the Guide
We hope the guide helped you with how to undo reconciliation in QuickBooks online and on the desktop. Since reconciliation on the desktop is easy and quick, QuickBooks online may need more time. It’ll depend on the number of transactions that you have to reconcile. Don’t puzzle! Use this guide and recycle your bank accounts easily. Furthermore, if you feel stuck at any step or need any quickbooks support, feel free to contact us. Our experts will assist you with your queries 24×7.