Bank Reconciliation

[FBCro]

Being relatively new to PowerChurch, I'm trying to clear up an item from 2015. The Bank Reconciliation has shown $750 Outstanding Deposits and additions since 2015. The previous bookkeeper made several entries and reversals for this item in September 2015. I have no idea how she ended up with the current amount. It is labeled Bank Memo Reversal Taxes. To try to clear this up I changed the month to December 2016 as it was open and made an entry crediting bank account and debiting the Payroll items. I was then able to clear the offsetting items in Bank Reconciliation. My problem is that while it reduced the bank account it also gave me Negative items in Liabilities Payroll. Can I clear this up by staying in December 2016 and entering a transaction Crediting each Payroll liability account and Debiting the Net Assets our Account 3001 by the total $750. Would this work? Thanks for your help.

[NeilZ]

Being relatively new to PowerChurch, I'm trying to clear up an item from 2015. The Bank Reconciliation has shown $750 Outstanding Deposits and additions since 2015. The previous bookkeeper made several entries and reversals for this item in September 2015. I have no idea how she ended up with the current amount. It is labeled Bank Memo Reversal Taxes. To try to clear this up I changed the month to December 2016 as it was open and made an entry crediting bank account and debiting the Payroll items. I was then able to clear the offsetting items in Bank Reconciliation. My problem is that while it reduced the bank account it also gave me Negative items in Liabilities Payroll. Can I clear this up by staying in December 2016 and entering a transaction Crediting each Payroll liability account and Debiting the Net Assets our Account 3001 by the total $750. Would this work? Thanks for your help.

I hope you did a backup before you did all that, as you may need to go back to the beginning.

So let me reiterate what you said. You have an extra amount shown in the Bank Reconciliation than is actually in the bank. If you do not clear it, the Difference shows 0.00. Do I have that right ??

Could you explain what the original transactions looked like? That would allow for better advice.

[FBCro]

I did do a backup and have returned everything back to square one. We have had this $750 in Outstanding Deposits and Additions since 2015. If you do not clear it the difference is 0. I have researched 2015 journals and found that in September 2015 a new pastor arrived the bookkeeper entered the transaction crediting bank account and debiting the Payroll accounts. The same day she did a reversal. The same day she reentered crediting bank and debiting the Payroll accounts. The same day she did a reversal. That's 4 transactions which should have cancelled out. I have checked rest of 2015 and found no other transactions regarding this. I can't figure out how this happened unless at some time an adjustment was made of some kind. I'm not sure how to correct. Someone I know that uses powerchurch suggested that I make an entry using December 2016 that is reverse of the item in Deposits. When this caused the payroll items to appear as negative figures, they said to make another entry in December 2016 to credit each payroll item and debit the full $750 in Net Assets our Account 3001. I know that without finding the cause it makes it difficult to find the cure. Do you have any ideas. Apparently no one in the past knew how to fix it so they just left it that way. Thanks

[NeilZ]

I did do a backup and have returned everything back to square one. We have had this $750 in Outstanding Deposits and Additions since 2015. If you do not clear it the difference is 0. I have researched 2015 journals and found that in September 2015 a new pastor arrived the bookkeeper entered the transaction crediting bank account and debiting the Payroll accounts. The same day she did a reversal. The same day she reentered crediting bank and debiting the Payroll accounts. The same day she did a reversal. That's 4 transactions which should have cancelled out. I have checked rest of 2015 and found no other transactions regarding this. I can't figure out how this happened unless at some time an adjustment was made of some kind. I'm not sure how to correct. Someone I know that uses powerchurch suggested that I make an entry using December 2016 that is reverse of the item in Deposits. When this caused the payroll items to appear as negative figures, they said to make another entry in December 2016 to credit each payroll item and debit the full $750 in Net Assets our Account 3001. I know that without finding the cause it makes it difficult to find the cure. Do you have any ideas. Apparently no one in the past knew how to fix it so they just left it that way. Thanks

That is strange.

You're right, the four transactions you mentioned cancel each other out, as long as the amounts on the reversals stayed the same. This extra $750 showing in checking in Powerchurch came from somewhere else. Have you done a Trial Balance report against that accounting fund from Jan thru April? The bottom line totals should all be 0.00. If not, then you need to do some additional research.

Have you run a standard Balance Sheet report?? The Asset amount should equal the Liability amount. If the asset amount is higher by exactly $750, then this may be a case for an Out of Balance transaction. (OOB).

Let me know.

[FBCro]

I only work part time at the Church and will be back there tomorrow and will follow your suggestions and see what I find. Thanks