Reconciling Old & New Account

[antiochmbc]

We had to recently close our original general funds checking account due to fraud and open a new one. I created a new account in chart of accounts and did a journal entry to transfer the balance from the original account to the new one. I have reconciled the March bank statement for the original account and the balance is 0, however there were two checks that did not clear for the month of March. On the bank statement for the new account, the balance transfer is showing, along with those two outstanding checks that have now cleared. When I go to reconcile in Powerchurch, the only thing that is showing is my deposit since I did the journal entry to transfer. What should I do to show these two checks that have now cleared under the new account? I thought about a journal entry but I was afraid of duplication. Appreciate your help...

[NeilZ]

We had to recently close our original general funds checking account due to fraud and open a new one. I created a new account in chart of accounts and did a journal entry to transfer the balance from the original account to the new one. I have reconciled the March bank statement for the original account and the balance is 0, however there were two checks that did not clear for the month of March. On the bank statement for the new account, the balance transfer is showing, along with those two outstanding checks that have now cleared. When I go to reconcile in Powerchurch, the only thing that is showing is my deposit since I did the journal entry to transfer. What should I do to show these two checks that have now cleared under the new account? I thought about a journal entry but I was afraid of duplication. Appreciate your help...

When you created the new account, and you moved the funds, I take it that the balance took into account these two checks, that is, the balance in Powerchurch reflected those two written checks. I'm going to assume that when you reconcile the bank statement, that the bank statement end balance will reflect the balance in Powerchurch. It should, because they were accounted locally in the old account.

What you can do is this if you want. First, backup the accounting database using the Powerchurch backup facility. On ALL the following transactions include in the note area of each transaction the reason you are doing these transactions.

Then go into Accounts Payable, find the two checks, VOID them, and REISSUE using the same date, check number etc. You do NOT want to reprint.

This will create 4 manual checks, 2 that void the originals, and 2 that replace them. Find the REPLACEMENT manual checks and CHANGE the Bank (Checking) account to the new account number. POST these to Funds Accounting.

This will return funds to the original checking account, you will then have to create a transfer transaction to move the funds from the one account to the other. You'll have to reconcile the original account over, but in V14 that's a very easy step.

The two cleared checks in the new account will then be seen in the reconciliation of the new account.

If this doesn't look right after all this, restore the backup you made.

Does this help??

[antiochmbc]

Everything worked just fine, thanks so much for your prompt assistance!!

[NeilZ]

Everything worked just fine, thanks so much for your prompt assistance!!

Glad to hear it fixed the issue.