by Intuit•71• Updated 2 months ago
At the end of a reconciliation,you may see a small amount left over. This is known as a discrepancy. After reviewing everything for accuracy, you'll know if this discrepancy is a valid error.
When there's only a small amount left over, QuickBooks lets you create an adjusting entry.This forces your accounts to balance so you can finish your reconciliation. Consider this as an option whenyou can't find the source of the discrepancy and there's only a small difference.
Important: Adjusting entries are powerful. You must be absolutely sure the amount is small and an error. Adjusting entries should be a last resort, as making them for large discrepancies can cause accounting issues. We recommend reaching out to your accountant if you're unsure.
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Enter an adjusting entry
- Go to Transactions, thenReconcile (Take me there).
- Reconcile your account.
- After you've reviewed everything for errors, select Start reconciling.
- SelectFinish now from the dropdown.
- Select Done.
You'll see a message explaining that your account isn't balanced. Select theAdd adjusting entry link. This creates an expense transaction if the difference is negative, or an income transaction if the difference is positive. It forces the account to balance.
Ifyou need to locate an adjusting entry later on, here'show to find past reconciliation adjustments.
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