Resolve Sage 50 Bank Reconciliation Issues: Unresolved Amount or Reconciliation Discrepancy

Bank reconciliation statements are financial papers that describe your bank account activity as well as internally recorded actions, show that the two records are consistent, and are used to reconcile your bank accounts. During the tax preparation process, bank reconciliation errors in Sage 50 can happen. When you reconcile, you are confirming that the transactions in Accounting match the ones on your bank statement.

If you have found missing entries and still find “Bank reconciliation shows a discrepancy“, or “Bank reconciliation shows an unresolved amount” in the bank reconciliation journals then you need to verify the accounts appearing in the bank statement with the opening balance statement. If it is not zero at this stage, you should check Sage 50 bank reconciliation fixing techniques. Let’s dive deep into Sage 50 bank reconciliation discrepancy or unresolved amount issues and their root causes and resolve them.

The exact error message is shown…

Sage 50 Error: “Bank reconciliation shows a discrepancy” or “an unresolved amount”

Reasons for Unresolved Amount in Sage 50 Reconciliation

Several reconciliation modifications, including journal entries and additional, amended, or deleted reconciled transactions, may be the cause of the mismatch. The main causes are: A reconciliation arrangement or previously reconciled transactions have been changed, eliminated, or added. As a result, you had problems reconciling the Sage 50 bank statement.

• The statement’s end date is incorrect.
• The statement’s end balance is incorrect.
• Some transactions have the wrong date.
• The starting balance does not match the opening balance on your bank statement.
• A previous reconciliation was saved with a difference.
• A previous reconciliation was saved with the incorrect date.

Similar Topic: How to Undo Last Bank Reconciliation in Sage 50

Resolution Steps for Sage 50 Bank Reconciliation Discrepancy

The measures you must take if you have unresolved discrepancies or amount concerns in Sage 50 are as follows:

Resolution 1: Verify the causes of the discrepancy

• Verify the opening and closing balances as well as the statement’s start and end dates.
• Verify the transactions’ dates.
• The system has a record of every transaction.
• Make sure that the transaction on the bank statement has been cleared.
• Verify the bank account’s book balance that is connected to Sage 50.
• The total of all unchecked items that show up in the Reconciliation window equals the outstanding amount.
• Check to see if the profits and fees you added for the bank in the costs and revenue choices were added appropriately.
• Resetting the reconciliation in Sage 50 is advised after it has been confirmed that they don’t.

Resolution 2: If a discrepancy is found but a bank reconciliation does not report an error

• Here is a formula to determine the discrepancy:
• Opening book balance minus (opening outstanding plus statement opening balance) equals discrepancy.
• You must use the reconciliation’s remaining outstanding balance from the prior year to determine the opening outstanding values.
• The quantity of past outstanding that you have added to the start date is your “opening outstanding” if you are undertaking reconciliation for the first time.
• The steps to determine the opening book balance value are listed below:
  • The bank reconciliation cannot move on to the next phase without resolving the mismatch.
  • Perform the comparisons below to determine if there is data corruption in the bank reconciliation:
• Look up the Opening Book Balance, which is the Statement Opening Balance plus the Opening Outstanding.
• If they are not equal, a difference known as a discrepancy amount is displayed.
• If they match yet there is still a disparity, the bank reconciliation table’s data is corrupt. You must restart the bank reconciliation to fix this.

If you are starting a reconciliation for the first time, your “opening outstanding” is the amount of prior outstanding that you have added to the start date.

The following are the steps to calculate the opening book balance value

Without correcting the discrepancy, the bank reconciliation cannot proceed to the following stage:

• To check for data corruption in the bank reconciliation, make the comparisons listed below:
• Look up the Opening Book Balance, which combines the Opening Outstanding with the Statement Opening Balance.
• A difference known as a discrepancy amount is shown if they are not equal.
• If they are identical yet there is still a discrepancy, the data in the bank reconciliation table is flawed. To correct this, you must restart the bank reconciliation.

Sage 50 Reconcile for Negative Balance Amount

The start date of the statement and many missing debit entries for earlier start dates are wrong on the bank reconciliation window.

Sage 50: What to Do if the discrepancy is positive

Its key contributing elements may include:

• Too many debit entries were identified before the commencement date, which resulted in an excessively high opening book balance, and the bank reconciliation window’s start date was set incorrectly.
• When a debit check’s outstanding is insufficient due to a too-low opening outstanding. It may be the consequence of incorrectly posted check posting dates or duplicate entries. Among other things, it might happen if there are a lot of overdue credit checks.
• Too low an opening balance on the statement: This is caused by human error on the bank’s end. Duplicate entries, entering the incorrect sum in the bank reconciliation box, or an incorrect account balance are additional examples of this.

Resolution 3: How Should I Approach a Sage 50 Unresolved Reconciliation Issue?

Unresolved is typically displayed on screens as either negative or positive.

The following formula must be solved:

• Unresolved equals ending book balance minus (statement end balance plus ending outstanding).
• The amount shown on the bank reconciliation window represents the outstanding balance.
• The following factors might lead to negative unresolved situations:

Maximum Book Balance:

It is due to several debit entries, missing credits when modified transactions occur, and incorrect end dates in reconciliation, among other things.

Too little ending outstanding: Incorrect statement end date, missing outstanding, or problems with outstanding accounts.

The statement’s final balance is too low:

• The incorrect end date entered in the statement’s end date field, human error, and bank errors are to blame.
• You must come up with good justifications.
• Once you identify the proper reason, make the necessary modifications.
• Restart the reconciliation if problems continue.

When resolved, is that positive?

• Start by looking for the reasons.
• The following causes contribute to this error:
• Find the true cause, then make the necessary modifications.

Read More: Resolve Sage 50 Balance Sheet Doesn’t Balance

Why Should I Reset Sage 50’s Bank Reconciliation?

There may be several reasons why you should reset the bank reconciliation. Some of them include:

• Account reconciliation for the previous month has already been posted, and a variance amount has been identified.
• There is a balance that has not been settled, even though the ending balance and the open balance are equal and nothing is cleared.
• Because of certain faulty data in the bank reconciliation database, Sage 50 is reading the incorrect numbers.
• Sage 50 is unable to undo bank reconciliations for a certain month.

Read More: Fix Sage 50 Not Showing All Transactions

Resetting the Sage 50 Bank Reconciliation

If you have a Sage 50 Cloud subscription and are running Sage 50 older or newer, understand how to reverse bank reconciliations to reverse a single bank reconciliation rather than resetting all bank reconciliations linked with an account.

Step 1: Create a backup

Make a backup of your data since you will permanently lose all previously completed bank reconciliation information.

Step 2: Compile a list of all outstanding transactions

• Navigate to Reports, Banking, and Account Reconciliation Report. 
• Select the appropriate bank account, then the appropriate Start Date and Finish Date to view the most recently successfully reconciled period.
• Select the ‘ Report By Statement’ End Date.
• Then select the ‘ Report By Statement’ Option Stop Date
• To view the report, click OK.
• To save this report, choose Print or Open in Excel.

Step 3: Clear the bank reconciliation in Sage 50

• Double-click on the Chart of Accounts. 
•  Then double-click on your bank account.
• Then select the ‘Reconciliation & Deposits’ tab.
•  Save Transactions for Account Reconciliation is marked; uncheck it.
•  By selecting “Save and close,” you can close the account.
•  To delete all reconciliation information, click OK.

Step 4: Reactivate the bank account for the bank reconciliation

• Click once or twice on your bank account
• The Reconciliation & Deposits tab should be selected.
• Mark the box next to Save Transactions for Account Reconciliation with a checkmark.
• At the bottom of the page, the Set Up button is there.
• To set up revenue accounts for interest income, exchange gain, error gain, and adjustments, click on it.
• Additionally, you may create spending accounts for bank fees, NSF fees, and interest costs.
• You can close the account By selecting “Save and close.”
• Click on the X in the corner of the accounts window to close it
• Once you’ve added all the outstanding transactions, click OK.
• Leave the Outstanding Transactions list blank and click OK if you don’t have any outstanding transactions to bring in.
• Now you can easily do a new bank account reconciliation.

Similar Topic: Undo the Last Bank Reconciliation in Sage 50

Setup Sage 50 Bank Reconciliation

• Double-click on the Account Reconciliation journal to start.
• Next, decide which bank account you want to set up.  Then, enter the statement’s start and end dates as well as the reconciliation date. 
• Add the Statement opening and closing balances from the financial institution’s report to the statement.
• Select the button labeled “ADD Prior Outstanding” after listing all the open issues that date back to the start date.
• The question “Do you want to save the changes?” appears in a pop-up window. Next, click on OK.
• Next, make sure that ‘Show Resolved Transaction On or after’ is selected. 
• Select the ‘Resolved Transaction’ option.
• To move it to Outstanding Transactions, select Add.
• Click on Insert Statement if any outstanding transactions aren’t listed in the list.
• Press the OK button in the end.

Read More: How to Enter Opening Balances in Sage 50

How Important is Bank Reconciliation?

Comparing your records to the bank’s records is known as bank reconciliation. You can find any unexpected transactions that might be the result of fraud or accounting mistakes by using a monthly reconciliation. 

Users performed the initial balance adjustment to reconcile and then discovered they should have started from the next month. To deal with this situation, Sage enables you to investigate the Sage 50 Clear bank reconciliation method, which is quite similar to Undo Reconciliation, and clear the reconciliation account to reset the desired value. The difference between the two procedures in Sage 50 is that while resetting reconciliation, you must take a significant number of transactions. 

Conclusion

This article contains everything you need to know about Sage 50 reconciliation issues and solutions. Connect with our team if you run into any problems while executing these steps or if you require any more help with the reconciliation process. This article acts as a one-stop shop for all Sage reconcile-related issues, including reconciling statements. reconciliatory pharmacies, etc. If you still face any problems, connect to the Sage 50 experts via chat, call 1800-892-1352, or email.

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