how to correct a reconciled transaction

[JoWood]

I incorrectly processed a banking transaction and it has since been reconciled.

Can you please advise, how I correct this.

[Steven_M]

Hi @JoWood 

Generally speaking, we don't recommend that you users do make changes to a transaction that has been reconciled. Doing so will make the transaction unreconciled and thus not the account likely not reconciled.

In saying that, there are commonly three ways to deal with a change to a reconciled transaction:

Option 1:

Undo all the reconciliations including the one that reconciled that transaction. Edit that necessary transaction and then re-reconcile the account again.

Option 2:

Make the change to the transaction. This will commonly put the account out of reconciliation and the transaction will need to be ticked in the next reconciliation or redo of the last reconciliation.

Option 3:

Reverse out the transaction and generate a new transaction. For this process you want to go to Setup>>Preferences>>Security and enable Transactions Can't be Changed They Must be Reversed. Once that has been enabled, navigate to the transaction and select Edit Reverse transaction and record the reversal. You would then record the transaction again. Using this option you would have two extra transactions in your bank account which would be of the same amount and day just on opposite sides - marking these as cleared in your next reconciliation would reconcile those transactions and have no impact on the bank account (they would cancel each other out).