Bank Reconciliation Issue

[AccountsE]

Hi Everyone,

Looking for some guidence for AccountRight - One of the Directors has used the Bank Account for deposit and withdrawl of money that wasn't associated to the business. These transactions need to be discounted however after hidding them in Bank Feeds and making note of why the Bank Rec will be out of balance we can't now reconcille the account due to this.

Is there a way to fix this?? How do we disregard those tranactions to allow MYOB to reconcile??

Thanks in advance for any help you can provide, I appreciate it.

[GDay53 · Accepted solution]

@AccountsE

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

You need to actually enter the transaction not just hide them.

As they were for a Director's private use I would be entering them to a Liability account for Director's Loans.

Use the N-T (not reportable) tax code.

Once they have been entered you will be able to reconcile.

[AccountsE]

Hello,

Thanks for your help I have discussed your solution with the my office collegues however this would mean that the transactions would still show up on our balance sheet - correct?? If so is there a way to avoid this? 

I apologise I still have a lot to learn about MYOB.....

[GDay53]

@AccountsE

That is correct all Directors Loans to and from the company MUST appear on the Balance Sheet.

When a Director uses company funds for private use or gives the company funds, then these transactions are allways treated as loans.