It’s not uncommon for someone to realize they categorized a reconciled transaction incorrectly.
Don’t worry, this is not a big deal, and it’s an easy fix. Let me show you what to do.
I’ll also show you that it’s okay to split a reconciled transaction and why.
Quick Instructions:
- Open the transaction
- Change the Category/Account
- Click Save and close
- Click Yes on the pop-up
Keep reading for a complete walkthrough with screenshots:
Changing a Reconciled Transactions Category
I have a checking account that’s reconciled through 5/15/2024.
There’s a reconciled deposit in the category of Uncategorized income. That’s not right. I need to fix it.
To change the category, click the transaction, then click Edit to open the transaction.
From here, click the drop-down in the ACCOUNT column and select a different category.
When you’re ready, click Save and close in the lower right corner.
A pop-up appears warning you that “The transaction you are editing has been reconciled. Saving your changes could put you out of balance…”
This sounds scary, but it’s nothing to worry about. The dollar amount of the transaction has not changed, so this will not put you out of balance. Click Yes to continue.
Checking Your Reconciliation
From the Bank Register, click the Reconcile button in the upper right corner.
The beginning balance hasn’t changed. There are no error messages. Everything’s good.
Splitting a Reconciled Transaction
What if you realize a reconciled expense needs to be split? This is not a problem either.
I have an expense that’s categorized as Bank Charges, but this is incorrect.
For this transaction, I’m changing the Category from Bank Charges to Rent or Lease and adding a new line for Utilities.
Here’s why this isn’t a big deal: The original total for the transaction is $900. I’ve split this transaction with $800 going to Rent or Lease and $100 going to Utilities, which still adds up to $900.
When you save the transaction, you’ll get the warning pop-up mentioned above. Again, it’s not a problem, and you can click Yes because the transaction total hasn’t changed.
When You Know You Have a Problem
If you change the total of a reconciled transaction, your beginning balance will be off. You’ll know because you’ll see an error message the next time you reconcile that account.
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