Calculated Balance in the Reconcile window is wrong

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asajay
Posts: 62
Joined: Thu Mar 01, 2007 7:25 pm

Calculated Balance in the Reconcile window is wrong

Post by asajay »

I'm working to reconcile a larger number of accounts that haven't been properly taken care of. I'm able to fix all the transactions in an account to be correct, so the running total balance shows correctly in the account window.

However, when I go to reconcile new statements using the Reconcile feature of MYM12, the "Prior" statement balance is way off, and the Calculated Balance is way off. If I try to change the prior statement balance, MYM wants to create a "Statement Adjustment" which will then throw off the real actual balance in the account. If I decline to make the adjustment, it lets me check off items but then will not let me save unless I let it make the Statement Adjustment Transaction. Which again, if I do, then throws off the actual balance in the account.

Example.
The account has less than $25,000 in it, and less than that in the amount of transactions for the year. The Reconcile feature says the last prior statement was over $60,000 (which isn't true), and a "Calculated" balance over $55,000.

If I let MYM create a Statement Adjustment," it adds a transaction for the differential and then throws off the actual account balance.

If I un-reconcile (unmark) all deposit transactions (a little trick I found), the difference is still too great to overcome.

The problem here is that the owner of this data has not been doing things correctly in their accounts. Entering data into the wrong accounts, entering wrong numbers, entering deposits for withdrawals and vice-verse. And they've been using the Statement Adjust feature like it was candy.

The unfortunate outcome of all this are accounts that don't match the bank statements. Sometimes to the tune of hundreds of thousands of dollars (when much less than that is actual).

I need a way to -fix- the reconcile engine prior month balance, and I've not found a way to do it. Just this one fix, would help me keep the data we need without having to rebuild the entire set in a fresh install.

Any help would be appreciated.
Thank you,
Asa Jay
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asajay
Posts: 62
Joined: Thu Mar 01, 2007 7:25 pm

Re: Calculated Balance in the Reconcile window is wrong

Post by asajay »

So I pretty much answered my own question through trial and error. Although I found a Statement Adjustment transaction would throw off the real account balance, it could be fixed by:
  • - Entering a proper Prior Month's statement amount
    - Allowing MYM to create the Statement Adjustment
    - Finish reconciling [F10]
    - Summarily unchecking (unmarking) the transaction as reconciled (using [Alt]+[M])
    - Perform the next months reconciliation which should show the proper Prior Month amount
    - Finish the next months reconciliation, leaving the Statement Adjustment transaction unreconciled
    - Remove the Statement Adjustment transaction
    - Check that the running balance is now correct
    - Check that the next month's reconciliation is using the proper Prior Month balance
Apparently the issue I was running into was trying to remove the Statement Adjustment transaction too soon. Once I figured out this trick, all was well. I finally managed to straighten out all the accounts of this user, close out the past year and everything is now nice and tidy for 2020.

You may be wondering how it's possible to even get into this situation. It's rather easy. If the user accidentally enters an incorrect statement balance and finishes reconciling, the next reconciliation will start with an incorrect prior month balance. This continues to exacerbate the more the user continues entering incorrect information and failing to "look" for why the balances eventually get so far off.

Asa Jay

-- comedy 101: I once found a Statement Adjustment for over one million dollars, because, for some reason, an entry for over $900k was entered, somehow erroneously and probably without the user even knowing, or remembering they did it.
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