How to Fix Sage 50 Bank Reconciliation Discrepancy Error

To verify the accuracy of accounts, every organization uses the bank reconciliation feature in accounting software. This process reduces the gap between statements and bank transactions. After transactions are matched, the difference between them should be zero. When the difference is not zero, then it is also known as a discrepancy. If it is found not to be zero, then you should look for ways to determine the unresolved Sage 50 bank reconciliation discrepancy.

Complete troubleshooting solutions are explained in this final blog. Let’s explore in-depth the problems with Sage 50 reconciliation discrepancies and their important causes. Get detailed information on how to initiate Sage 50 Bank Reconciliation.

Error Name	Sage 50 Bank Reconciliation Discrepancy Error
Applicable for Product	Sage 50, Sage 50 Accounts, Sage Line 50, Sage 50 Premium, Sage 50 Canada
Error Description	There is a mismatch in the Sage 50 Bank transaction accounts.
Errors Messages	Sage 50 Discrepancy, Adjustment Required, Crashes, Slow, Unresolved Amount
Reports	Bank Statement, Bank Statement PDF, Retrospective Bank Reconciliation

What is Sage 50 Bank Reconciliation Discrepancy?

Sage 50 Reconciliation Discrepancy Unresolved is a program developed to help accountants find and fix several bank reconciliation errors in Sage that may occur during tax preparation. Bank reconciliation statements are financial documents that summarize your bank account activity, as well as internally recorded activities, demonstrating that both records are consistent with each other. They are used to reconcile your bank accounts.

When the bank account balance in the books of account of an entity is matched with the amount reported by the financial institution in the most recent bank statement, it is known as bank reconciliation as per accounting standards. The existence of a difference between the two datasets should be detected as soon as possible, and, if necessary, corrected.

What are the most important aspects of Sage 50 Bank Reconciliation Discrepancy?

1. Bank Reconciliation aims to determine whether your account records and bank details agree.
2. Once a discrepancy and an unresolved amount have been recognized, the necessary time must be spent determining their origin.
3. There are no bank reconciliation analysis services or fast fixes available through the Sage 50 Consultant.
4. Sage can’t decide which entries should be present in your company’s books or which transactions should be reported in your bank statement.

What are the Possible Reasons that Lead to Sage 50 Bank Reconciliation Discrepancy?

The discrepancy may occur due to various reconciliation adjustments, such as journal entries, and added, modified, or deleted reconciled transactions. The primary reasons are that past reconciled transactions have been added, deleted, or altered, or reconciliation arrangements have been made. Hence, you have faced issues while reconciling the Sage 50 Bank Statement.

Steps to Reset Sage 50 Reconciliation Discrepancy

If you haven’t switched to Sage 50 2024 or newer and have a Sage 50 Cloud subscription, read this article on how to reverse a single bank reconciliation instead of resetting all bank reconciliations associated with an account.

For resetting the bank reconciliation in Sage 50, the steps are as follows:

Step 1: Make a backup

To back up your data, simply click the “Back Up” button. Your bank reconciliation data will then be automatically saved to your account and can be easily recovered for future use.

Step 2: Start by generating a list of outstanding transactions

1. Go to Reports> Banking> Account Reconciliation Report
2. Use Report type: Summary report with Outstanding transaction detail
3. Select the proper bank account> then select the proper Start Date and Finish Date to display the latest successfully reconciled period
4. Select Report By Statement End Date
5. Click OK to view the report
6. Select Print or Open in Excel to save this report

Step 3: Clear the Sage 50 bank reconciliation

1. To open the Chart of Accounts, open your Company from the left pane. You’ll want to double-click on the Chart of Accounts to view it in Enhanced View.
2. To double-click on your bank account, right-click and select open.
3. Choose the Reconciliation & Deposits tab
4. Uncheck the box beside “Save Transactions for Account Reconciliation.”
5. Once you are done using your account, click the green “Save and close” button.
6. Select the OK option to remove reconciliations

Step 4: Make sure the bank account is re-enabled from the bank reconciliation

1. Double-click on your bank account
2. Select the Reconciliation & Deposits tab
3. Put a check mark in the box beside Save Transactions for Account Reconciliation.
4. The Set Up button will appear at the bottom of the page.
5. You can click on it and set up revenue accounts for Interest income, Exchange gain, error gain, and Adjustments.
6. You have the option of setting up an expense account for bank charges, NSF fees, and interest expenses.
7. Are you done with your account? Just close it now by clicking on Save and Close.
8. The X in the corner of the window closes the accounts window.

Step 5: Set up the Sage 50 reconciliation again

1. Select the proper bank account from the list to perform a reconciliation and deposit.
2. Notice the rest of the settings besides the above. You can also enter a Statement Start Date, Statement End Date, and Reconciliation Date for any month you’re trying to reconcile.
3. Click Add Prior Outstanding to state the opening outstanding:
   • If there are transactions that were outstanding but weren’t printed/exported, you can manually bring them back by using the report button on your statement.
   • Sage 50 will only bring in automatically transactions dated between the Statement Start Date and the Statement End Date.
4. Set the date in Show Resolved Trans. On or after as far back as the oldest prior outstanding transaction
5. Select the outstanding transactions from the list of Resolved Transactions, and click on Checkout
6. A brief moment later, we were asked to click “Add to move them down to the Outstanding Transactions list.”
7. If the outstanding transaction does not appear in the list of Resolved Transactions, even after adjusting the original date, you can click Add Outstanding to add it manually.
   • This will not create a journal entry.
8. Click OK when you have added all the outstanding transactions or delivered them to your client.
   • If you don’t have any outstanding transactions, leave the Outstanding Transaction list empty and click OK.
9. It’s now easier than ever to reconcile your bank account!

How do you fix the Sage 50 Bank Reconciliation Unresolved Amount?

How to tackle the Sage 50 reconciliation adjustment required /Sage 50 last reconciled balance wrong error?
Here are the steps you need to follow if you have unresolved amount or discrepancy issues in Sage 50:

Step 1: Verify the Below Causes of the Sage 50 Bank Reconciliation Discrepancy:

1. Check the entries of the statement: Opening Balance, Ending Balance, Statement Start date, and Statement End Date
2. Check the date of the transactions
3. All the transactions are recorded in the system
4. Verify that you have cleared the bank statement’s transaction
5. Check the book balance of the bank account linked with Sage 50
6. The outstanding sum is the same as the sum of all the unchecked items that appear in the Reconciliation window
7. Find out if you have correctly added bank fees and gains in the expenses and income options, respectively

Once verified, and found that they don’t, and then it is recommended to reset the bank reconciliation in Sage 50.

Step 2: If you get a Discrepancy in the Bank Reconciliation, it Will Not post an Error.

1. To calculate the discrepancy, here is a formula:
2. Discrepancy = opening book balance – (opening outstandings + statement opening balance)
3. To discover the opening outstanding values, you need to refer to the previous year’s remaining outstanding sum of the reconciliation.
4. If you are performing reconciliation for the first time, then your “opening outstanding” is the same as the sum of prior outstanding, as you have added to the start date.

Below are the steps to discover the opening book balance value:

1. Without fixing the discrepancy, the bank reconciliation cannot proceed to the next step
2. If there is data corruption in the bank reconciliation, then perform the following comparison:
3. Check the Opening book balance = statement opening balance + opening outstanding.
   • If they are not equal, then it displays a difference known as a discrepancy amount
   • If they are the same but still have a discrepancy amount, then there is damaged data in the bank reconciliation table. To resolve this, you need to reset the bank reconciliation
4. The balance that appears at the top is the opening balance
5. Click the Ok button
6. Choose the account
7. Adjust the beginning and finishing dates; they should be the same as the bank reconciliation dates
8. After this, click on Reports >> choose Financials >> click General ledger

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Step 3: How to Handle an Unresolved Reconciliation Sage 50 issue?

1. It usually comes up on the screen as unresolved is negative or unresolved is positive.
2. The unresolved formula is as below:
   • Unresolved = (Statement end balance + ending outstanding) – ending book balance.
   • The outstanding amount is the amount on the bank reconciliation window.

Negative unresolved issues can be found due to the following reasons:

• High-end book balance: This is because of many debit entries, missing credit entries when adjusted transactions take place, a wrong end date in reconciliation, and more.
• Too low ending outstanding: Missing outstanding, outstanding account mistakes, or incorrect statement end date.
• Too low statement ending balance:
  • It is because of bank errors, human mistakes, and the wrong end date entered in the statement
  • You need to find suitable reasons
  • Once you come up with the appropriate cause, then the suitable adjustments
  • If issues persist, then reset the reconciliation.

When is a resolution positive?

1. Firstly, search for the causes
2. This error occurred due to the following reasons:
3. Discover the valid reason and accordingly perform the adjustments.

Frequently Searched by People: How to reconcile bank statements in Sage 50

What do you mean by Discrepancy is Negative in Sage 50?

It determines that the opening book balance is less than the total amount of the statement opening balance + opening outstanding (Opening book balance (Total amount of statement opening balance + opening outstanding)

Below are the reasons associated with negative discrepancy:

1. Too high the opening outstanding or the statement opening balance
2. Too low opening book balance

Find out complete information on how to easily fix the Sage 50 Out of Balance issue step by step.

Resolution: Negative Balance Amount Sage 50 Reconcile

Verify the below:

1. Missing debit entries in earlier start dates, vast credit entries, and the start date of the statement are incorrect on the bank reconciliation window
2. There might be many outstanding debit cheques, wrong-posted cheque dates, duplicates, bank errors, human mistakes, and incorrect statement end balances. etc.
3. Find out the suitable reason and make the adjustments
4. If you have cleared a receipt and do not void a credit note, then clear it

Check out How to Set up Sage 50 Bank Feed, a guide that helps you to do reconciliation for the first time.

What to Do if the Discrepancy is Positive in Sage 50

The significant factors for it can be:

• Too high opening book balance: It is due to missing credit entries, many debit entries preceding the beginning date, and the wrong start date on the bank reconciliation window
• Too low opening outstanding: When the outstanding in a debit cheque is not enough. It might result from wrongly posted dates for cheques or duplicate entries. It may also occur with massive outstanding credit cheques and more.
• Too low statement opening balance: This occurs with Bank statement errors from the bank side, or bank human mistakes. It also includes duplicate entries, the wrong amount entered in the bank reconciliation window, or a mismatched account balance.
• Perform the suitable adjustments in case you find any problems.
• It may require resetting the bank reconciliation once you post the entries or adjustments.

Sage 50 Account Reconciliation

With Sage 50, you can reconcile any general ledger account against your monthly statement. Typically, bank accounts, cash accounts (such as petty cash), and credit card accounts are reconciled. To detect bank errors, match real-world data to Sage 50 data, and identify possible fraud, you should reconcile accounts systematically every period.

Whenever possible, ask your bank to send your statement near the end of a period or month, and always reconcile your account as soon as it arrives.

You can apply (or clear) transactions in three different categories:

1. Deposits in transit
2. Outstanding checks
3. Other outstanding items (such as General Journal entries)

• Reconciling bank statements
  To reconcile an account, you need to enter the date of your bank statement and the ending balance of your bank account. The difference between outstanding checks, deposits in transit, and unreconciled differences is shown in the Outstanding Checks, Deposits in Transit, and Unreconciled Difference fields every time you clear a transaction.
• Reconciling bank transactions from bank feeds, Sage 50
  When you’re working in Account Reconciliation and select a general ledger account containing transactions from Sage Bank Feeds that haven’t been matched to existing Sage 50 transactions, Sage 50 tries to make a match to those transactions. It is also possible to manually match and clear any transactions that cannot be auto-cleared by Sage 50. Any imported records that are successfully matched and cleared this way are listed as auto-cleared.
• Reconciling bank statements imported into Sage 50
  Whenever you select an account in Account Reconciliation that contains electronically imported transactions that have not been matched to existing Sage 50 transactions, Sage 50 attempts to match those transactions. The imported records that are successfully matched are listed as auto-cleared. Sage 50 also allows you to manually match and clear any transactions that cannot be auto-cleared.
• Making an adjustment
  You can use the Add New button at the top of the window to make adjustments if an amount is different or if you forgot to record a transaction. You can choose what you want to add from the menu. Select General Journal Entry to adjust. Select Write Check or Account Register to add a new check. Select Receipt or Account Register to add a new receipt.
• Finding transactions in the Account Reconciliation window
  You can search for specific transactions in Account Reconciliation by selecting the Find button. The search is completed in a separate window.
• How are void transactions treated in Account Reconciliation?
  In Sage 50, the original check will appear in the Checks and Bank Debits section of the Account Reconciliation window, and the void (reverse) transaction will appear in the Deposits and Bank Credits section.

Conclusion

Here is the post on how to fix the Sage 50 reconciliation Discrepancy problem! If you need to explore more information on Account reconciliation, Sage 50 un-reconciled difference, or more, connect with the professional team. Reach Via Sage 50 Live Chat. If the process mentioned above is not working or you are unable to do bank reconciliation yourself, then contact the SAGE 50 Support Number for quick resolutions. Alternatively, you can dial the toll-free number +1-800-983-3087.

Frequently Asked Questions