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Sage 50 Reconciliation Discrepancy

Sage 50 Bank Reconciliation

Solve SAGE 50 Bank Reconciliation Discrepancies Problem

Issue Name: Sage 50 Bank Reconciliation Error
Applicable for Product: Sage 50, Sage 50 Accounts, Sage Line 50, Sage 50 Premium, Sage 50 Canada
Description: Mismatch in SAGE 50 & Bank transaction accounts.
Errors Messages: Discrepancy, Adjustment Required, Crashes, Slow, Unresolved Amount
Reports: Bank Statement, Bank Statement PDF, Retrospective Bank Reconciliation


To confirm the accuracy of the account, every organization uses the Bank reconciliation feature in accounting software. This process reduces the difference between the statement and bank transactions. After transaction matching, the differences between them should be zero. When the difference is not zero that is nothing but is also known as a discrepancy. At this point, if it’s found not zero then you should look for fixation methods of Sage 50 bank reconciliation discrepancy. The entire troubleshooting solutions are explained in this ultimate blog. Let’s explore in-depth Sage 50 bank Reconciliation discrepancy problems and their significant causes. Get detailed information on how to start Sage 50 Bank Reconciliation.

What is Sage 50 Bank Reconciliation Discrepancy?

Sage 50 Bank Reconciliation Discrepancy 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, demonstrate that both records are consistent with each other, and 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 both data should be detected as soon as possible, and, if necessary, corrected.

What are the most important aspects to remember about the Sage 50 Bank Reconciliation Discrepancy?

  • Bank Reconciliation aims to determine whether your account records and bank details agree.
  • Once a discrepancy and/or an unresolved amount have been recognized, the necessary time must be spent to determine their origin.
  • Here are no bank reconciliation analysis services or fast fixes available through Sage Consultant.
  • Since 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: Past reconciled transactions have been added, deleted, or altered or reconciliation arrangement. Hence you have faced issues while Reconciling the Sage 50 Bank Statement.

How Do You Fix The Reconciliation Discrepancy In Sage 50?

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

Step 1- Verify The Below Causes Of The Discrepancy:

  • Check the entries of statement Opening balance, Ending Balance, Statement Start date, and Statement End Date
  • Check the date of the transactions
  • All the transactions are recorded in the system
  • Verify you have cleared the bank statement’s transaction
  • Check the book balance of the bank account linked with Sage 50
  • The outstanding sum is the same as the sum of all the unchecked items that appear in the Reconciliation window
  • 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 reconciliation in Sage 50.

Step 2: If You Getting A Discrepancy Bank Reconciliation Will Not Posting An Error:

  • To calculate the discrepancy here is a formula:
  • Discrepancy = opening book balance – (opening outstandings + statement opening balance)
  • To discover the opening outstanding values you need to refer to the previous year remaining outstanding sum of the reconciliation.
  • 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 mentioned are the steps to discover the opening book balance value:

  • Without fixing the discrepancy, the bank reconciliation cannot proceed to the next step
  • If there is data corruption in the bank reconciliation then perform the below comparison:
  • 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
  • The balance that appears on the top is the opening balance
  • Click Ok button
  • Choose the account
  • Adjust the beginning and finishing dates it should be the same as the bank reconciliation dates
  • After this give click on Reports >> choose Financials >> click General ledger

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What Do You Mean By Discrepancy Is Negative In Sage 50?

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

Below are the reasons associated with negative discrepancy:

  • Too high opening outstanding or the statement opening balance
  • Too low opening book balance

Find out complete information on how you can easy Sage 50 Out Of Balance Fix the Sage 50 Out Of Balance issue step by step.

Resolution: Negative Balance Amount Sage 50 Reconcile

Verify the below:

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

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

What To Do If The Discrepancy Is Positive Sage 50

The significant factors for it can be:

Too high opening book balance:
It is due to missing credit entries, found many debit entries preceding the beginning date, 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 due to wrong posted dates for cheques or when 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, 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 problem
  • It may require resetting the bank reconciliation once you post the entries or adjustments.

Step 3- How To Handle An Unresolved Reconciliation Sage 50 Issue?

  • It usually comes up on the screen as unresolved is negative or unresolved is positive.
  • 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 can be found due to the following reasons:

  • High-ending book balance:
    It is because of many debit entries, missing credit entries when adjusted transactions take place, 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 the suitable reasons
    • Once you come up with the appropriate cause then do the suitable adjustments
    • If still issues persist then reset the reconciliation.

When resolved is positive?

  • Firstly search for the causes
  • This error encounters due to the below reasons:
  • Discover the valid reason and accordingly perform the adjustments.

Reset Bank Reconciliation in Sage 50

If you don’t switch to Sage 50 2020.2 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 the sage 50 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

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

Step #3: Clear the bank reconciliation

  • 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.
  • To double-click on your bank account, right-click and select open.
  • Choose the Reconciliation & Deposits tab
  • Uncheck the box beside “Save Transactions for Account Reconciliation”
  • Once you are done using your account, click the green “Save and close” button.
  • Select the OK option to remove reconciliations

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

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

Step #5: Set up the bank reconciliation again

  • Select the proper bank account from the list in order to perform a reconciliation and deposit.
  • 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.
  • 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.
  • Set the date in Show Resolved Trans. On or After as far back as the oldest prior outstanding transaction
  • Select the outstanding transactions from the list of Resolved Transactions, and click on Checkout
  • A brief moment later, we were asked to click “Add to move them down to the Outstanding Transactions list.”
  • 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.
  • 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.
  • It’s now easier than ever to reconcile your bank account!

Conclusion

Here is the post on how to fix the reconciliation discrepancy in Sage 50 completes! 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 dial the Toll-Free number +1-516-472-4307.

PDF Copy of How to Fix Sage 50 Bank Reconciliation Discrepancies Error?


Frequently Asked Questions(FAQ)

How I can resolve the Sage 50 Bank reconciliation crashes?

There are many causes of sage 50 crashings including window registry errors, corrupted data, update missing, wrong windows installation, and more. Resolve the issue by renaming the userpref.dat file, damaging bankrec.dat, renaming the sage.ini file, or fixing compatibility problems.

How do I reset the bank account reconciliation in Sage 50?

1. First of all, create a backup
2. Make a list of outstanding transactions
3. Now clear out the bank reconciliation with the following instructions:
4. Locate the chart of accounts
5. Double-click on the desired bank account
6. Choose the Reconciliation & deposits option
7. Unselect the field located near “save transactions for Account Reconciliation”
8. Hit Save and Close button
9. Click Ok
10. Re-enable the bank account to process bank reconciliation
11. Once again, attempt to set up the bank reconciliation.

How to delete a reconciled transaction in Sage 50?

You can reverse a bank-reconciled transaction in Sage 50 by following the below instructions:

1. Discover Bank Accounts
2. Choose the desired bank account
3. Hit Reconcile button and then choose to reverse the reconciliation
4. Pick the suitable reconciliation and then select Reverse reconciliation
5. Give a click-to-yes option
6. Again hit the yes button

What do you mean by Sage 50 auto reconciliation?

In Sage 50 automatic reconciliation permit you to automate the reconciliation process. It decreases the cut-down time, cost, and errors involved in the manual reconciliation process. In this, transactions get automatically imported to Sage 50 in the background when it’s set as default.

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2 thoughts on “Sage 50 Reconciliation Discrepancy”

  1. Hello. I keep getting message that no account has been selected.
    The bank is reconciled and there is nothing unresolved.
    Can you help me?

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