Fix an incorrectly reconciled bank statement line

  1. Overview
  2. Reconciling Transactions
  3. Issues with reconciling
  4. Fix an incorrectly reconciled bank statement line

ⓘ This article is for small businesses who use Xero 

Overview
  • If you’ve reconciled a bank statement line to the wrong transaction, unreconcile or delete the account transaction before you reconcile the bank statement line again.

How it works

If a payment of an invoice or bill was reconciled, but it still shows as awaiting payment, it’s likely the statement line was reconciled with a receive or spend money transaction, instead of with the invoice or bill. This can cause duplicate transactions and therefore an incorrect balance in your bank account.

To fix this, you’ll need to find the statement line for the payment and delete the incorrectly created transaction.

If the statement line is reconciled with the incorrect payment, you can unreconcile the transaction instead, then reconcile it correctly or delete the payment.

Once you've either unreconciled or deleted the transaction, you can reconcile the statement line again.

Unreconciled or delete the transaction

ⓘ Tip
An invoice or bill payment will always show as Payment: xxx. If it's a receive or spend money transaction, the contact name will display.

 
  1. View the bank reconciliation details for the statement line.

  2. Click the account transaction on the right to open it.

    Image of the Reconciled transaction details

  3. If the statement line is matched against a spend or receive money transaction instead of an invoice or bill payment, click Options, then select Remove & Redo to delete the payment.

    If it’s matched against an incorrect invoice or bill payment, click Options, then select Unreconcile. This keeps the invoice or bill payment, ready to reconcile to the correct statement line. Or you can delete the transaction by selecting Remove & Redo.

  4. When the statement line is ready to reconcile again, reconcile it to the correct payment.

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