How do I fix a reconciliation error after deleting a previously reconciled expense in QuickBooks Online?

Deleting a transaction that was part of a completed reconciliation changes the ending balance QuickBooks Online used for that period, which throws off the beginning balance for your next reconciliation. To fix it, pull the deleted expense's original details from the Audit log, recreate it, and work through the Reconcile Discrepancy Report until the total difference reads $0.00.

Why did deleting an expense break my reconciliation?

Your beginning balance is checked against the ending balance of your last completed reconciliation every time you reconcile. When a reconciled transaction is edited, deleted, voided, moved, or unreconciled, that ending balance no longer matches, and QuickBooks Online blocks you with an alert that your account isn't ready to reconcile yet.

How do I fix the discrepancy caused by a deleted transaction?

1. Go to All apps, then Accounting, then Bank transactions, and confirm every transaction for the period is matched, categorized, posted, or excluded.
2. Go to All apps, then Accounting, then Reconcile, and choose the account. When you see the alert that your beginning balance is off, select "We can help you fix it." This opens the Reconcile Discrepancy Report.
3. Work through the report one item at a time. Check the "What happened" column, then select "Review in tray" for details on that change, or make your own correction based on your records.
4. If the deleted expense doesn't show clearly in the report, go to Settings, then Tools, then Audit log. Filter by user, date, and event, and locate the deleted transaction. Select View in the History column to find all the information for the transaction.
5. Recreate the expense using that information, with its original transaction date. Once it's re-entered, the register shows it as unreconciled.
6. Go to All apps, then Accounting, then Chart of accounts, and select View register for that account. Find the transaction you just recreated and select the box in the checkmark column until it shows “R,” marking it reconciled again.
7. Return to the Reconcile Discrepancy Report. Once everything is accounted for, the Total discrepancy difference should read $0.00, and your beginning balance should match your bank statement.

Can I undo the whole reconciliation instead of fixing one transaction?

Yes, if you'd rather start that period over. Only the Primary Admin can undo an entire reconciliation, however, and it's irreversible. This permanently deletes the associated reconciliation reports and attachments, so download anything you need first. To undo the reconciliation, sign in as Primary Admin, go to Reconcile, select History by account, find the reconciliation, open the Action dropdown, and select Undo.

Frequently asked questions

Do I need my accountant to fix this? Not necessarily, if you're only correcting one transaction and have admin access to view and edit reconciliations. You'll want to loop in your accountant if the fix affects a reconciled period you're not certain about, or if you decide to undo an entire reconciliation.

How do I find exactly what I deleted? Go to Settings, then Tools, then Audit log, and filter by user, date, and event. Locate the deleted transaction and select View in the History column for its full details.

Can I remove just one transaction from a reconciliation without undoing the whole thing? Yes. In the account register, select the box in the checkmark column for that transaction repeatedly until it's blank. This cycles its status from “R” (reconciled) to “C“ (cleared) to blank (uncleared), and only affects that one transaction.

Will recreating the deleted expense create a duplicate? Not if it was actually deleted rather than voided or still sitting in the register uncleared. Check the Audit log first to confirm the transaction is gone, not just unreconciled, before recreating it.

What if my beginning balance is still off after all of this? Double check that the changes you found add up to the exact amount your beginning balance was off by. If it still doesn't match after working through the discrepancy report and the audit log, your accountant can help track down what's left.