Managing Balancing Entries and batches
Balancing entries are created every time a recon is done and there is an amount difference between the bank and the cashbook. They can be triggered as part of a manual recon, auto recon or journal rule.
Balancing entries are always created on the Cashbook side
They are assigned a batch type and transaction type by the process that generated them or manually
Batches and balancing entries created by an auto recon rule are closed automatically
Batches and balancing entries created by a journal rule can be closed automatically or left open for approval
Batches and balancing entries created manually need to be approved
The recon was wrong and I've removed it. What does this mean for balancing entries?
This depends on when the incorrect recon was identified and what has happened since the recon.
Picked up immediately - easy, simply break the match and delete the transaction from the open batch
Batch is closed/Accounting period is closed/already posted the balancing entry to your GL system - you'll need to do a reversal in this case. So remove the recon, and then create a new transaction (either manually or through the manual recon screen) and post it to the same GL account as the original balancing entry. You've now created a contra entry that will act as a reversal in your accounting package and adjust the Cashbook balance if required when the current accounting period is closed