⚠️ Attention: Please note that this article is relevant only for the migration process from another accounting system. Hence we warmly recommend to use the Unreconciled Entries feature with care, as all the entries you process in it won't be reflected in your Nominal accounts. Your data could be inaccurate if misused.
Keep reading, to better understand why and how those entries aren't affecting your accounts but only reconciliations. 👇
Table of Contents
Introduction
You know that when going through the reconciliation process, there might be inconsistencies such as missing transactions compared to what's in the actual statement. In that case, Indigo Business allows you to create those missing transactions directly from the Reconciliation page itself.
There might also be scenarios where the inconsistency is in the statement rather than in your transactions list for that period, due to delays in recording certain movements. In such case, you would wait for the following statement to make up for the missing lines. However, when migrating from another accounting system you can't just wait for the new statement to reconcile your transactions.
How to deal with this scenario? Keep reading to find out 👇
A bit of Context...
Imagine you receive a receipt from your supplier and pay it via cheque. You record the transaction by debiting your liability account and crediting your bank account.
However, by the time the supplier deposits your cheque, you've already requested a bank statement—meaning the outgoing money won't be reflected in your issued bank statement.
Then you start your reconciliation and the transaction appears in your system but not in the statement, meaning it can't be reconciled immediately. You'll need to wait for the next bank statement to include that transaction.
Although, this doesn't apply when migrating from another accounting system. In such cases, you enter an Opening Balance for each account without importing transactions.
While this speeds up the transition, the unreconciled transactions won't be available for reconciliation with the new statement. Besides, your new opening balances already include these unreconciled transactions, so creating regular transactions would inevitably affect your figures. How can you proceed then?
Here's the trick 😉: create unreconciled transactions using the Nominal Unreconciled Entries feature by navigating to Nominal > Opening Entries from the top horizontal menu.
This feature allows you to create dummy transactions against your accounts just to match them with your statement lines, without affecting the accounts' balances.
Using Nominal Unreconciled Entries
From the Nominal account dropdown, select the accounts related to the unreconciled transaction (as you normally would for a regular posting).
Enter the proper date in the Date field.
Add your debit and credit lines ( ➕ Add line item button) and click on Post at the bottom right of the screen.
Basically, you have to 're-post' the unreconciled transactions you previously recorded in your former accounting system, but as dummy ones only for reconciliation purposes.
This will avoid affecting your accounts balances as their computation already includes the unreconciled transactions figures due to the migration process (Opening Balances).
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