Reconciliation Discrepancy is a transaction that has been deleted or altered after the account for the month, quarter, or year has been reconcile (closed).
Usually the discrepancy occurs when the withdraws and deposits in the accounting system match the bank account withdraws and deposits and the balance of difference is still off.
This should be an indication that there is a discrepancy in the account. If your accounting system is able to generate a reconciliation discrepancy report it will be easy to find the exact amount off for the transaction.
If your accounting system doesn’t have the option to generate a reconciliation discrepancy report. You will have to manually look at each transaction in the general ledger to find the discrepancy that is missing from the bank statement.
Once you find the discrepancy you will have to undo the reconciliation from the previous period and redo the reconciliation process to able to move forward and close the month, quarter, or year in the future.
Having no reconciliation discrepancy will make it easier to track on transaction, so that reports are accurate, easier to reconcile during the period you are closing, and have no duplicate transactions.
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