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Balancing Account RRS feed

  • Question

  • I recently took over a job that uses Money 2004.  The previous person would balance the account each month on paper, but not on the program.  This went on for 11 years.  When I took over I went to balance the account and realized this.  I tried to set the beginning balance to a different amount, but that didn't work.  Is there anyway I can balance the account, without having to go back through 11 years of bank statements and balancing each one?  
    Saturday, June 10, 2017 10:11 PM

All replies

  • The balancing paradigm is that you receive a statement that covers
    a period of time, or at least it covers a set of transactions not
    covered by other statements.  The transactions covered by previous
    statements should have been marked as balanced before starting.
    The net sum of the reconciled transactions should match the
    starting balance.

    You may have already marked transactions that have been recognized
    by the statement issuer during the period of the statement as
    cleared.  Those transactions covered by the statement that have not
    been marked as cleared should be will be marked as such during the
    balancing process.

    Electronically cleared transactions are marked with E during
    downloads or imports.  For Money, this has no distinction from a
    blank C column for purposes of the balancing process.

    An E item that is marked as Reconciled or Cleared and later marked
    as unreconciled will return to its E status.

    For Money, E (Electronically cleared) is not considered Cleared by
    the Balancing process.  During the balancing, you must still
    left-click the Es to change them to Cs.  As you do, the Difference
    moves toward $0.00.  For M02, Es in the statement period are
    automatically changed to Cs.

    There appears to be no built-in effect of the C column for
    investment accounts.  There is no balancing.  The column can serve
    as a memo for whether downloaded etc.

    If you wish to start fresh and declare an account balanced, you can
    mark all entries balanced.  Select to show only unreconciled
    transactions.  Sort by date, and go to the oldest transaction.
    Hold down Cntl+Shift+M and let auto-repeat work thru the
    transactions until none are left showing.  Do not change the
    starting date or starting balance.  The starting balance is the sum
    of the transactions that have already been marked as reconciled.
    Then balance making the ending balance match the known balance.
    Choose the balance date to be the day after your last transaction.
    This is not the normal procedure.  It starts you with an amnesty
    for former balancing.

    Thereafter, you could follow the normal procedure.  Alternatively,
    you could do it the same way next time.

    During the normal procedure, you are presented with the list of
    transactions that are not reconciled.  In the left column will be
    the starting, and ending balances you entered as you started
    balancing.  There will also be a difference amount.  As you click
    on the C column for a transaction reflected on the statement, that
    space in the C column will change to a C.  If you mark an
    transaction cleared that has not actually been reflected on the
    statement, you can click the C column again to toggle the cleared
    status.  The difference should move toward zero.  As you continue,
    you should eventually get the difference to zero.  If you can not,
    you can click next.  Money will offer some choices.

    When balancing, usually you should not change "Total amount you owed last month".  That should be
    the algrabreic sum of all Reconciled statements.


    Saturday, June 10, 2017 10:41 PM
    Moderator
  • First, make sure the opening balance, 11 years ago, is correct. If not, you will never balance.

    Then, select Balance the account and enter the latest statement date and balance.

    Go to the first unreconciled amount and hold down Ctrl-Shift-M until all transactions are marked reconciled.

    Then go back to any transaction you can identify as unreconciled and clear the reconciliation with Ctrl-M.

    If you are lucky, the account will be balanced. If not, you will have to find the balancing entries: missing entries or old unpresented items which have not been reversed. Alternatively, just enter a balancing amount. The paper reconciliation may show what you need.

    Sunday, June 11, 2017 11:20 AM