This message indicates there are transactions that are anywhere from 12 to 24 months old that have not been reconciled. These old transactions should be reconciled prior to moving forward to the next fiscal year. For example, if you are attempting to change to the 17/18 fiscal year, then there are transactions in the 15/16 fiscal year that are not reconciled. We recommend that you answer No to this question and follow the steps below.
- Change to the fiscal year that has the unreconciled transactions.
- Find any non-zero unreconciled transactions. This includes any checks, deposits, interest or adjustment entries are not reconciled. To find unreconciled transactions quickly, right click on the 'X' on any reconciled transaction. This will sort the transaction register and the unreconciled transactions will appear at the top of the transaction register.
- Add up all unreconciled checks and any negative adjustment entries. From that figure, subtract any deposits and/or positive adjustment entries. Make note of this amount as it will be needed later.
- Reconcile all non-zero transactions that are not reconciled. Add these transactions to your most recent reconciliation report. You can skip any voided checks, transfers, and/or adjustment entries that are a zero total amount.
- Change the fiscal year back to the fiscal year that is being closed. In our example, this would be the 16/17 fiscal year.
- Enter an income adjustment for the amount calculated in step 3. In most cases, this will be a positive adjustment entry. If you had more in deposits and positive adjustment entries than you did in checks and negative adjustment entries, then the amount of the income adjustment will be negative. Charge the Church - General Operating or Tithe internal account and date the transaction for the last day of the fiscal year. See the example below.
- Reconcile this income adjustment, again, on the most recent reconciliation report. This will correct the report so that the report has the correct ending balance.
- Now the fiscal year can be changed to the new year without any errors.