• If you are using Sage 50 2020.2 or newer and have a Sage 50 Cloud subscription, see How to reverse bank reconciliations to reverse a single bank reconciliation instead of resetting all bank reconciliations associated with an account.

Step 1: Make a backup

1. Create a backup of your data as you will lose all previously completed bank reconciliation information permanently.
   • Refer to the article: How do I create a backup?

Step 2: Get a list of Outstanding Transactions

1. Go to Reports, Banking, Account Reconciliation Report.
2. Under Report type: use Summary Report with Outstanding Transaction Detail.
3. Select the proper bank account, then select the proper Start Date and Finish Date to display the latest successfully reconciled period.
4. Select Report By Statement End Date.
5. Click OK to view the report.
6. Click Print or Open in Excel to save this report.

Step 3: Clear the Bank Reconciliation

1. Double-click on Chart of Accounts. (In Enhanced View go to the Company tab from the left pane and Chart of Accounts)
2. Double-click on your bank account.
3. Select the Reconciliation & Deposits tab.
4. Uncheck the box beside Save Transactions for Account Reconciliation.
5. Close the account by clicking on Save and Close.
6. Select OK to remove all reconciliation information.

Step 4: Re-enable the bank account for the bank reconciliation

1. Double-click on your bank account.
2. Select the Reconciliation & Deposits tab.
3. Put a checkmark in the box beside Save Transactions for Account Reconciliation.
4. The Set Up button will appear on the bottom of the page.
   • You can click on it and setup revenue accounts for Interest income, Exchange gain, Error-Gain, and Adjustments.
   • You can also set up expense accounts for bank charges, NSF Fee, and Interest Expense
5. Close the account by clicking on Save and close
6. Close the accounts window with the X in the corner

Step 5: Set up the bank reconciliation again

1. Open the Reconciliation & Deposits journal and select the proper bank account
2. Re-enter the Statement Start Date, Statement End Date, Reconciliation Date, Statement Opening Balance and Statement End Balance for the month you were trying to reconcile
3. Click Add Prior Outstanding to state the opening outstanding:
   • manually bring back the transactions that were outstanding as of your statement start date, by means of the report you printed/exported in step 2.
   • Sage 50 will only bring in automatically the transactions dated between the Statement Start Date and the Statement End Date. (See screenshot below)
4. Set the date in Show Resolved Trans. On or After as far back as the oldest prior outstanding transaction
5. Select the outstanding transactions from the list of Resolved Transactions
6. Click Add to move them down to the Outstanding Transactions list
7. If a transaction that was outstanding as of the Statement Start Date doesn't appear in the list of Resolved Transactions, even after modifying the search date, you can click Insert Outstanding and add it manually
   • This will not create a journal entry
8. Click OK when you have added all the outstanding transactions.
   • If you do not have any outstanding transactions to bring in, leave the Outstanding Transactions list empty and click OK
9. You can now reconcile your bank account again