How to clear transactions from closed years from the bank reconciliation

To clear an old transaction, you need to:

1. Create a negative invoice to offset the old invoice.
2. Create a negative payment to offset the old payment.
3. Clear the transactions from the bank reconciliation.

Create a negative invoice

1. Go to Payables/ Vendors& Purchases, Purchases.
2. Select the same Vendor that the original invoice was issued to.
3. Select a date in the current year.
4. Create a negative invoice for the same amount as the old transaction.
   • For example, if the original invoice was $250, the current invoice should be -$250

Create a negative payment

1. Go to Payables/ Vendors& Purchases, Payments.
2. Select the same vendor that you just created the invoice for.
3. Make sure the correct account is selected in the From drop down.
    NOTE: The From account should be same account that has the old transaction on the bank reconciliation.
   
   
4. Select the negative invoice and click in the Payment Amount column.
   • The negative amount will automatically show in the column
5. Press tab on your keyboard to bring the amount in the Total box.
6. Click Process.

Clear the transaction from the bank reconconciliation

1. Go to Banking, Reconcile Accounts, and select the correct Account.
2. Select the correct Statement End Date and Reconciliation Date.
3. Enter the Statement End Balance.
4. The transaction that you just processed will show as a positive amount in the Deposits column.
   • Clearing this transaction will offset the old transaction
5. Clear the transaction and proceed with your bank reconciliation as usual.