⚠️ Important
This article applies only to the migration process from another accounting system. Use the Nominal Unreconciled Entries feature with care: entries you process here are not reflected in your Nominal accounts. If misused, your data may become inaccurate.
Keep reading to understand why these entries don't affect your accounts and how they're used solely for reconciliations. 👇
Table of Contents
Introduction
You know that when going through the reconciliation process, there may be inconsistencies, such as missing transactions from the actual statement. When this happens, Indigo Business allows you to create those missing transactions directly from the Reconciliation page itself.
In other cases, the inconsistency may be on the statement itself rather than in your transaction list, due to delays in recording certain movements. Normally you would wait for the next statement before reconciling the missing transactions–but this doesn't work when you're migrating from another accounting system.
So how do you deal with this scenario? Keep reading to find out. 👇
A bit of Context
Imagine the following scenario:
You receive a receipt from a supplier and pay it by cheque. You record the transaction by debiting your liability account and crediting your bank account.
However, by the time the supplier deposits your cheque, you've already requested a bank statement—so the outgoing money won't be shown in your issued bank statement.
When you start the reconciliation, the transaction appears in your system but not on the statement, so it can't be reconciled yet. You would usually need to wait for the next bank statement to include it.
This doesn't apply when migrating from another accounting system. In such cases, you enter an Opening Balance for each account without importing historical transactions. While this speeds up the transition, the unreconciled transactions won't be available for reconciliation with the new statement.
Moreover, your new opening balances already include these unreconciled transactions. Creating regular transactions again would inevitably affect your figures.
So how can you proceed?
Here's the solution 😉: create unreconciled transactions using the Nominal Unreconciled Entries feature, by navigating to Nominal > Opening Entries from the header menu.
This feature allows you to create dummy transactions against your accounts that can be matched with your statement lines, without affecting the account balances. These entries exist purely for reconciliation purposes.
Using Nominal Unreconciled Entries
From the Nominal account dropdown, select the accounts related to the unreconciled transaction (as you would for a regular posting).
Enter the correct date in the Date field.
Add the debit and credit lines using the ➕ Add line item button
Click Post at the bottom right of the screen.
Essentially, you're re-posting the unreconciled transactions from your former accounting system, but as dummy entries, and only for reconciliation purposes.
This will avoid affecting your account balances, as their computation already includes the unreconciled transactions figures due to the migration process (Opening Balances).
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