What happens to reconciling items that can't be matched?
Short answer
Each one is investigated, then corrected with an adjusting entry or carried forward with its original date until it clears or is escalated.
An item can't be matched when no bank line or ledger entry accounts for it, even after date windows, netted fees, and grouped matches are allowed for. At that point the work shifts from matching to explaining why the item exists and what to do about it.
Investigating the cause
- Trace it to source: Pull the statement line, invoice, deposit slip, or payment record behind the item and compare the amount and date.
- Check other accounts and periods: Look for the same amount in other bank accounts, the prior period, and the next statement.
- Classify the difference: Decide whether it's a timing difference that will clear on its own or a true difference where one side is wrong or incomplete.
Correcting it or waiting for timing
- Timing differences: No entry is needed for an outstanding check or a deposit in transit. The item stays on the reconciliation and should clear next period.
- True differences: An unrecorded bank fee, a keying error, a duplicate, or a misposted payment needs an adjusting entry in the period it's found, or a fix at the source if the bank or vendor made the error.
Carrying items forward
Unresolved items roll into the next reconciliation with their original transaction date, not the date they were first flagged, so aging stays accurate. Dropping an item or resetting its date hides how long it has been open.
Aging and escalation
- Aging limit: Items past a set age, such as 60 or 90 days, go to the controller or close owner instead of rolling forward again.
- No suspense parking: Moving an unknown item to a suspense account hides it rather than resolving it.
- Repeat patterns: A remainder that shows up every month usually points to a process issue, such as fees that are never booked.
Where Ramp Stack flags unmatched items
When a Ramp Stack agent can't match an item, it flags it for the accountant to resolve rather than guessing at a cause or forcing a match. The accountant decides whether the item needs an adjusting entry or should be left to clear, and the agent prepares any correction as a new journal entry.
The accountant approves it before it posts.
Related questions
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