The Reconciliation window is used to reconcile your GnuCash accounts with statements that banks or other institutions send you.
For example, when you write a check for something, you should enter the transaction into GnuCash. The reconciliation (R) field of the transaction will initially contain 'n' (not reconciled). Later, if you think that the check has been cashed, you might click on the transaction's R field to change it to 'c' (cleared, but not reconciled).
At the end of the month, you receive your bank statement, perhaps including canceled checks. At that point, you should "reconcile" the account, that is, match your personal records with the documentation provided by the bank.
Open the reconcile window by selecting 'Reconcile...' from the 'Accounts' menu of the account's Register window. GnuCash will prompt you for some information from the statement:
Enter the date of the end of the period that the statement covers, and the final balance from the statement, and press 'OK'.
The Reconcile window will pop-up. The reconcile window looks like this:
The 'Funds In' and 'Funds Out' groups lists all the unreconciled transactions. The '?' columns show whether the transactions have been cleared or reconciled.
Look for the matching item in the Reconcile window. If you cannot find one, then perhaps you forgot to enter a transaction, or did not know that the transaction had happened. You can use the 'New' button on the tool bar, or the 'New' menu item in the 'Transaction' menu, to open a register window and enter the missing transaction. The new item will appear in the Reconcile window when you press 'enter' after entering the transaction.
When you find the item in the Reconcile window, compare the amount to the amount on the statement. If they disagree, you may have made an error when you entered the transaction in GnuCash. You can use the 'Edit' button on the tool bar, or the 'Edit' menu item in the 'Transaction' menu, to open a register window and correct the transaction.
If the amounts agree, click on the item in the Reconcile window. The '?' column will change to 'y' (reconciled) from 'n' or 'c'.
You then repeat this for each item that appears on the bank statement, verifying that the amounts match with the amounts in GnuCash, and marking off transactions in GnuCash as they are reconciled.
Return to Main Documentation Page.