BUG -- Reconciliation Report

TheRealChipA

Background -- I use the Reconciliation Report daily to perform my revenue accounting for the previous day. I use a spreadsheet to help me organize the numbers on that report into a journal entry and, until today, it is always been correct when compared to my transfer for the day.

Today, however, I found that my actual transfer for 4/14 sales was $0.39 higher than what the Reconciliation Report said it should be. When I looked at the deposit detail (on the Balances tab), I saw a line item for "Other Adjustments $0.39" that does NOT exist on the Reconciliation Report.

I'm assuming that this $0.39 adjustment is a refund of fees I overpaid sometime. But, of course, since there is no detail for the reason, and since "other" doesn't mean a thing from an accounting point of view, I can't be sure.

Shouldn't the Reconciliation Report also have this "other adjustment" so that the bottom line of funds available for transfer is correct? That seems like a huge hole for a bug to crawl into, otherwise.

Thanks!

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

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TheRealChipA

Update --- it turns out the $0.39 is actually a loan payment refund. This makes the omission from the Reconciliation report even more critical since it reports daily aggregate loan payment and does not take into account this refund that is erroneously labeled "other adjustment."

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

Was my post helpful? Take a moment to mark it as a solution. Marked solutions help other sellers find possible resolutions to similar problems. Also, if you find your solution elsewhere (say, through Support), it is helpful to come back to your post and tell us about it, then mark that as a Solution. Solutions are what this Community is all about!

tomven

Great pickup @TheRealChipA.

This is exactly the kind of edge case that can quietly throw out a Seller’s daily reconciliation, especially when loan repayments are involved. Calling out the mismatch between the Reconciliation Report and the Balances detail, and then tracing it back to a loan payment refund, is hugely valuable for anyone relying on this report for revenue accounting.

We have also had an interesting time trying to reconcile Square loans in Xero. On top of that, we are seeing some weird ongoing reconciliation issues where Xero and Square seem to get out of sync, and Xero’s Square balance does not zero out correctly. It has been in the too-hard basket for a little while, but this issue is definitely pushing it back up the priority list. Really appreciate you digging into this and sharing the detail with the community.

Proud Australian Square Champion and avid users of Square Appointments • Square POS • Square Online • Square Reader • Square Stand

We use Square with integrations for Xero by Amaka • Printful / We design, develop and implement Square with Squarespace • Shopify • WooCommerce • QuickBooks and more!

TheRealChipA

@tomven Your Xero integration experience is one reason why I don't use Zoho Books' integration with Square. It's rarely correct. So, I download two CSVs -- the reconciliation report and an AI/ManagerBot Query of Gross Sales by Channel the previous day. I do the sales channel AI query because Square lumps those into one line "Other Payments" in the Recon Report, which is downright weird.

Anyway, after I read your post, I can give you one heads-up. If you have penny rounding enabled on your POS, then you'll need to massage the Recon Report. I import it into a spreadsheet, first. Then I map the various lines on that report to a journal entry that I manually enter each day. This allows me to instantly see any imbalances and investigate them. Anyway, one of the things that my spreadsheet does is calculated the difference between Recon Report credits and debits. Those are almost always penny rounding issues since I have it enabled. I'm betting the Xero integration doesn't take that into account, yet. And, if the rounding error is more than "normal" (25 cents or so), then I can be sure that something affected my bottom line funds available for transfer that I haven't taken into account.

In the case of the loan payment adjustment, this was hidden because my recon report balanced because of a "hidden" adjustment. But, usually, I see new line items in the adjustment report instantly. Most integrations between Square and accounting software aren't that sophisticated.

I can share that spreadsheet, if you are curious. PM me.

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

Was my post helpful? Take a moment to mark it as a solution. Marked solutions help other sellers find possible resolutions to similar problems. Also, if you find your solution elsewhere (say, through Support), it is helpful to come back to your post and tell us about it, then mark that as a Solution. Solutions are what this Community is all about!