If you see transactions under this heading in the reconciliation screen, one of three things has (not) happened.
|The problem||How it should be recorded|
|Transfers between bank accounts have been incorrectly recorded||Link to ZD Transfers between bank accounts|
|You haven't matched a Spend Money or Receive money against an invoice in Xero||Link to ZD Not matching invoices and bills|
|You've recorded a transaction directly from the invoice or bill||Link to ZD Directly recording money transaction through the invoice/bill|
How to correct
'Remove and Redo' is your friend!
Go to Account Transactions in the bank account and search for the incorrect entry. Tick the entry and then click ‘Remove and Redo’ (top left, just above the date column).
Xero will ask you to confirm this action. Confirm it.
Don't worry - it doesn't delete the transaction in the bank account! 'Remove and Redo' simply puts the entry back into your unreconciled items.
Now that it's back in your unreconciled items list, you can account for it correctly.