Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →
A junior accountant reconciles the wrong entries, for example matching a receipt to the wrong invoice or marking a whole month reconciled, and needs to reverse it without damaging the records.
Undo returns entries to unreconciled status without deleting them. Zoho Books undoes reconciliations in reverse order, latest first. TallyPrime unreconciles individual entries through View Reconciled and Set Status.
A change log noting date, person, entries affected, reason and reviewer approval, kept with the original signed reconciliation.
The correct entries are reconciled, totals are unchanged where the amounts were the same, and the reviewer can see exactly what was changed and why.
Undoing a bank reconciliation sends entries back to unreconciled so you can match them again. Nothing is deleted. In Zoho Books you can undo only the most recent reconciliation from the Reconcile Account list. In TallyPrime you view reconciled entries and set their status back to unreconciled one by one, or correct a wrong link in auto mode.
How do you undo it in each product?
Zoho Books (per Zoho’s help):
- Go to Banking and open the bank account.
- Click the gear icon and choose Reconcile Account.
- Find the latest reconciliation in the list.
- From its dropdown, choose Undo Reconciliation and click Proceed.
Zoho’s help is clear that only the most recent one can be undone. To undo an older reconciliation, delete every reconciliation made after it first. For a single wrongly matched line that is not yet part of a saved reconciliation, open the line in the bank account and unmatch it.
TallyPrime (per Tally’s help):
- Open the Bank Reconciliation Summary for the bank ledger.
- Press F5 to view reconciled transactions.
- Select the entries under Manually Reconciled.
- Press F9 (Set Status) and set the status to System Inferred, then accept. The entries become unreconciled.
- Enter the correct Bank Date or link the correct entry.
What exactly should you do in each case?
| Scenario | TallyPrime | Zoho Books |
|---|---|---|
| Wrong Bank Date on one entry | Set Status back to unreconciled, enter the right date | Not applicable (Zoho uses matching, not Bank Dates) |
| One line matched to the wrong entry | Unreconcile it, then link the right voucher | Unmatch the line, then match the right entry |
| Whole month reconciled by mistake | Unreconcile the affected entries for that period | Undo Reconciliation on the latest reconciliation |
| Period already reviewed or audited | Get approval first, record the change, keep the signed paper | Same, and note that older reconciliations need later ones deleted first |
Is it safe to undo after the month has been reviewed or audited?
The software will let you, but the reviewer signed off on a specific set of matches. If you change them quietly, the signed working paper no longer describes what is in the system. Do three things:
- Ask first. Tell the reviewer or your CA what you found.
- Record it. Date, your name, entries affected, the reason, and who approved.
- Keep the original. File the signed reconciliation and attach the corrected one, rather than replacing it.
Companies in India are also expected to use accounting software that keeps an audit trail of changes. That trail shows the edit, but it does not explain why it was made. Your note does.
A worked example
A customer pays ₹1,18,000. You have two open invoices for ₹1,18,000: one to Kaveri Foods and one to Kaveri Retail. You match the bank credit to Kaveri Retail. A week later Kaveri Foods sends a remittance advice showing the payment was theirs.
- Undo the match (unmatch in Zoho Books, or Set Status to unreconciled in TallyPrime).
- Match the ₹1,18,000 credit to the Kaveri Foods invoice instead. In Tally, also correct the party on the receipt voucher if it was booked to the wrong party.
- Check the result. Reconciled bank total for the month: still ₹1,18,000 from this line, so the reconciled total does not change. What changes is the customer ledgers: Kaveri Foods now shows nil due, Kaveri Retail shows ₹1,18,000 due again.
This is why a wrong match can hide for months. The bank side looks perfect; only the customer balances are wrong.
What does the undo change, line by line?
Using the same example, say March has reconciled bank credits of ₹6,42,000 in total, including this ₹1,18,000 line.
| Figure | Before the undo | After the undo |
|---|---|---|
| Reconciled bank credits for March | ₹6,42,000 | ₹6,42,000 |
| Kaveri Foods amount due | ₹1,18,000 | Nil |
| Kaveri Retail amount due | Nil | ₹1,18,000 |
Why does the record of the undo matter?
For companies, Section 128 of the Companies Act, 2013 requires proper books of account, and Rule 3(1) of the Companies (Accounts) Rules requires accounting software that keeps an audit trail (edit log) of every change, for financial years starting on or after 1 April 2023. The auditor reports on that audit trail under Rule 11(g) of the Companies (Audit and Auditors) Rules. So an undo is not hidden: the edit log shows it. Write a short note on why you changed the match, and keep the customer’s remittance advice with it.
What to read next
- Next step: Reconciliation audit trail
- Prevention controls for manual reconciliation
- Tally bank reconciliation
TransactIG matches bank statement lines to your books, routes unclear ones such as equal-amount receipts to an exception queue, and gives audit-ready exports that show what was matched.