@Beryl
"Ultimately I fixed it somehow to show as income and show the client's balance was full paid then ultimately balanced the year, paid taxes etc etc. and the issue never appeared again."
Your screenshot is the best I've seen on this forum. Thanks for the details. I think the best way to handle this is to create a journal entry (JE) to create an equal and offsetting "payment" that you can use to clear against this deposit so your bank account reconciles. Since this is a double-entry accounting system and your bank balance is overstated by $180, you must have another account that is either under- or overstated by $180. Unless you see another account that is obviously under- or overstated by $180 (run a balance sheet to see if anything jumps out), I would create following journal entry:
| | Debit | Credit |
| Retained Earnings | 180.00 | |
| Bank Account | | 180.00 |
Make a note on the journal entry that it was created to clear a payment received from 2020. Then, go to reconcile and clear the $180 payment created by the JE against the 2020 deposit of $180 and you should be all set.
