diff --git a/src/engine/Account.c b/src/engine/Account.c
index d4b859f011..8331df354e 100644
--- a/src/engine/Account.c
+++ b/src/engine/Account.c
@@ -1529,7 +1529,297 @@ xaccAccountTypesCompatible (int parent_type, int child_type)
 
 /********************************************************************\
 \********************************************************************/
+static kvp_frame *
+xaccAccountGetReconcileInfo (Account *account)
+{
+  kvp_value *value;
 
+  if (!account)
+    return NULL;
+
+  value = kvp_frame_get_slot (xaccAccountGetSlots (account), "reconcile-info");
+  if (!value)
+    return NULL;
+
+  return kvp_value_get_frame (value);
+}
+
+/********************************************************************\
+\********************************************************************/
+static void
+xaccAccountMakeReconcileInfo (Account *account)
+{
+  kvp_frame *slots;
+
+  if (!account)
+    return;
+
+  if (xaccAccountGetReconcileInfo (account))
+    return;
+
+  slots = xaccAccountGetSlots (account);
+  if (!slots)
+    return;
+
+  xaccAccountBeginEdit (account);
+  {
+    kvp_frame *frame;
+    kvp_value *value;
+
+    check_open (account);
+
+    frame = kvp_frame_new ();
+    value = kvp_value_new_frame (frame);
+
+    kvp_frame_set_slot (slots, "reconcile-info", value);
+
+    kvp_value_delete (value);
+    kvp_frame_delete (frame);
+
+    mark_account (account);
+  }
+  xaccAccountCommitEdit (account);
+}
+
+/********************************************************************\
+\********************************************************************/
+gboolean
+xaccAccountGetReconcileLastDate (Account *account, time_t *last_date)
+{
+  kvp_frame *recn_info;
+  kvp_value *value;
+
+  if (!account)
+    return FALSE;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+    return FALSE;
+
+  value = kvp_frame_get_slot (recn_info, "last-date");
+  if (!value)
+    return FALSE;
+
+  if (kvp_value_get_type (value) == KVP_TYPE_GINT64)
+  {
+    if (last_date)
+      *last_date = kvp_value_get_gint64 (value);
+
+    return TRUE;
+  }
+
+  return FALSE;
+}
+
+/********************************************************************\
+\********************************************************************/
+void
+xaccAccountSetReconcileLastDate (Account *account, time_t last_date)
+{
+  kvp_frame *recn_info;
+
+  if (!account)
+    return;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+  {
+    xaccAccountMakeReconcileInfo (account);
+    recn_info = xaccAccountGetReconcileInfo (account);
+    if (!recn_info)
+    {
+      PERR ("Couldn't make reconcile info");
+      return;
+    }
+  }
+
+  xaccAccountBeginEdit (account);
+  {
+    kvp_value *value;
+
+    check_open (account);
+
+    value = kvp_value_new_gint64 (last_date);
+
+    kvp_frame_set_slot (recn_info, "last-date", value);
+
+    kvp_value_delete (value);
+
+    mark_account (account);
+  }
+  xaccAccountCommitEdit (account);
+}
+
+/********************************************************************\
+\********************************************************************/
+gboolean
+xaccAccountGetReconcilePostponeDate (Account *account,
+                                     time_t *postpone_date)
+{
+  kvp_frame *recn_info;
+  kvp_value *value;
+
+  if (!account)
+    return FALSE;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+    return FALSE;
+
+  value = kvp_frame_get_slot (recn_info, "postpone-date");
+  if (!value)
+    return FALSE;
+
+  if (kvp_value_get_type (value) == KVP_TYPE_GINT64)
+  {
+    if (postpone_date)
+      *postpone_date = kvp_value_get_gint64 (value);
+
+    return TRUE;
+  }
+
+  return FALSE;
+}
+
+/********************************************************************\
+\********************************************************************/
+void
+xaccAccountSetReconcilePostponeDate (Account *account,
+                                     time_t postpone_date)
+{
+  kvp_frame *recn_info;
+
+  if (!account)
+    return;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+  {
+    xaccAccountMakeReconcileInfo (account);
+    recn_info = xaccAccountGetReconcileInfo (account);
+    if (!recn_info)
+    {
+      PERR ("Couldn't make reconcile info");
+      return;
+    }
+  }
+
+  xaccAccountBeginEdit (account);
+  {
+    kvp_value *value;
+
+    check_open (account);
+
+    value = kvp_value_new_gint64 (postpone_date);
+
+    kvp_frame_set_slot (recn_info, "postpone-date", value);
+
+    kvp_value_delete (value);
+
+    mark_account (account);
+  }
+  xaccAccountCommitEdit (account);
+}
+
+/********************************************************************\
+\********************************************************************/
+gboolean
+xaccAccountGetReconcilePostponeBalance (Account *account,
+                                        gnc_numeric *balance)
+{
+  kvp_frame *recn_info;
+  kvp_value *value;
+
+  if (!account)
+    return FALSE;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+    return FALSE;
+
+  value = kvp_frame_get_slot (recn_info, "postpone-balance");
+  if (!value)
+    return FALSE;
+
+  if (kvp_value_get_type (value) == KVP_TYPE_GINT64)
+  {
+    if (balance)
+      *balance = kvp_value_get_numeric (value);
+
+    return TRUE;
+  }
+
+  return FALSE;
+}
+
+/********************************************************************\
+\********************************************************************/
+void
+xaccAccountSetReconcilePostponeBalance (Account *account,
+                                        gnc_numeric balance)
+{
+  kvp_frame *recn_info;
+
+  if (!account)
+    return;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+  {
+    xaccAccountMakeReconcileInfo (account);
+    recn_info = xaccAccountGetReconcileInfo (account);
+    if (!recn_info)
+    {
+      PERR ("Couldn't make reconcile info");
+      return;
+    }
+  }
+
+  xaccAccountBeginEdit (account);
+  {
+    kvp_value *value;
+
+    check_open (account);
+
+    value = kvp_value_new_numeric (balance);
+
+    kvp_frame_set_slot (recn_info, "postpone-balance", value);
+
+    kvp_value_delete (value);
+
+    mark_account (account);
+  }
+  xaccAccountCommitEdit (account);
+}
+
+/********************************************************************\
+\********************************************************************/
+void
+xaccAccountClearReconcilePostpone (Account *account)
+{
+  kvp_frame *recn_info;
+
+  if (!account)
+    return;
+
+  recn_info = xaccAccountGetReconcileInfo (account);
+  if (!recn_info)
+    return;
+
+  xaccAccountBeginEdit (account);
+  {
+    check_open (account);
+
+    kvp_frame_set_slot (recn_info, "postpone-date", NULL);
+    kvp_frame_set_slot (recn_info, "postpone-balance", NULL);
+
+    mark_account (account);
+  }
+  xaccAccountCommitEdit (account);
+}
+
+/********************************************************************\
+\********************************************************************/
 void
 xaccAccountSetPriceSrc(Account *acc, const char *src) {
 
diff --git a/src/engine/Account.h b/src/engine/Account.h
index 334ceeda07..7ce8df0b3f 100644
--- a/src/engine/Account.h
+++ b/src/engine/Account.h
@@ -277,6 +277,25 @@ void           xaccClearMark (Account *account, short val);
 void           xaccClearMarkDown (Account *account, short val);
 void           xaccClearMarkDownGr (AccountGroup *group, short val);
 
+/* The following functions get and set reconciliation information */
+gboolean       xaccAccountGetReconcileLastDate (Account *account,
+                                                time_t *last_date);
+void           xaccAccountSetReconcileLastDate (Account *account,
+                                                time_t last_date);
+
+gboolean       xaccAccountGetReconcilePostponeDate (Account *account,
+                                                    time_t *postpone_date);
+void           xaccAccountSetReconcilePostponeDate (Account *account,
+                                                    time_t postpone_date);
+
+gboolean       xaccAccountGetReconcilePostponeBalance (Account *account,
+                                                       gnc_numeric *balance);
+void           xaccAccountSetReconcilePostponeBalance (Account *account,
+                                                       gnc_numeric balance);
+
+void           xaccAccountClearReconcilePostpone (Account *account);
+
+
 /* The xaccAccountSetPriceSrc() and xaccAccountGetPriceSrc() routines
   are used to get and set a string that identifies the current source
   for investment pricing info.  Currently supported values include
diff --git a/src/engine/kvp_doc.txt b/src/engine/kvp_doc.txt
index 156bd309d9..9ae81d9fda 100644
--- a/src/engine/kvp_doc.txt
+++ b/src/engine/kvp_doc.txt
@@ -66,6 +66,26 @@ Use: This string holds the old Price Source code used by earlier versions
      is fully supported. The new version of Finance::Quote uses a different
      scheme to identify sources for price quotes.
 
+Name: reconcile-info
+Type: frame
+Entities: Account
+Use: store reconcile information about accounts
+
+Name: reconcile-info/last-date
+Type: frame
+Entities: Account
+Use: store the statement date of the last reconciliation
+
+Name: reconcile-info/postpone-date
+Type: gint64
+Entities: Account
+Use: store the ending statement date of a postponed reconciliation
+
+Name: reconcile-info/postpone-balance
+Type: numeric
+Entities: Account
+Use: store the ending balance of a postponed reconciliation
+
 Name: tax-related
 Type: gint64
 Entities: Account
diff --git a/src/engine/kvp_frame.h b/src/engine/kvp_frame.h
index 1569a1bcb2..e76895cc5d 100644
--- a/src/engine/kvp_frame.h
+++ b/src/engine/kvp_frame.h
@@ -65,7 +65,7 @@ kvp_frame   * kvp_frame_new(void);
 void          kvp_frame_delete(kvp_frame * frame);
 kvp_frame   * kvp_frame_copy(const kvp_frame * frame);
 void          kvp_frame_set_slot(kvp_frame * frame, 
-                               const char * key, const kvp_value * value);
+                                 const char * key, const kvp_value * value);
 kvp_value   * kvp_frame_get_slot(kvp_frame * frame, 
                                  const char * key);
 
diff --git a/src/gnome/reconcile-list.c b/src/gnome/reconcile-list.c
index 1a79db78c8..a1c573d400 100644
--- a/src/gnome/reconcile-list.c
+++ b/src/gnome/reconcile-list.c
@@ -146,6 +146,7 @@ gnc_reconcile_list_init(GNCReconcileList *list)
   list->current_split = NULL;
   list->no_toggle = FALSE;
   list->always_unselect = FALSE;
+  list->first_fill = TRUE;
   list->query = NULL;
 
   while (titles[list->num_columns] != NULL)
@@ -263,12 +264,11 @@ gnc_reconcile_list_set_row_style(GNCReconcileList *list, gint row,
 }
 
 static void
-gnc_reconcile_list_toggle(GNCReconcileList *list)
+gnc_reconcile_list_toggle (GNCReconcileList *list)
 {
   Split *split, *current;
   gboolean reconciled;
   const char *recn_str;
-  char recn;
   gint row;
 
   g_assert(IS_GNC_RECONCILE_LIST(list));
@@ -294,9 +294,8 @@ gnc_reconcile_list_toggle(GNCReconcileList *list)
     g_hash_table_remove(list->reconciled, split);
   }
 
-  recn = xaccSplitGetReconcile(split);
-  recn = reconciled ? YREC : recn;
-  recn_str = gnc_get_reconcile_str(recn);
+  recn_str = reconciled ? gnc_get_reconcile_str (YREC) : "";
+
   gtk_clist_set_text(GTK_CLIST(list), row, 4, recn_str);
 
   gnc_reconcile_list_set_row_style(list, row, reconciled);
@@ -533,7 +532,7 @@ gnc_reconcile_list_reconciled_balance(GNCReconcileList *list)
  * Returns: nothing                                                 *
 \********************************************************************/
 void
-gnc_reconcile_list_commit(GNCReconcileList *list, time_t date)
+gnc_reconcile_list_commit (GNCReconcileList *list, time_t date)
 {
   GtkCList *clist = GTK_CLIST(list);
   Split *split;
@@ -547,13 +546,49 @@ gnc_reconcile_list_commit(GNCReconcileList *list, time_t date)
 
   for (i = 0; i < list->num_splits; i++)
   {
-    split = gtk_clist_get_row_data(clist, i);
+    char recn;
 
-    if (g_hash_table_lookup(list->reconciled, split) != NULL)
-    {
-      xaccSplitSetReconcile(split, YREC);
-      xaccSplitSetDateReconciledSecs(split, date);
-    }
+    split = gtk_clist_get_row_data (clist, i);
+
+    recn = g_hash_table_lookup (list->reconciled, split) ? YREC : NREC;
+
+    xaccSplitSetReconcile (split, recn);
+    if (recn == YREC)
+      xaccSplitSetDateReconciledSecs (split, date);
+  }
+}
+
+
+/********************************************************************\
+ * gnc_reconcile_list_commit                                        *
+ *   postpone the reconcile information in the list by setting      *
+ *   reconciled splits to cleared status                            *
+ *                                                                  *
+ * Args: list - list to commit                                      *
+ * Returns: nothing                                                 *
+\********************************************************************/
+void
+gnc_reconcile_list_postpone (GNCReconcileList *list)
+{
+  GtkCList *clist = GTK_CLIST(list);
+  Split *split;
+  int i;
+
+  g_return_if_fail(list != NULL);
+  g_return_if_fail(IS_GNC_RECONCILE_LIST(list));
+
+  if (list->reconciled == NULL)
+    return;
+
+  for (i = 0; i < list->num_splits; i++)
+  {
+    char recn;
+
+    split = gtk_clist_get_row_data (clist, i);
+
+    recn = g_hash_table_lookup (list->reconciled, split) ? CREC : NREC;
+
+    xaccSplitSetReconcile (split, recn);
   }
 }
 
@@ -678,12 +713,11 @@ gnc_reconcile_list_fill(GNCReconcileList *list)
     strings[2] = xaccTransGetDescription(trans);
     strings[3] = xaccPrintAmount(gnc_numeric_abs (amount), print_info);
 
+    if (list->first_fill && recn == CREC)
+      g_hash_table_insert (list->reconciled, split, split);
+
     reconciled = g_hash_table_lookup(list->reconciled, split) != NULL;
-    recn = reconciled ? YREC : recn;
-    if (recn == NREC)
-      strings[4] = "";
-    else
-      strings[4] = gnc_get_reconcile_str(recn);
+    strings[4] = reconciled ? gnc_get_reconcile_str (YREC) : "";
 
     row = gtk_clist_append(GTK_CLIST(list), (gchar **) strings);
     gtk_clist_set_row_data(GTK_CLIST(list), row, split);
@@ -692,4 +726,6 @@ gnc_reconcile_list_fill(GNCReconcileList *list)
 
     list->num_splits++;
   }
+
+  list->first_fill = FALSE;
 }
diff --git a/src/gnome/reconcile-list.h b/src/gnome/reconcile-list.h
index c6102f01c0..60fa861b6f 100644
--- a/src/gnome/reconcile-list.h
+++ b/src/gnome/reconcile-list.h
@@ -61,6 +61,7 @@ struct _GNCReconcileList
 
   gboolean no_toggle;
   gboolean always_unselect;
+  gboolean first_fill;
 
   GHashTable *reconciled;
 
@@ -100,7 +101,9 @@ void gnc_reconcile_list_refresh (GNCReconcileList *list);
 
 gnc_numeric gnc_reconcile_list_reconciled_balance(GNCReconcileList *list);
 
-void gnc_reconcile_list_commit(GNCReconcileList *list, time_t date);
+void gnc_reconcile_list_commit (GNCReconcileList *list, time_t date);
+
+void gnc_reconcile_list_postpone (GNCReconcileList *list);
 
 void gnc_reconcile_list_unselect_all(GNCReconcileList *list);
 
diff --git a/src/gnome/window-reconcile.c b/src/gnome/window-reconcile.c
index c2ec8de675..949c072f0f 100644
--- a/src/gnome/window-reconcile.c
+++ b/src/gnome/window-reconcile.c
@@ -32,6 +32,7 @@
 
 #include <gnome.h>
 #include <stdio.h>
+#include <time.h>
 
 #include "AccWindow.h"
 #include "MainWindow.h"
@@ -323,13 +324,13 @@ startRecnWindow(GtkWidget *parent, Account *account,
   }
 
   /* Create the dialog box */
-  title = gnc_recn_make_window_name(account);
+  title = gnc_recn_make_window_name (account);
 
-  dialog = gnome_dialog_new(title,
-                            GNOME_STOCK_BUTTON_OK,
-                            GNOME_STOCK_BUTTON_CANCEL,
-                            NULL);
-  g_free(title);
+  dialog = gnome_dialog_new (title,
+                             GNOME_STOCK_BUTTON_OK,
+                             GNOME_STOCK_BUTTON_CANCEL,
+                             NULL);
+  g_free (title);
 
   gnome_dialog_set_default(GNOME_DIALOG(dialog), 0);
   gnome_dialog_set_close(GNOME_DIALOG(dialog), TRUE);
@@ -1273,6 +1274,28 @@ gnc_recn_create_tool_bar(RecnWindow *recnData)
   return toolbar;
 }
 
+static void
+gnc_get_reconcile_info (Account *account,
+                        gnc_numeric *new_ending,
+                        time_t *statement_date)
+{
+  if (xaccAccountGetReconcileLastDate (account, statement_date))
+  {
+    struct tm *tm;
+
+    tm = localtime (statement_date);
+
+    tm->tm_mon++;
+    tm->tm_isdst = -1;
+
+    *statement_date = mktime (tm);
+  }
+
+  xaccAccountGetReconcilePostponeDate (account, statement_date);
+
+  xaccAccountGetReconcilePostponeBalance (account, new_ending);
+}
+
 static gboolean
 find_by_account (gpointer find_data, gpointer user_data)
 {
@@ -1372,19 +1395,20 @@ recnWindow (GtkWidget *parent, Account *account)
     new_ending = xaccAccountGetBalance(account);
 
   /* The last time reconciliation was attempted during the current
-   * execution of gnucash, the date was stored.  Use that date if 
-   * possible.  This helps with balancing multiple accounts for
-   * which statements are issued at the same time, like multiple
-   * bank accounts on a single statement.
-   */
+   * execution of gnucash, the date was stored. Use that date if
+   * possible. This helps with balancing multiple accounts for which
+   * statements are issued at the same time, like multiple bank
+   * accounts on a single statement. */
   if (!last_statement_date)
-     statement_date = time(NULL);
+     statement_date = time (NULL);
   else
      statement_date = last_statement_date;
 
+  gnc_get_reconcile_info (account, &new_ending, &statement_date);
+
   /* Popup a little window to prompt the user to enter the
    * ending balance for his/her bank statement */
-  if (!startRecnWindow(parent, account, &new_ending, &statement_date))
+  if (!startRecnWindow (parent, account, &new_ending, &statement_date))
   {
     gnc_unregister_gui_component_by_data (WINDOW_RECONCILE_CM_CLASS, recnData);
     g_free (recnData);
@@ -1750,6 +1774,9 @@ recnFinishCB (GtkWidget *w, gpointer data)
 
   account = recn_get_account (recnData);
 
+  xaccAccountClearReconcilePostpone (account);
+  xaccAccountSetReconcileLastDate (account, date);
+
   if (auto_payment &&
       (xaccAccountGetType (account) == CREDIT) &&
       (gnc_numeric_negative_p (recnData->new_ending)))