BALANCE SHEET DOES NOT BALANCE

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

DESCRIPTION         How Do I Handle My Balance Sheet That Does Not Balance?

1. WHY IS THIS A COMMON TRANSACTION?

When user start using the system, it is allowable to begin without an Opening Balance, which are inputted after an audit is done. When these opening are not entered correctly, the current year balance sheet will be out of sync.

In other cases, the setup of Chart of Account or Report Layout are not done properly, and could result in the system reporting missing bits of information.

2. CHECK THE DATA

DIAGNOSTICS FOR ERRORONEOUS TRANSACTIONS - Run Diagnostics to flag out erroneous transactions; either not posted properly or incomplete transactions when user exits the system half-way through a transaction:

• Go to Systems - Diagnostics - Unbalanced Transactions
• Go to Systems - Diagnostics - Error Transactions
• If there are any listed by the Diagnostic, click to Re-Save these erroneous transactions

3. RUN THE TRIAL BALANCE REPORTS

Run the Trial Balance (By Year/Period) report again. This report shows balances as at specific period, and reflects closing balances as per what the Balance Sheet should show. If the problem is resolved, then issue closed. 

If the Trial Balance is still not tied,

• Isolate from which month the out-of-balance is occurring. Supposing you are in Dec 2022, select Year = 2022 and Period = 1. See if there are any unbalances from this period. Pay particular attention to your "Previous Balance" amount. It should be zero. 

If it is not zero, then you had not perform the Year Ending function yet. The P&L from previous year (2021) that is not transferred to retained Earnings, will cause the Trial Balance to be unbalance in the current year.

CORRECTION: Proceed to do the Year Ending option for the previous financial year. In this example, do for Year = 2021 and the system will convert the past year P&L into a Retained Earning account. Your current year Trial Balance will then tie up.

CAUTION: Once the Year Ending (GY) transaction is completed your accounts for the year ended will be locked up for good. You are not allowed to edit or change anymore data. To do that will involve restoring the backup on the day you perform the Year Ending, which means transactions entered from that date must be re-entered. 

• Once the Trial Balance is tied, the Balance Sheet Report should be correct now.

4. RUN THE DEFAULT BALANCE SHEET REPORT

If the Trial Balance is tied, then you may run the default balance sheet in the system. 

These basic reports should be tied. However, the default layouts are simply depiction of Total Assets versus Total Liabilities. It does not have the formatting that you may be accustomed with, but the results are a direct mirror of the Trial Balance.

To have custom formatting, you may use the Balance Sheet (Classification) Report, which is one customized to the layout of your choice.

5. RUN THE BALANCE SHEET (CLASSIFICATION) REPORT

If your Balance Sheet (Classification) is not tied but the Trial Balance is, then it is a problem with the designing of this layout and the mapping of Chart of Accounts.

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