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| Q: What do I do when I find Out of Balance Conditions in my Balance Sheet and/or Income Statement? |
A: These are procedures for identifying the cause of out of balance conditions. Please remember that it is your responsibility to find accounting mistakes and DataModes' responsibility to find user or computer errors.
Determine which report is actually out of balance.
1. If the Trial Balance is out of balance (Balance Sheet may be in or out of balance), verify which period(s) is out of balance. If the Trial Balance is out of balance YEAR TO DATE, run the Trial Balance for each prior period until you find where it first became unbalanced.
A. Run a Journal Entry Report for the period that is out of balance, answering "Y" (Yes) to Print Only Unbalanced Journal Entries. If unbalanced journal entries are found, void and unpost them. If necessary, replace any unbalanced entries with good manual entries.
B. If the Trial Balance is still out of balance, run the Reconcile G/L utility for any periods where entries were voided and unposted. Run a trial balance and balance sheet to see if condition is fixed.
C. If there are no unbalanced entries, run the Reconcile G/L utility for the period which is out of balance. Run the Trial Balance again, after reconciling, to see if that fixed the condition.
2. If the Trial Balance is in balance, but Balance Sheet is out of balance, chances are Current Earnings were not posted during a prior month which caused the unbalanced condition. Another possibility would be that an operator went back into a prior period and created entries which impacted an Income Statement account(s).
A. Run a Balance Sheet for each month until you find a balanced month. Then run the Income Statement and Post Current Earnings for each period starting with the first unbalanced period to the current period. Then, run a Year to Date balance sheet and see if it fixed the condition.
B. If the Year to Date Balance Sheet is out of balance but all Month to Date information is in balance, the error lies in the Beginning Balances. You will need to run a Trial Balance for period 0 and review your beginning balances to see which one did not roll over correctly. NOTE: If this situation has occurred, call DataModes Technical Support before making any adjustments to the beginning balances.
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| Information on the web at: http://www.datamodes.com |
| For more information, contact: tech@datamodes.com |
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