Final Year End Process - Error: Balance in accounting currency for assets and liabilities must be equal to zero
We are running into issues running the final year end process where the system is claiming assets don’t equal liabilities. We have run GL Balance Analysis showing that they do in fact balance:
I know that in some other topics they have mentioned to clear revenue/costs before running final year end. Looking at the process flow this isn’t a required step:
What could we be missing? This is happening in a lot of companies where we brought over opening balance sheet and retained earnings balances mid year.
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Hi,
At year end all profit must be moved to the balance sheet meaning assets, liabilities, and equity. In doing this Cost-Rev will equal 0. Also balance sheet will also total zero.
In your image all accounts in total are 0, that should always be true. The difference is at year end P&L must = 0 and balance sheet must be 0 as well.
You have options when moving profit to the balance sheet (clear profit). The process is not optional, just the way you do this has options.
Some clients use the IFS function to clear profit / rev. Other clients use the following: they create a manual voucher that affects a P&L account and equity. Net concept is all profit (or loss) is moved to equity. For easy reporting, my preference is always a simple manual journal entry.
You must clear the profit and move the value to equity (balance sheet) before doing the final year end.
How you do it, has options.
Best regards,
Thomas
Hi,
At year end all profit must be moved to the balance sheet meaning assets, liabilities, and equity. In doing this Cost-Rev will equal 0. Also balance sheet will also total zero.
In your image all accounts in total are 0, that should always be true. The difference is at year end P&L must = 0 and balance sheet must be 0 as well.
You have options when moving profit to the balance sheet (clear profit). The process is not optional, just the way you do this has options.
Some clients use the IFS function to clear profit / rev. Other clients use the following: they create a manual voucher that affects a P&L account and equity. Net concept is all profit (or loss) is moved to equity. For easy reporting, my preference is always a simple manual journal entry.
You must clear the profit and move the value to equity (balance sheet) before doing the final year end.
How you do it, has options.
Best regards,
Thomas
Thank you for this. I have tried to run the Clear Revenue/Cost Balances process but am getting hung up when it needs a voucher type. I am not sure where I need to get this mapped in the set up so it’s got a selection for me:
Hi
That’s one of the reasons why so many clients do a simple manual voucher. That and they get the exact results they want. No set up required. It always works.
You're missing some set up, / have set up issues. This forum has many posting that include screen prints of the set up your missing. That set up would need to be done for all the companies.
