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Trial Balance screen

Correct an out-of-balance chart of accounts

You need to balance all transactions you enter, but your chart of accounts can become out of balance. Follow these steps to correct the problem.

Ways the chart of accounts isn't balanced

There are 3 ways you can use to understand if the chart of accounts is out of balance:
  1. The
    Enter Trial Balance
     screen shows total amounts in red.
  2. Reports (like the General Ledger or Trial Balance - Detailed) show
    *OUT OF BALANCE*
     after the total.
  3. The message
    All periods must be in balance to close the current year
     shows when you try to close the year.

Scenario 1: You imported an unbalanced spreadsheet

Your chart of accounts won't balance if you imported beginning balances from an unbalanced spreadsheet. Use 1 of the following methods to balance your chart of accounts.
  1. Re-close the year, and use the prior year ending balances as the beginning balances.
    1. Select
      Actions
      , then
      Change Posting Period
      .
    2. Select the last period in the previous year, then
      OK
      .
    3. Select
      Yes
       to the message
      One or more accounts are out of balance in the current period. Do you want to continue?
    4. Select
      Actions
      ,
      Change Posting Period
      , then a period in the current year.
    5. In the 1st year end close window, clear the
      Zero account balances
       checkbox.
    6. Complete the year-end close process. Make sure that your chart of accounts is in balance.
  2. Re-close the year and zero the beginning balances.
    1. Select
      Actions
      , then
      Change Posting Period
      .
    2. Select the last period in the previous year, then
      OK
      .
    3. Select
      Yes
       to the message
      One or more accounts are out of balance in the current period. Do you want to continue?
    4. Select
      Actions
      ,
      Change Posting Period
      , then a period in the current year.
    5. In the 1st year end close window, clear the
      Zero account balances
       checkbox.
    6. Complete the year end close process. Make sure that your chart of accounts is in balance.
  3. Manually edit the beginning balance for any accounts with an incorrect balance.
    1. Select
      Actions
      , then
      Enter Trial Balance
      .
    2. Find an account with an incorrect balance in the
      Beginning Balance
       column or the
      Unadjusted Balance
       column.
    3. Select the incorrect amount, then enter the correct amount.
    4. Repeat the previous step for any other accounts with incorrect balances.
    5. Make sure there are no more out of balance indicators displaying in the total row.

Scenario 2: Amounts were manually updated in
Enter Trial Balance

You can change an account's beginning or unadjusted balance on the
Enter Trial Balance
 screen. The application doesn't automatically balance your chart of accounts. Use 1 of the following methods to undo or correct the change.
  1. Find the account on the
    Enter Trial Balance
     screen with an incorrect amount. Change it in the
    Unadjusted Balance
     column.
  2. Find the activity transaction on the
    Enter Transactions
     screen. If a client's chart of accounts is out of balance on the
    Enter Trial Balance
     screen, follow these steps to find and correct the missing account number.
    1. Select
      Actions
      , then
      Enter Transactions
      .
    2. If necessary, select the posting period and journal in the filter fields. To show all transactions for all periods, select Delete to clear all filters.
    3. Select Dropdown menu in the
      Search
       field. Select
      Search Fields
       and make sure you mark
      Account(s)
      .
    4. Enter
      Unassigned
       in the
      Search
       field, then select Search to search.
    5. The application shows all transactions that have 1 or more distributions not assigned to a GL account. Delete the transaction record or note the GL accounts that need a corresponding amount. Update the account on the
      Enter Trial Balance
       screen.
    6. If the Chart of Accounts is still out of balance, generate the General Ledger report.
      1. Select
        File
        , then
        Print Reports
        .
      2. In the Available Reports pane, double-click
        General Ledger
         in the Accounting folder.
      3. Select
        Preview Selected
         to show the report.
    7. Go to the
      Unassigned Account
       section of the report. This section lists all transactions with unassigned distributions.
    8. Find the transaction in the Enter Transactions screen and add the GL account.
    9. Save the transaction record.

This article applies to:

  • Product: Workpapers CS
  • Subject: Trial balance