The Statement of Financial Position (Balance Sheet) does not balance. How do I determine what is causing the imbalance?
The imbalance could be caused by one of the following:
You have not created entries
The message 'Out of Balance - consisting of current year profit/loss not allocated to members' will display all Profit and Loss accounts that have not been allocated by The Create Entries Process
i.e. If you are generating a Balance Sheet as at 30/06/2017 you need to Create Entries to the same date.
The System Journals have been removed
The system journals generated either via The Create Entries Process or when a transaction is recorded can be deleted in the transaction list by users.
- If this is the case, users will need to reprocess the Create Entries Process to generate the system journals again.
- For System Journals that were created when a transaction was entered, and subsequently removed, the original transaction in the transaction screen will need to be re-saved.
Balance Sheet has an out of balance amount of (0)
This will occur where the report is rounded and the out-of-balance amount is less than 50 cents. To see the out of balance amount, generate the report as unrounded, through badge settings.
The Transaction List is out of Balance
If the Transaction List is out of balance, this indicates that there is a transaction where the Debits and Credits do not match.
|From the Main Toolbar, go to Accounting.||
|Select Transaction list||
Scroll down to the bottom of the page to display the Total figures
The first Total amount represents the amount of units recorded from the transactions appearing in this page. The second amount displays the Debits and the third amount displays the Credits.
In this Example, the Debits is $1 more than the Credits amount causing an imbalance.
If the Debit and Credit amounts do not match then there is a transaction that needs to be corrected.
Search the transaction list for the transaction causing the imbalance.
In this Example, there are 2 lines for Bank charges causing the imbalance
Once found, correct the transaction(s) to resolve the issue.
The Transaction List will display up to 50 transactions per page. The Total column will only represent the transactions appearing in the screen at that time. Ensure to view all pages of the transaction list to ensure all the transactions balance.
Member's start date is after the first transaction in the financial year
Simple Fund 360 will allocate Profit/Loss to the member accounts from the Member Start Date.
If a transaction is entered before any of the members' Start Date, the program will not allocate the profit or loss amount associated with this transaction to the members.
To fix this issue, correct the Start Date.
|From the Main Toolbar, go to Member.||
|Select Member list.||
- From the Member List screen, edit the member account.
- Correct the member start date in the Start Date field and select save.
- You will need to reverse and re-create entries for Simple Fund 360 to account for any transactions prior to the original start date entered. See The Create Entries Process for more.
Opening Balances: System start date entered after the start of the financial year
Simple Fund 360 will allocate Profit/Loss to the member accounts starting from the System Start Date.
If the date entered is after the date of a member income or expense transaction (contributions, pension payments) the program will not allocate the profit/loss from this transaction to the members.
To resolve this issue, ensure the System Start Date is entered correctly. Refer to the System Start Date for more information.
Note: Any member transactions recorded prior to the original System Start Date input will need to be re-saved. From the Transaction List, apply the date filter to display the date range prior to the original System Start Date.
Locate the member transactions. Click on each transaction and when in the edit screen, select Save. Re-editing the transactions will produce the Simple Fund 360 member allocation journals that did not originally calculate.
Member transactions have not been allocated
Simple Fund 360 will calculate member allocation journals when member transactions (contributions, pension payments) are posted to the ledger.
View the Trial balance. Compare the amount displaying in the income/expense accounts (in this example 24200) and the amount that is displaying to the member accounts (in this example 52420).
The transactions should display the same amount. If not the either the income/expense transaction(s) information in the more details panel has not been entered correctly (does not match the total amount of the transaction) or the member allocation journal was not created.
Locate the member transactions. Edit and ensure the details are correct. When in the edit screen, select Save. Re-saving the transactions will also produce the member allocation journals that did not originally calculate.
Transaction input after last Create Entries
Any unallocated amounts may be a result of transactions being input into the ledger after the last Create Entries for the financial year has been completed. Any transactions input after the last create entries date will not be accounted for in profit/loss calculations.
To troubleshoot this scenario, re-create entries and re-prepare the balance sheet/statement of financial position. See Create Entries for instructions.
Suspense or Clearing accounts not cleared
The issue could be caused by the fund's clearing accounts not being equal to 0. During the Create Entries process, warnings will appear below in red indicating transactions are not yet fully allocated. Refer to Transaction Matching for steps on how to match outstanding transactions.
Any amounts remaining in clearing accounts will need to be allocated to the correct accounts. Refer to Transaction Matching for instructions.
Note: If transactions have been matched after the last create entries has been completed, the entries will need to be reversed and re-created. See The Create Entries Process for more information.
Migration Journals have been edited
Migration System Journals are automatic journals that occur during the Migration process and should not be edited.
If a user has either edited or re-saved an existing migration journal Simple Fund 360 will treat the transaction as a current year transaction causing the imbalance to occur. BGL Support will be able to revert the journal to it's original status. Please Log a Support Call for assistance.
The Trial Balance does not balance
The issue could be determined if the Trial Balance does not balance. In this instance, compare the trial balance with the General Ledger to determine the difference. If Accounts are missing, add them back.
The writing back of deferred tax was not processed correctly.
A potential cause was the write back for deferred tax being processed incorrectly. For guidance on how to ensure that you have processed the write back for deferred tax correctly, please see the following article.
The relevant account is not linked to the Entity
If a figure should be feeding through to the Statement of Financial Position, however when the report is prepared, the figure does not appear, this could be due to the relevant account within the Chart of Accounts not being linked to the entity.
To check if this is the issue, access the Chart of Accounts and have Entity View toggled (top right hand corner of Chart of Accounts screen). Within this screen, attempt to locate the account that the balance of should be feeding through to the Statement of Financial position. If you are able to locate the account then this is not the issue. If you were unable to locate the account then read on.
From within the Chart of Accounts screen, change the toggle from Entity View to Global View. If you are able to locate the relevant account, then proceed to click on it, which will expand the Edit Other Account menu. Click the Select entities drop-down menu and proceed to add the relevant Entity.
Select save once the Entity has been added. Proceed to Reverse and Recreate entries. Re-prepare the Statement of Financial Position and check if the balance now appears.