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For the 1st time in 25+ years with SL I've encountered something I have never seen before! My trial balance is in balance specifically the balance sheet but the YTD Net Income account balance is incorrect. When I calculate the true net income for the month it doesn't match the system generated net income for the month. How can this be? Better yet, how do I fix it? Any change to that account will put the balance sheet out of balance.
Help!
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This was month 8. All prior months were fine. And month 9 is fine also. The beginning balance was zero too. I also never like to not know how something happened when I apply a do-it-yourself fix. There's no clean audit trail here. Like I said before, this is a new one on me.
Thanks again. I'll let you know how all this turns out.
You were correct that a 1-sided entry would only throw the balance sheet out of balance so you will need to offset it like you suggested.
I do not have another explanation is to how this might have happened (short of using initialize mode to put the balance sheet into balance at some point). I would be curious to see if this occurred just for the current month or now prior months have the same issue. I never like to leave something unexplained. If prior months are now also off then it makes me wonder if this resulted from something during the year-end close process.
When you said you ran a detail GL on account 275, did you do that only for the current month or going way back in time through the current month? If something got posted to a prior year against account 275 then that account could be affected in the current year. Double-check that it does not have a beginning balance for the current year.
You could also look for a transaction that exactly matches the amount you are off (worth a try but rarely are we so lucky).
Rick,
Thanks for responding. Yes, that's what I meant by true net income. I've run a detailed gl on my 275 account (YTD net income) and no other entries except those created by the system. I think that the only thing I can do is to turn initialization mode on and modify the balance in account history. I can reduce net income and offset it in my deferred revenue account which is out of balance anyway. Thought on this?
Thanks!
It would be helpful to know some detail about what you mean by "calculate the true net income". If you mean that you are taking the sum of the income less the sum of the expenses at that is not matching the YTD net income amount in that specific account, my initial thought is that you have a transaction that hit your net income account and the offset account was an asset or liability account. At least the is the first thing I would look for.
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