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How do I reconcile General Ledger if it is out of balance?

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Summary

This article provides steps for reconciling the General Ledger.

Description


Cause


Resolution

Note: If you are reconciling by Entity or General Ledger Prefix, add conditions to your reports for that prefix.

 

  1. Review the Current Ledger:
    1. From the General Ledger Reports menu, select Current Ledger. Click Print Preview.
    2. Look at the grand totals on the last page.
    3. Tip: Press End on your keyboard twice to skip to the last page.
    4. Your ledger is in balance if your grand totals show the following:

      Beginning Balance

      Debits/Credits

      Ending Balance

      .00

      Debits = Credits

      .00

  2. If your ledger shows anything other than the above, you are out of balance. Continue with the next step.
  3. Compare your grand totals with the table below:

    Beginning Balance

    Debits/Credits

    Ending Balance

    Option

    Any

    Debits not equal to Credits

    Any

    Option 1

    Not .00

    Debits = Credits

    Same as beginning balance

    Option 2

    Any

    Debits = Credits

    Different from Beginning

    Option 3

  4. Continue to the correct option below.

Option 1: Debits not equal to Credits:

Option 2: The out of balance situation has carried forward from a prior period.
Print your Year-to-date Ledger for prior periods until you find the out of balance period:

  1. From Reports, select Year-to-date Ledger.
    • Note: If you use both cash and accrual accounting, select the accounting method. Click OK.
  2. Select the Modify date range check box. Enter the first and last day of your prior period.
  3. Click Print Preview. Look at the grand totals on the last page of your report.
  4. Repeat these steps for each prior period until you find a period that has a beginning balance of zero and then check the table below:

    Beginning Balance

    Debits/Credits

    Ending Balance

    Option

    .00

    Debits not equal to Credits

    Difference of debits and credits

    Option 1 (above)

    .00

    Debits = Credits

    Not .00

    Option 3 (below)

    .00

    Debits = Credits

    .00

    Option 4 (below)


Option 3: The activity of the General Ledger master file does not match the transactions in the transaction file:
Look for accounts that appear on your ledger with exclamation points (!!) next to the ending balances. See Double exclamation marks (!!) appear on the Year-to-date Ledger in General Ledger (Start date on ledger is too far in the past) and Double exclamation marks (!!) appear on the Current Ledger or Year-to-date Ledger in General Ledger (activity field on account record does not equal transactions)
Option 4: Ledger is in balance in the prior year.

Other Options:

  • Verify your closing entries and your retained earnings balance. See The current balance for my retained earnings account is incorrect
  • A current balance field (Setup, Accounts, Balances) or another General Ledger account field is incorrect due to audit setup activity or because the General Ledger application ended unexpectedly. Contact customer support for assistance.


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´╗┐Balance sheet or trial balance appears out of balance