Postings don’t balance when entering a Journal.

Legacy KB ID: 5323

Question

Why do I get an error message across the top of the screen saying:

Postings don’t balance. Total debits = $1050.00 Total credits = $1049.99

but the Debits and Credits columns of the Journal show the exact same amount?

 

Answer

This issue is a rounding error that occurs when amounts are entered in a Journal entry set to Net and contains a GST component that has a 5 in the 3rd decimal place (.xx5).  The amount of tax is rounded down to the nearest 2 decimal places and not up, creating a rounding error.

 

Workaround

Step 1 – identify transactions contributing to the balance error

1.    Take a screenshot of the (Net) journal entry with the error

2.    In the Amounts box, change the setting from Net to Gross

3.    Take a screenshot of the (Gross) journal entry

4.    Now look at the Debit/Credit column on the original Net journal entry for amounts that end in .x5 cents

5.    Add the Amount to the Tax Amount and check the gross total against the amount for this transaction on the Gross journal entry

6.    Identify each transaction until the difference amount is accounted for.

 

Step 2 – correct identified entries

1.    Settings > Tax Settings > General

2.    In the Allow users to section tick the boxes:

a.    Edit tax amounts

b.    Choose if amounts include tax

3.    Go to the Journal entry (and set to Net)

4.    Increase the tax amount by 2 cents (double the error) and tab out of the field.  The Tax Amount field will highlight

5.    Decrease the tax amount by 1 cent (bring it to the correct amount) and Save the Journal.

6.    Repeat for each entry contributing to the balance error.

The journal entry will now balance. 

 

 

Need more help?
Ask the Reckon Community at: https://community.reckon.com/reckon.

 

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