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Bal. Sheet/Inc. Stmt. Net Inc. Not Balancing

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  • Bal. Sheet/Inc. Stmt. Net Inc. Not Balancing

    My net income on the income statement does not match my balance sheet and hasn't for a couple of years, and the error is unknown. The accountant told me to make a one-sided entry to correct the problem, but how is that done in Peachtree? - I've never done one before.

  • #2
    I've had that problem more than once and it's usually been a matter of formatting. I would start by determining the difference between net income on the income statement and net income on the Balance Sheet. Then I would look at all the General Ledger YTD totals and look through all the accounts from the 1st Income account through the last Expense account, for an account with that amount. If it is more than one account then it will be more difficult to locate. It is possible a new account(s) got added outside the range of formatting.

    The problem may be that the formatting of the Balance Sheet skips or doesn't include an account that has been added or even more than one.

    I did have an issue a few years ago when a client somehow deleted an outstanding invoice from a prior year. To make her Balance Sheet balance I had to add an account outside the formatting range and it always showed up at tax return time. NEVER, NEVER DELETE!! Always do a credit memo. Do your Accounts Receivables & Accounts Payables reports match the balance Sheet?


    • #3
      My A/P and A/R do balance my Balance Sheet. Everything balances except for the net income. An invoice being deleted from a prior closed year may be the problem. However, I'm not sure what you mean about creating an account outside of the formatting. Could you please explain what that entails, thanks.


      • #4
        Check your General Ledger Trial Balance and make sure debits equal credits. If not you need to open the General Ledger Report that shows all transactions and for a time frame of all, to check if you get errors opening the report. If you get no errors on the second report, but the trial balance is out of balance then you need to run an integrity check called GL Balances. If you get footing errors on the second report you need to contact a support center to further check your problem.
        Tom Sechler
        Sage Certified Consultant