One Sided Posting

  • 21 January 2022
  • 9 replies
  • 268 views

A conversion was completed from another software product.  For some reason after validating the entire 

process we know what the number is and it matches the difference between the balance sheet and income statement to balance it. It belongs in retained earnings and all other balances are matched against the GL ledger from the old program.  

I need to make a one sided posting to that account or an adjustment account to sum to that grouping for the amount in question which balances the assets and liabilities and completes the transition.

I have been unable to find a methodology


9 replies

Userlevel 7
Badge +9

Hi @ASarkisian35 , You can use the Trial Balance screen to upload the entire balance with the credit and debits matching.

Note: Please test in a test instance and perform the changes. Below are the key points of the “Trial Balance” transaction screen in Acumatica:

The trial balance “Release” action creates an adjusting batch that does the following:

  • Sets to zero the balances of all account-subaccount pairs (available in the ledger before import) for which no data was imported.
  • Updates the balances of other accounts (and subaccounts if applicable) to match those in the imported trial balance data.

Thanks

Userlevel 7
Badge +11

Hi @ASarkisian35 

Since you mentioned that the initial balances were imported, here is what I would suggest :

-Run Trial balance report as on balance transfer date (period start/end) in Acumatica

-Compare the same with the Trial balance on your old system as on same date

​​​​​​​-If details are same on both reports, there should not be a difference

-Else, you can reimport the trial balance as on that date, which should just update missing accounts (screenID:GL303010).

Hope this helps,

Regards,

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Just to actually address the original question: You need to do a Journal entry Debiting / Crediting the Income statement and Crediting / Debiting the Balance Sheet. This should be done in a prior period, so that the Net Impact on Retained Earnings is brought through. It actually indicates an error (over or understatement on prior period results). No system should allow a one sided entry.

Userlevel 7
Badge +9

Hi @Jp89 Direct Journal Entries requires - Debit and Credit to be matched. Per your approach, adjusting the Retained Account requires another income/Expense account for creating the journal entry.

Hence to adjust only the Retained earning Account, per my post above, going with Trial Balance would be the easier to change this.

Thanks

 

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Against all principles ! Thanks

Userlevel 7
Badge +9

Hi @Jp89 Referring to the original requirement by @ASarkisian35  - “A conversion was completed from another software product.  For some reason after validating the entire “ . This adjustment to the retained earning is just an initial load of the Trail Balance from another system.

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Hi @Jp89 Referring to the original requirement by @ASarkisian35  - “A conversion was completed from another software product.  For some reason after validating the entire “ . This adjustment to the retained earning is just an initial load of the Trail Balance from another system.

https://community.acumatica.com/members/chandrasekharm-147

The original system obviously did not balance properly if a single sided adjustment is required to the Retained Earnings. (Assuming all the balances agrees to the old system, which may / may not balance properly). An initial load should mean Debits = Credits and sum to ZERO, but if the Retained Earnings needs an adjustment, then so does another account (either Balance Sheet, or Income statement - prior period or at date of Data Load!

Userlevel 7
Badge +9

Hi @Jp89 A transaction either an adjustment to the Asset Account or to a Income/Expense Transaction, with the liability account(Retained earnings) will help. But this requires double entry instead of single entry.

I would suggest @ASarkisian35 to elaborate how the balance of only Retained Account is out of track.
 

Thanks

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Retained Earnings is actually not a Liability account - but an Equity account (Owners Equity). A = O + L and for this reason you should not be able to POST to such an account (it is the Net of the Income Statement) that causes the "Balance Sheet" to Balance for the "Trial Balance" (as a test for balancing) to actually Balance. Therefore I again strongly re-iterate that NO one-sided posting should ever be allowed if the system is to maintain good control over accounting records. 

 

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