Accounts

Clear rounding differences

If you've rounding differences in your accounts, take the following steps to resolve them.
  1. Step 1 — Check opening and closing balances from prior period match exactly
    note
    Opening balances rolled forward with the opening balances journal are correct to the penny. There are 2 exceptions: LLPs and charity accounts.
  2. For an LLP, check the opening balances manually.
  3. For a charity account, check the opening balances manually and post as a journal.
  4. If you've imported a trial balance from an external source, then we recommend the following steps:
    1. Export the trial balance for the current and prior periods to Excel.
    2. Check the closing balances from the prior period to make sure they match the opening balances from the imported trial balance.
  5. Step 2 — Set the rounding account
  6. In the client, go to the
    Journals
     tab.
    note
    If the difference is in the comparative period, then select the
    Comparative
     sub-tab on the
    Journals
     tab and make the change to the Rounding Account.
  7. Select the
    Rounding Account
     ellipsis button.
  8. Select the
    Rounding differences
     code, if not already selected.
  9. Select
    OK
    .
  10. Step 3 — Post a small rounding journal
  11. Post a small rounding journal of
    £0.60
     between the profit and loss account and the balance sheet.
    note
    For example, you could use the purchases and other creditors codes, if there's a posting to them already.
  12. Step 4 — Ensure the accounts include journals correctly
  13. Go to the
    Journals
     tab of the client.
  14. Make sure you've marked the checkboxes for relevant journals and that their date is the last day of the accounting period.
  15. If the journals don't have the date of the last day of the accounting period, select
    More
     to either change the date or clear the checkbox.
  16. If these buttons aren't active:
    1. Right-click the journal, then select
      Copy
      .
    2. Right-click under the list of journals and select
      Paste
      , then
      Paste
       again. 
  17. Clear the
    Include
     checkbox for the original journal.
  18. Step 5 — For group consolidated accounts where the company balance sheet is out of balance
  19. In the consolidated entity, go to
    Entity Setup
    , then
    Entity Structure
    .
  20. Select the parent company folder in the
    Entity structure
    .
  21. Mark the
    Round Independently
     checkbox.
    note
    This should be the only entity that you round independently.
  22. Check the other entities in the
    Entity Structure
      and make sure that the
    Round Independently
     checkbox is cleared for all the others.
  23. Step 6 — For partnership accounts where you are not allocating profit fully
    note
    You'll need to set a partner’s account so that any rounding amount of profit split is sent to it. For example, you if  you split profit of £13 split between 2 partners equally 1 partner would need to have £6 and the other £7.
  24. Select the
    Import Account Assignment
     tab, then
    Profit Allocation
    .
  25. Further steps to round account codes, if steps 1 to 6 didn't resolve the problem.
    note
    Small roundings from prior periods may have built up to the point where they appear on the report in the current year. You can use the following steps to round an account code independently.
  26. Go to
    Financial Period
    .
  27. Select
    Configuration
    , then
    Accounts
    .
  28. Find and select the account code from the list.
  29. Select
    Edit
    .
  30. Mark the
    Round Independently
     checkbox.
  31. Select
    OK
    .
    note
    If you round
    499.00
    ,
    999.00
     and
    Suspense
     independently you may find this resolves the issue, especially if
    Suspense
     has a value of
    0.00
     in the trial balance.

This article applies to:

  • PRODUCT: Digita Accounts Production Advanced
  • Subject: Journal entries

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