CenterPoint Accounting - Balance Sheet Adjustments

Balance Sheet Adjustments Video - Duration: 8 min 34 sec

This screen allows you to see balance sheet accounts on a grid with current balance information (quantities and book value) and update the values creating a transaction for the difference.

Select Processes > Periodic > Balance Sheet Adjustments.
Select the appropriate Company. The default company will display and the selected company can be Set as Default by right-clicking.
Select the Default Offset Account. All postable accounts will display in the lookup other than an AP, AR, Payroll Liability, Credit Card Liability or inventory accounts.
In the Transaction Type box, select either General Journal (Accrual) or General Journal (Cash/Accrual). Normally the General Journal (Cash Accrual) would be selected. In certain industries where an entry is needed that does not affect a cash income statement, the user would select the General Journal (Accrual) type.
- General Journal (Cash/Accrual) transaction types might be used to identify transactions that are intended to correct or reclassify previous entries. If, for instance, you had previously entered several transactions that increased the value of a fixed asset only to find that your accountant felt they should have been entered as an expense, you could assign this transaction a transaction type of General Journal (Cash/Accrual).
- Since many reports in CenterPoint can be filtered by transaction type, this gives you the ability to include or exclude these cash/accrual transactions on various reports. Your tax reports are prepared using a user-defined report. You could choose to include General Journal (Cash/Accrual) transactions for some or all accounts and choose not to include other General Journal transactions. This would affect your tax reports, your cash basis Income Statement, and your General Tax Summary reports. You can also use the filter tool in Transaction Search to find transactions by transaction type displaying only transactions that were assigned the transaction type of General Journal (Cash/Accrual).
The Balance Period displays the current period of the system date. Select the appropriate balance period.
In the Transaction Date box, the end of the month of the current system date displays. To change the date, click the Calendar icon or press F4 and select the date of the transaction or enter the date (the system will assume the month and year are the same as the workstation date unless otherwise specified.)
In the Starting Transaction Number box, a sequence number will be assigned automatically. You can also select a sequence number. This is optional information for General Journal transactions.
In the Account Type box, select one of the Balance Sheet Account types; Assets, Liability, or Equity account types that limits the display in the grid.
Optionally, select an Account Category to limit the display in the grid.
If the check box to Display accounts with non-zero balances is checked, only accounts active for the company with non-zero balances are displayed. If the box is unchecked, only accounts active for the company with or without a balance in the period are displayed.
If you want to Include fixed assets and inventory items or Auto-reverse entries in the next month(each entry creating a transaction in the specified period makes an equal but opposite entry in the next period), click the Options button and select either option. The options selected will be remembered the next time the Balance Sheet Adjustments menu is selected.
Click Select Accounts to fill the grid with accounts that have a balance for the company within the balance period. The account and each production information combination are filled individually according to the subledger detail set for the account category. The amounts displayed on the screen are ending book value amounts taken from account balances for the period identified on the form.
Click on the Account or Offset Account (displays the account set at the top of the screen) lookup and edit or add a new account. If the account is edited or created to an account type and category that is not currently selected it will not display and the line will be removed.
You may change the account and/or production information on rows that are created but have no balances and rows that are added.You may not change the account or any production values on rows that currently have balances.
Click the Post Adjustments button to create adjustment transactions. Each line on the grid where the current values differ from the adjusted values creates a separate transaction in one batch of transactions with the batch comment "Balance Sheet Adjustments - [Transaction Date]. The transaction amount and the amount for each journal entry will be the difference between the current ending book value for the account in the period identified on the form and the adjusted values on the line.
The adjustment transactions can be viewed and edited in the Processes > General Journal Entries screen.