The Verify Client /Matter and G/L Balances report is used to verify that your client and G/L transactions are in balance. This report checks for an imbalance between the general ledger control accounts and the client ledgers, and between the general ledger debits and general ledger credits.
When a transaction is entered for a client or matter the software automatically updates the appropriate general ledger accounts. For example, when you enter a trust check the Client Funds in Trust Liability account is debited and the trust bank account is credited. If a transaction such as a journal entry is entered incorrectly or if an error occurs when you are entering a transaction, the client/matter ledgers or G/L may be updated incorrectly. This discrepancy will display on the Verify Client/Matter and G/L Balances report because the general ledger total will no longer equal the total for the client/matter ledgers. The report will display a message indicating accounts are out of balance and will show you the account where the problem lies.
Likewise, if an error occurred while the general ledger was being updated, the amount debited may not equal the amount credited. The report will also indicate this with the message “General ledger is out of balance” and will display amount it is out of balance by.
What to do when the report indicates a discrepancy
The steps below serve as a guideline to help you determine where the problem may have occurred. You should not enter correcting journal entries unless you understand how the entries will affect your client/matter and G/L balances.
- Determine when you were last in balance and then focus your investigation on transactions entered since that time.
- Review any automatic journal entries to determine the type of entries that may have affected the account or accounts that are out of balance. For example, if a trust bank is out of balance you will need to review trust checks, trust receipts and trust transfers to pay bills.
- When you have determined the types of entries that affect the out-of-balance accounts, review all audits of that type that have been entered since the software was last in balance. Look for an amount related to the account that is out of balance. It is helpful to view the Transaction Listing by Audit report when looking for accounts that are out of balance.
- When you find an audit that you believe is related to the problem, determine if the audit updated the general ledger by viewing the Transaction Listing by Audit report for the specific account that is out of balance. Look for the audit number.
- Determine if any clients or matters were updated by checking the client details for the audit number.
- If any clients/matters were updated but the general ledger was not, create a journal entry in the general ledger specific to your audit and to any automatic client/matter journal entries.
- If the general ledger was updated but the clients/matters were not, create a journal entry to reverse the transaction out of the general ledger, and then re-enter the audit.
If you are unable to resolve the discrepancy
Please contact sales or support.