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Rounding difference relating to retained profit - Enhanced chart

Article ID
ias-1406
Article Name
Rounding difference relating to retained profit - Enhanced chart
Created Date
21st April 2004
Product
IRIS Accounts Production
Problem
The retained profit last year does not agree to the amount brought forward in the current year and an error is generated on the exception report for a Limited Company on the ELTD chart.
Resolution
This usually occurs where Opening Balances have been generated by the system. In the year of posting, IRIS rounds each expense figure, then adds them together to give the profit. However, when generating the opening balances into the new year, IRIS rounds the overall total of expenses to calculate the profit brought forward. The exception report error will show the previous year column with the carried forward profit, then the current column will show the brought forward profit in account 968/1, and then the difference between the two figures will be shown. To correct the problem post the rounding amount to account 968/1 to make the balance on the account agree to the retained profit last year, then post the other side to a profit and loss account such as sundry account 280.

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