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Rounding difference relating to capital/current accounts

Article ID
ias-1407
Article Name
Rounding difference relating to capital/current accounts
Created Date
21st April 2004
Product
IRIS Accounts Production
Problem
The capital/current account carried forward last year does not agree to the figure brought forward into this year. On the Enhanced chart, an error will appear on the exception report.
Resolution
This usually occurs where Opening Balances have been generated by the Software. In the year of Posting, IRIS rounds expenses and Capital/Current Account movements (eg. drawings), then ADDS them together to give the Capital Figures. However, when generating the opening balances into the new year, IRIS rounds the OVERALL TOTAL of expenses to ‘calculate’ the Capital Account Brought Forward. Enhanced Chart The Exception Report error will show the ‘previous year column’ with the carried forward balance, then the current column will show the brought forward balance in account 985/1*1 (assuming that the difference relates to the 1st partner, or to the Sole Trader), and then the difference between the two figures will be shown. To correct the problem, post the Rounding Amount to account 985/1*1 (assuming that the difference relates to the 1st partner or it is a Sole Trader) to make the balance on the account agree to the carried forward balance ‘last year’, then post the other side to a Profit and Loss Account eg. Sundry Account 280. If Problem Persists, contact IRIS Support.

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