The Balance Sheet shows the Assets and Liabilities at the start and the end of a period. This enables you to see the net worth (Assets - Liabilities = Net Assets) of the business.
It also gives a 'double check' in that the difference between the opening (start) and the closing (end) Net Assets should be the same as the Net Profit made (Allowing for Other Income and Other Purchases which are not shown on the Profit and Loss).
When a Difference is shown
There are some situations than can occur which can show a 'Difference' on the Balance Sheet.
•A Sales Transaction with a Payment Date before the Invoice Date which does not allow Evopos to calculate the Debtors correctly
•A Purchases Transaction with a Payment Date before the Invoice Date which does not allow Evopos to calculate the Creditors correctly
•A Unit Sales Details with a Sold date before the Purchase date which does not allow us to calculate the stock at a specific time
•An un-balanced transaction which has one part of it missing. This could be caused by a computer fault, power failure or a bug in the program
With the Date Issues, later versions of Evopos prevent you from entering a Payment Date before the Invoice date.
To correct any difference please use the following steps:
•Select Accounts / Maintenance / Check-Fix Data, and confirm a date at least 1 month earlier than the period start, and print or save the list of issues Fixed and Issues ToDo
•From the Issues ToDo list find any Sales Transactions where the Payment date is before the Transaction date. You only really have to do any ones that span the period start or end. To change, select Accounts / Sales / Payments, search for the Payment Number and change the Paid date on all entries to the latest transaction date. For example if the Period start is the 1st July and there is an Invoice date 14th July and Payment date of 9th June, then change the Paid date to 14th July.
•Do the same with any Purchase Transactions where the Payment date is before the Transaction date and change in Accounts / Purchases
•Then Rebuild the Nominal by selecting Accounts / Nominal (Ensure the correct year is selected) / Rebuild
•Then run the Balance Sheet and note the amount if there is still a difference
•If there is still a Difference it will most likely be an unbalanced entry in one of the In-Hand Balance accounts (01-09-??), especially the In-Hand-Contra (01-09-04) account. If you are doing In-Hand Accounts that are normally Banked, first make sure the Bankings have been reconciled on your Bank Account. Select Accounts / Nominal / select the appropriate year / highlight each In-Hand account. In an ideal situation each month would be zero as the Bankings would equal the Payments - these we can leave. Sometimes one month would have a positive total and the next month the same but negative total as the Banking was done in the next month these we can also leave. However if we have a period that obviously does not balance to zero, rather than finding each entry we can create a single sided entry for that period to fix it. To do this, if for example we had a amount In-Hand-Contra in May, we would create a Journal from In-Hand-Contra to In-Hand-Contra for that amount dated in May, then we can go into Accounts / Sales / Payments, set to Paid and sort by Payment No descending so the journals just entered are at the top, then if the amount was positive we would delete the positive entry, or if it was negative delete the negative entry. Then rebuild the nominal before re-producing the Balance Sheet.
•If you do want to check the individual entries on the In-Hand-Contra account you can select the Transactions tab, select the Month, click on the Amount Header Sum icon and select 'Sum', then drag the Contact Name header to the 'Group By' box. This highlights the Contacts that do not total to zero very clearly.
•The above will normally fix the 'Difference' exactly, however if there is a small amount still left we can create a new nominal balance account (01-08-??) called something like 'Clearing Account', and then create a single sided entry for that period to fix it. To do this, create a Journal from Clearing Account to the Clearing account for the amount of the 'Difference', then we can go into Accounts / Sales / Payments, set to Paid and sort by Payment No descending so the journals just created are at the top, then if the 'Difference' is positive we would delete the negative entry, or if the 'Difference' was negative delete the positive entry. Then rebuild the nominal before re-producing the Balance Sheet.