Prior to calculating Profit/(Loss) for a Financial Year, Simple Invest runs three checks that are visible in the image below.
1. Profit/(Loss) for the current year has not been allocated. Click on Create Profit/(Loss) allocation journal to allocate.
This is a check to see if Income - Expenses = Allocated amount. This is the sum of all income accounts - the sum of all expense accounts. This figure needs to be allocated to an allocation account.
Select the Create Profit/(Loss) Allocation Journal button to allocate the unallocated figure and rectify the issue.
2. Entries to the suspense account range have been detected in the current financial year. Please match or remove these transactions prior to closing the period.
This is a check to determine if the net balance of suspense accounts in the 90000 range is an amount other than 0.
To remove this check, you would first need to establish which suspense account has an outstanding balance. This can be done by accessing the Trial Balance and reviewing the accounts in the 90000 range.
Hover the cursor over Reports from the Main Toolbar and select Trial Balance
Scroll to the bottom of the report (90000 range) and locate the suspense account with an outstanding balance.
Navigate to the Transaction List and allocate the outstanding balance to an appropriate account. (Below is just an example)
Once the outstanding balance has been allocated and the net of the 90000 range account is 0, then the check will no longer appear.
3. Balance sheet does not balance, review the balance sheet prior to closing the period.
This is a check to determine if the balance sheet (Statement of Financial Position) balances. This check will typically display when the other two checks are displaying as well.
There are three reasons that cause this check to occur in Simple Invest.
- If the Profit/(Loss) is not allocated. Refer to Check 1.
- If a suspense account is out of balance. Refer to Check 2.
- If the transaction list is out of balance.
Once the cause of the imbalance has been located and rectified, the check will no longer appear.