How to reconcile undefined differences in the Balance check when the Net Income per IS doesn't equal NETINC account

Published: 16/05/2023

How to reconcile differences in the Balance check when the Net Income per IS doesn't equal NETINC account. When the IS doesn't equal NETINC account, the below will display:

Instructions:

Before attempting to balance the financial statements, you should first the the following 3 things:

The Information Store is completed
The Working Trial Balance balances
All the accounts have been mapped

If your Caseware Working Papers file has been rolled forward from the previous year and there are new accounts to be mapped; the latest template will show this on the balance check.
To see these accounts and map them, double-click on the red triangle. This will take you to the Assign Mapping Numbers screen.

Now that your Trial Balance is fully mapped, navigate back to CaseView to go back to your Financial Statements. The Financial Statements will be recalculated and the balancing difference from unmapped accounts will disappear. Follow the recommended steps below to balance each of the indicators on the balance check.

Net Income per the Income Statement not equal to NETINC account

This difference occurs when an Income Statement account has been mapped to the Income Statement but the class field has not been populated. This can happen with an outdated mapping number where the account appears as being mapped but because the template does not recognise the number, it cannot auto fill the other account properties. It will assign it as “unnamed mapping” and not know to classify it in the Income Statement, preventing it from pulling through.

These accounts need to be remapped to mapping numbers that the template recognises.
Note: This procedure may affect the cash flow balancing.

In your Caseware Working Papers file, you will navigate to the Working Trial Balance in the top left hand side of the Document Manager.
In the Navigation Bar click on Trial Balance.
Once the Working Trial Balance appears you will then click on the Settings button.