At the bottom of the Trust Account Reconciliation report, you may see the words "system out of balance" if you do, STOP.
This does NOT have anything to do with your bank balance, which may be fully in balance. What it means is that the Trust account balance does not agree with the bank balance minus the unpresented total.
Work out the amount that the system is out by:
Take the closing balance
Add the receipts
Minus the payment
It should add to the Closing balance in bold.
If it does add up then you are looking for something unallocated
If it does not add up then you are looking for a balance in one of the ledgers.
1. Run a System check by going to Monthend procedure and click on the first step. Then exit the monthend procedure, and check the REINZ again.
2. View the Archived properties and reinstate any that have a non-zero balance
3. View the Archived creditors and reinstate any that have a non-zero balance
4. View the historic reports and check the Institute return for each month to establish when the out of balance occurred.
5. Go to the Ledger area, Using the Bond Tribunal Ledger and any fees ledgers, run them from the year 00 and check that the report balance is the same as the Ledger Fees ledger.
6. In the month that is out of balance, view the unpresented report from the previous month, and check that all entries show in the next month either in the Presented report OR in the Unpresented report. (So if an item was un-presented one month, by definition it must appear in the following month's report)
7. If it does not appear anywhere in the following month's presented or un-presented report, but it was in the previous month's un-presented, locate the transaction in history and un-present it.
8. In the month that it went out of balance, view the Presented report from the previous month, and check that NO entries show in the next month either in the Presented report OR in the Unpresented report. (So if an item was presented one month, by definition it cannot also appear in the following month's reports)
9. If it DOES appear anywhere in the following month's presented or un-presented, but it ALSO was in the previous month's presented, then it can mean that the same entry was used to balance two different month's ! The bank statements will need to be checked to see if that amount came in, in both months and a new transaction may need to be entered.
10. Check that the total of all owner balances on the owner list screen, agrees with the total of all property balances on the property list screen and that these agree with the Ledger account called Owner Control Account.
11. Check that the total of the Creditors balances on the Creditor list screen agrees with the ledger account called Creditor Control Account.
12. Right click ledger accounts that have been added by the user and run a details report for the whole period they have transactions (1/1/2000 to today) Check that the total on the report agrees with the ledger balance.
13. Search for a creditor invoice with the amount that is out of balance (You can preview the Audit report for Invoices and use the search function). If you find one, locate the creditor. Run a full transactions report to confirm the creditor total agrees with the creditor current balance. If it is archived, reinstate it.
14. For the last two items, you may need a tech person to re-establish the account balances.
- Setting and Managing Batches for Payments and Receipts
- Bank Reconciliation
- Not Reconciling - Out of Balance
- Bank Reconciliation Reports