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Fixed Asset Manager message: The Journal Entry is out of balance

When you view an asset placed in service in the same fiscal year as Fixed Asset Manager (FAM) is currently in, FAM displays an incorrect dollar value on the asset tab for prior depreciation. This corrupts the depreciation figures, and can result in the following message:

The Journal Entry is out of balance. The Debit and Credit totals must be equal.

You may also see this error if you select Post Entry to QuickBooks (to post a journal entry from FAM).

Why this is happening

The Accumulated Depreciation account in QuickBooks must equal Prior Depreciation in Quickbooks FAM.

If an asset has been tracked in QuickBooks and QuickBooks FAM from the time it was acquired, this journal entry should be in balance.

Typically, one of the following situations causes this error:

  • The asset was entered in QuickBooks FAM mid-life without entering previous accumulated depreciation from its acquisition date.

Example: An item was purchased and entered into the Fixed Asset Item list in QuickBooks Pro (which does not have QuickBooks FAM). The file is then used in QuickBooks Premier Accountant by the company's accountant in order to calculate asset depreciation. If FAM is opened without first creating a correcting journal entry in QuickBooks, then FAM will read $0 as the amount of accumulated depreciation for that asset.

  • In QuickBooks FAM, the calculated amount for prior depreciation was changed.

Example: FAM is rolled back to a previous fiscal year (possibly due to printing a report for that fiscal year). This can cause any value in the prior depreciation field to remain the same number it was prior to changing the dates.

  • If the asset is marked as disposed and the asset value and accumulated depreciation value has not been cleared in QuickBooks.
How to fix it

Intuit recommends 2 solutions for this problem. For best results, please try solution 1 first. If solution 1 does not resolve your issue, then try solution 2.

 

If these solutions don't resolve the issue, you can read discussions and post messages and questions relating to your issue on the Intuit QuickBooks Community site for free. You can contact an agent for additional guidance. Fees may apply.

KB ID# SLN40873
12/20/2014 5:07:40 PM
QYPPRDQBKSWS04 9102 Pro 2013 ee847b