The Balancing Adjustment feature allows you to directly manage situations where a Balance Sheet report is out of balance, either because the amount out of balance is too small to reconcile or will be reconciled at a later date. This feature is available from the Lines Tools Definition context ribbon which appears when creating, designing, and managing Line Definitions in Prospero.
You’ll use the Balancing Adjustment option when designing a balance sheet row in a Line Definition. For instance, you can calculate the amount and then place it in a user-designated row in the Line Definition.
To create a Balancing Adjustment for your report:
1.) Create or open your existing Balance Sheet’s Line Definition.
2.) Select the row in the Line Definition where you want the adjustment to be noted.
3.) Select the Balancing Adjustment option from the ribbon. The Balancing Adjustments screen will appear.
4.) In the Balancing Adjustment screen you’ll define the Total Asset Row, the Total Liabilities and Equity Row, the Balancing Row and an Adjustment Limit (as a total dollar amount not in excess of $200). Remember that all rows are referenced by their Line Definition Code field value – not by the segment account (i.e. Natural account).
You can check the “Show out-of-balance indicator on report” checkbox if you want to have a visual indicator on the report for the adjustment.
5.) Save your Line Definition and run your report.
When your Balance Sheet report is run, if the adjustment limit is exceeded, you’ll receive a warning message and the row item on the report will appear with a small red block notation. If there are multiple columns on the report, the indicator will appear on each occurrence.
This notation will not appear on printed reports and will be suppressed on the Report Viewer if the “Show out-of-balance indicator on report” is unchecked. Also, you can toggle showing the indicators on the report using the “Show Adjustment Flags” checkbox on the Report View context ribbon.
Lastly, Balancing Adjustment indicators will not appear in Chart View and you’ll only receive the warning message that the adjustment limit is exceeded.
For more information and help with designing your reports, contact MSX Group Support.