SE
SmartEngagement
Working Papers
CaseWare Working Papers
Analytics
CaseWare Cloud Analytics
AnalyticsAI
CaseWare AnalyticsAI
Time
CaseWare Cloud Time
PCR
OnPoint PCR (Preparation Compilation Review)
RCT
CaseWare  ReviewCompTax
PBC
CaseWare  Cloud Provided by Client Requests
SE
SmartEngagement
Working Papers
CaseWare Working Papers
Analytics
CaseWare Cloud Analytics
AnalyticsAI
CaseWare AnalyticsAI
Time
CaseWare Cloud Time
PCR
OnPoint PCR (Preparation Compilation Review)
RCT
CaseWare  ReviewCompTax
PBC
CaseWare  Cloud Provided by Client Requests

Post adjustments to the trial balance

This feature is only available with products on the CaseWare Cloud Engagements platform. Available products include OnPoint PCR, and CaseWare ReviewCompTax.

You can add adjustments to the trial balance accounts or groups.

Post an adjusting entry to the trial balance (Trial Balance page)

You can post adjusting entries to accounts or groups, and include a description of the entry and an annotation.

To post an adjusting entry:

  1. Go to the Trial Balance page.

  2. Select the grouping drop-down menu Type and choose a grouping structure.

  3. Select the Add icon (), then select Adjustment.

    The adjustment dialog opens.

  4. Enter the Adjustment Number.

    Note: The application automatically increments the adjustment number.

  5. Choose an adjustment Type.

    Note: The available adjustment types are based on your product setup.

    Choosing an adjustment type from the Type drop-down menu.

  6. Enter a description for the adjustment.

  7. Under Details, select + Account line to post the adjusting entry to an account, or select + Group line to post it to a grouping.

  8. Select an account or a grouping and enter the adjustment amount.

    If you are making an adjustment to a group in a consolidated file, you must select the entity to apply the adjustment to.

  9. Select + Account line or + Group line to add another account or grouping to balance the adjustment.

    The adjustment dialog displaying all of the information for the adjustment.

  10. Select Save.

Your adjusting entry is posted to the account or group. The trial balance immediately updates with the new values.

Post an adjusting entry to the trial balance (Data page)

This feature is only available with CaseWare ReviewCompTax.

Learn more about CaseWare ReviewCompTax.

You can post adjusting entries to accounts or groups, and include a description of the entry and an annotation.

To post an adjusting entry:

  1. Go to the Data page.

  2. Select Accounts from the left panel.

  3. You can also add adjustments in the FINANCIAL GROUPS view option.

    Note: You can also select TAX GROUPS and PRESCRIBED GROUPS, if they’re enabled in your product.

  4. Select Add () | Add adjustment.

  5. Add the details of the adjusting entry in the dialog.

    1. Enter the Adjustment Number.

    2. Note: If this is not the first adjustments entry, the application automatically increments the last entered adjustment number and displays it in the Adjustment Number field. If this is the first adjustment entry, 1 displays in the field as the default adjustment number. You can override the default.

    3. Choose an adjustment Type.

    4. Note: The available adjustment types in the drop-down are based on your product setup.

    5. Enter a description for the adjustment.

    6. At Details, select + Account line to post the adjusting entry to an account, or select + Group line to post it to a group.

      If the engagement is a consolidation engagement and you choose to,

      • add an account line adjustment, a list of the parent and subsidiaries accounts displays in the dialog.
      • add an group line adjustment, a list of the parent entity groups displays in the dialog.
      • Note that if the adjustment type is Eliminating, you can also post the adjustment for a subsidiary group. Select the entity name to display a list of available entities (parent and all subsidiaries). For more information on adjustment types, see Common adjustment types.

      How to post an adjustment for a subsidiary group in Eliminating adjustments.

    7. Select an account or a group and enter the adjustment amount.

    8. Finalize the entry by selecting + Account line or + Group line to add another account or group to balance the adjustment.

    9. Select Save.

Your adjusting entry is posted to the account or group. The data is immediately updated with the new values.

Common adjustment types

Adjustment types include normal entries, reclassifying entries, uncorrected entries, and tax entries. Here are some examples of the most common adjustment types and a brief description.

  • Normal: Use to update all relevant automatic documents such as journals, ledgers, trial balance, financial statements, and leadsheets. When updating from one period to another, including a year-end close, these entries are transferred from the adjustment column to the opening or preliminary balance column on the trial balance and leadsheet documents.

  • Reclassifying: These are not recorded in the normal accounting records. However, they are recorded in all financial statements and working papers such as leadsheets. When made in any period other than the last period of the fiscal year, reclassifying entries are excluded from the accounting records. In this case, the entries to non-consolidated balances do not have to be reversed.

    Reclassifying entries made in the last period of the fiscal year get included in the next year's opening balances when either of the following choices is made during a year end close: Update next year's opening balance with consolidated or report. Those reclassifying entries then have to be reversed.

  • Eliminating: Use to prepare combinations or consolidations of divisions or companies. These entries appear in consolidated trial balances, leadsheets, and financial statement documents.

  • Unrecorded - Factual: These represent factual misstatements that will not be recorded because of materiality or proposed entries that may be subsequently changed to a normal status. These entries appear on the Summary of Uncorrected Misstatements Document.

  • Unrecorded - Projected: These represent projected misstatements that are unrecorded based on the auditor’s best estimates of misstatements in populations, usually derived from sampling. These entries appear on the Summary of Uncorrected Misstatements Document.

  • Unrecorded - Judgmental: These represent judgmental misstatements that are unrecorded based on differences arising from the judgments of management concerning accounting estimates, or the selection or application of accounting policies that the auditor considers inappropriate or unreasonable. These entries appear on the Summary of Uncorrected Misstatements Document.

  • Tax - Federal: These adjust the federal tax balance. They are not recorded in the normal accounting records. Use the trial balance, journal, and leadsheet documents to display the federal tax entries. If creating a Journal - Adjusting journal entries automatic document, any Permanent or Temporary adjusting entry displays in the Difference column of the report.

  • Tax - State: These adjust the state tax balance. They are not recorded in the normal accounting records. Use the trial balance, journal, and leadsheet documents to display the state tax entries.

  • Tax - City: These adjust the city tax balance. They are not recorded in the normal accounting records. Use the trial balance, journal, and leadsheet documents to display the city tax entries.

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