cancel
Showing results for 
Search instead for 
Did you mean: 
CindyMatteson
Level 2

Parent account and sub account balances incorrect and reconciliation not done in 10 months

Here is my extremely large issue.  Our accountant is too busy to help.  In QB I have an Operating Account (Parent Account) and then below it, 3 sub-accounts.  Forever the parent account has not had the correct balance (it should be the sum of the 3 sub-accounts), it is less than sub-account.  Also, bank statement balance shows a substantially larger balance than QB.  Part of the issue, per our accountant, is that when QB 2008 was moved to QB 2019, a boatload of transactions became UNCLEARED.  Because accountant is too busy to help me, I have printed a report and cleared all transactions, to date, that I could verify as cleared.  So, now that I have done this, is there an easy way to adjust the balance so that it is correct?  Mind you, somewhere along the line staff prior to me made entries that made parent balance lower than sub-account balances.  Not sure if this makes any sense, but thought I would try since, it's been almost a year since I have been able to reconcile the account.  I would have thought the accountant would have the answers, since they recently caught up & did our books and prepared 6 years of tax returns.

Solved
Best answer October 15, 2020

Best Answers
BigRedConsulting
Community Champion

Parent account and sub account balances incorrect and reconciliation not done in 10 months

RE: Forever the parent account has not had the correct balance (it should be the sum of the 3 sub-accounts), it is less than sub-account.

 

Your screenshot doesn't show anything like a parent account with three sub-accounts. 

 

However, it is not correct to say that the parent account balance should always be the sum of the sub-accounts.  That will only be true if you only record data in the sub-accounts directly and never in the parent account.

 

To find these transactions, right click on the parent account on your chart of accounts and pick QuickReport from the bottom of the menu that appears.

 

Each of the sub-accounts will appear first in a grouping and then at the end may be one that is labeled [Account Name] - Other

 

For example, here's my test, where the parent account balance is not the sum of the sub-accounts, which for testing each have just one check in them:

Capture1.JPG

 

The QuickReport on the parent account looks like this. Note the " - Other" section for the Parent account - with its own transactions - and the Balance column where the subtotals show the actual individual account balances and the total of 16.00, which is the sum of the other three balances, and which appears on the chart of accounts for the parent account.

 

Capture.JPG

View solution in original post

3 Comments
BigRedConsulting
Community Champion

Parent account and sub account balances incorrect and reconciliation not done in 10 months

RE: Forever the parent account has not had the correct balance (it should be the sum of the 3 sub-accounts), it is less than sub-account.

 

Your screenshot doesn't show anything like a parent account with three sub-accounts. 

 

However, it is not correct to say that the parent account balance should always be the sum of the sub-accounts.  That will only be true if you only record data in the sub-accounts directly and never in the parent account.

 

To find these transactions, right click on the parent account on your chart of accounts and pick QuickReport from the bottom of the menu that appears.

 

Each of the sub-accounts will appear first in a grouping and then at the end may be one that is labeled [Account Name] - Other

 

For example, here's my test, where the parent account balance is not the sum of the sub-accounts, which for testing each have just one check in them:

Capture1.JPG

 

The QuickReport on the parent account looks like this. Note the " - Other" section for the Parent account - with its own transactions - and the Balance column where the subtotals show the actual individual account balances and the total of 16.00, which is the sum of the other three balances, and which appears on the chart of accounts for the parent account.

 

Capture.JPG

View solution in original post

CindyMatteson
Level 2

Parent account and sub account balances incorrect and reconciliation not done in 10 months

Here is a better look at the Parent account and sub-accounts below it.  The parent account should not have a negative number, I'm certain.  I am self-taught with what I do know about QB so I will have to read the rest of your suggestion and see if I can understand and implement what you have said.  Thank you. 

CindyMatteson
Level 2

Parent account and sub account balances incorrect and reconciliation not done in 10 months

I did what you said and now understand what you are saying.  I have found numerous transactions that our accountant posted to "other" instead of the actual account.  Now I have to ask them if I can move them.  Thank you so very much for your help.  

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up