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egarccc
Level 2

Balance Sheet By Class Cleanup

I have inherited a company that was set up with classes several years ago. However it seems several entries were made incorrectly or were not assigned a class. Hence I have several years of amounts in the Unclassified Column. I have amounts on the last line of the Balance Sheet named Unbalanced Classes.  All unbalanced amounts net to zero in the Total Column.

My task is now to clean this up. As I mentioned there are journal entries going back to 2015-2016; my predecessor added passwords so even if I wanted to, I do not know the password to try and correct these journal entries with the correct class. Some entries have just been entered incorrectly ( debit Class A/credit Class B).

I simple way of eliminating the amounts in the Unclassified column, is by making entries that would clear out the Unclassified amounts but this would mean using journal entries with Different classes - one side of the entry would be Unclassified, while the other side of the entry would have the Correct Class.I know Quickbooks doesnt like this, but at this point, I already have Unbalanced Classes, so would it cause any other issues?  I cant think of any other way to clean up the balance sheet . Help!

1 Comment 1
john-pero
Community Champion

Balance Sheet By Class Cleanup


@egarccc wrote:

journal entries with Different classes - one side of the entry would be Unclassified, while the other side of the entry would have the Correct Class.I know Quickbooks doesnt like this, but at this point, I already have Unbalanced Classes, so would it cause any other issues?  I cant think of any other way to clean up the balance sheet . Help!


We do this all the time. I pay monthly property insurance bills that cover 30 separate properties and instead of breaking down the 1/12 premium into 30 parts each month I enter each invoice as either unclassified or overhead and then adjusting this annually in a single journal entry by crediting blank or overhead and debit proper class.

 

Do also keep in mind that while QBO allows the creation of BS by Class it is never accurate or beneficial information

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