Hi there, I’m on the cloud version, there is an automatic account (created by manager) called rounding expense, during the course of business we had rounding income which we book to an account called ‘‘Rounding income’’ our financial statements date arrived and based on the auditor’s advise we need to close the rounding expense account in the rounding income account (since the rounding income is greater).
The problem: when creating a journal entry to close the balance, the rounding expense account can not be selected (it does not appear). please help.
Why do you have a separate Rounding income account, and where do entries to it originate? If you round both up and down using the rounding feature of Manager, all rounding entries will post to the same automatic account, tending to cancel one another out. If you are going to make rounding entries independently from the automatic feature, you should not also use the automatic feature.
The automatic account does not need to be closed out. The income or expense postings to it are real and belong on your Profit and Loss Statement. If you prefer this account to appear as a revenue account (because it typically records net income), you can edit the account in the Settings tab to appear in the Revenue group instead of the Expenses group. You can also rename the automatic account to something like Rounding income or Rounding gains (losses).
Thank you for the detailed explanation, I showed this to my auditor, he told me the balance on the account is rather small and he recommends it doesn’t show on our statement or trial balance, he requested for it to be closed out to an account called: ‘‘other expenses’’ where we are gathering small non-recurring expenses, anyways I managed to present my accounts in an excel sheet this time to avoid the auditor critique but I would love to be able to adjust the account using journal entry, thank you anyway