Adjusting Entry worksheet

Current Entry

Displays the entry number for the current adjusting entry. Click the drop-down menu to view a list of existing entry numbers.

New

Creates a new adjusting entry and automatically assigns an entry number in sequence.

Delete

Deletes the current adjusting entry.

Renumber

Renumbers an adjusting entry.

Navigation Buttons

Navigate through existing adjusting entry numbers.

Displays the name of the user who created the adjusting entry.

Period Type

Select a period from the Engagement Properties | Reporting Dates tab.

Date

Displays the ending date of the current active period. When processing multiple periods, the date can be set to a prior or future period. For a prior period, only the year-to-date is affected, not the current period financial statement. For a future period, the current financial statement is not affected.

Reference

Select a document from the drop-down menu to reference the adjusting entry to it.

Type

Select an entry type.

• Normal adjusting: Updates all relevant automatic documents. When updating from one period to another (including a year end close), these entries are transferred from the Adjustments column to the Opening or Preliminary Balance column on the Trial Balance and leadsheet documents.
• Reclassifying: Records the entry in all financial statements and leadsheet documents, but not in normal accounting records. When a reclassifying entry is made in any period other than the last period of the fiscal year, it is excluded from the accounting records, but the non-consolidated balances do not have to be reversed.
• Unrecorded - factual: Represents factual misstatements that will not be recorded because of materiality, or proposed entries that may be subsequently changed to a normal status. These entries will display on the Summary of Uncorrected Misstatements Document.
• Unrecorded - projected: Represents projected misstatements that are unrecorded based on the auditor's best estimates of misstatements in populations; usually derived from sampling. These entries will display on the Summary of Uncorrected Misstatements Document.
• Unrecorded - judgmental: Represents 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 will display on the Summary of Uncorrected Misstatements Document.
• Eliminating: Prepares combinations or consolidations of divisions or companies. These entries will display in consolidated trial balances, leadsheets, and financial statement documents.
• Tax - Federal: Adjusts the federal tax balance. 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 will be displayed in the Difference column of the report.
• Tax - State: Adjusts the state tax balance. Use the Trial Balance, journal, and leadsheet documents to display the state tax entries.
• Tax - City: Adjusts the city tax balance. Use the Trial Balance, journal, and leadsheet documents to display the city tax entries.
• Other basis: Enables other basis adjustment entries.
• Prior period: Enables prior period adjustments. Only the year-to-date financial statement is affected. If the active period is changed to include the prior period date, these entries change to type Normal adjusting.

Accounts

Select the type of account that the journal entry affects. Only Financial entries will post to normal accounting records. All other types can be used to adjust balances or to add information to the accounts for display, reclassification, or information purposes only.

• Financial: Create entries that adjust accounts in the client's chart of accounts.
• Cash Flow: Create entries that adjust accounts on the Statement of Cash Flow.
• Performance: Record activity used in the analysis of Performance Measures.
• L/S: Create entries that adjust accounts on Leadsheet grouping.
• Group 2 to 10: Create entries that adjust accounts in any grouping.
• Mapping: Create entries that adjust mapping account balances.
• Tax Export Code: Create entries that adjust tax export code balances.
• M3 Code: Create entries that adjust M3 code balances for US tax entities (excluding Non-Profit).

Apply To

Select the corresponding grouping to create another adjusting entry with the same amount. If you select All, the value displays with any applicable group or tax code balance. This option is only available if Accounts is set to Mapping.

You can only edit the corresponding grouping entry through the mapping entry.

Misstatement

Select a misstatement type to apply to the adjusting entry. This option is only available if Type is set to Normal adjusting, Reclassifying, Eliminating, Tax, or Other basis.

• Factual: Misstatements where there is no doubt and where supporting documentation is available.
• Projected: The auditor's best estimate of misstatements in populations; usually derived from sampling.
• Judgmental: Differences arising from the judgments of management concerning accounting entries.

Balance

Select a balance to apply to the adjusting entry.

Select to create a temporary or permanent tax adjustment for the difference between tax and accounting balances. This option is only available if Type is set to Tax - Federal, and CCH ProSystem fx is selected as the tax vendor.

The federal tax adjustment amount will display in the Permanent or Temporary column of the corresponding form, depending on the selected Tax Entity.

Description

Enter a description of the adjusting entry. Each line of the field can contain up to 40 alphanumeric characters. Press CTRL + ENTER to start a new line. The complete description is printed in the adjusting entry.

Recurrence

Select Recurring to repeat the adjusting entry over a pattern and range (defined in the Advanced... dialog).

Select Reversing to reverse an adjusting entry that was made in the prior period.

Calculated

Select to display a calculation column in the worksheet area. You can use the column to create a calculated adjusting entry.

Select to make the entry only affect the specified period (interim balances) and not the adjustment amounts for the regular adjusting entry types. To enable this option, click Customize... | Allow Entry to be marked as having been booked in the General Ledger.

The entry amount will be reflected in the Trial Balance when drilling down to a Prior Year adjustment column and then further drilling down in the Adjustment column. The affected adjustment amount will display in the column labeled Booked in the Prior Adjustment screen.

Note: If you select this option and use the default date range, account opening balances will not include booked adjusting entries from prior periods on the General Ledger report.

Click to recalculate all of the calculated adjusting entries.

Click to view the history events for adjusting entries.

Click to open the Customizing Adjusting Journals Entries dialog.

Assign the adjusting entry to a specific entity. This column only displays in Consolidated files.

Click the drop-down menu to select an account number where the entry will be posted.

Displays the name of the account number as entered in the Trial Balance. Click ... to enter an extended description.

Select the applicable tax code for the entry. To enable this column, click Customize... | Allow Tax Type Postings. You can add or modify tax codes on the Tax Codes tab.

Click ... to enter a formula that will calculate the value to include in the Amount Field. This column only displays in calculated adjusting entries.

Debit

Enter the debit amount of the entry. To enable this column, click Customize... | Show Debit and Credit Columns.

Credit

Enter the credit amount of the entry. To enable this column, click Customize... | Show Debit and Credit Columns.

Displays the cumulative amount of the adjustments booked for each account. The amounts showing in the Cumulative column reflect the balances from all instances of the recurring entry, up to and including the entry being displayed, but not subsequent instances of the entry.

Total Amount

Enter the debit or credit amount of the entry. You must apply a minus (-) to the amount to designate a credit.

Select an individual reference number for each line of the adjusting entry. To enable this column, click Customize... | Allow Individual Reference Numbers.

Annotation

Displays line annotations, notes, references, or tickmarks for the entry.

Select to enable the entry of tax amounts in adjusting entries. This option also adds a Tax Code and Tax Amount column to the worksheet, and renames the Total Amount column to Amount. Clearing this option will not eliminate any existing tax entries.

Select to split the Total Amount column into separate Debit and Credit columns. Selecting this option removes the need to enter a minus (-) for credit amounts.

Select to add a Reference column to the worksheet.

Select to display only entries from the current period in the Current entry drop-down menu. Clear this option to show all entries.

Select to add a Cumulative column in recurring entries that displays the cumulative amount of the adjustments booked for each account.

Select to display the Booked in General Ledger option.

Select to add two additional adjusting entry types. These types appear independently on the Trial Balance and Grouping automatic documents.