Hi there,
I have a closing balance on the Debtors control account " liability" which i am having difficulty trying to reconcile. The individual Debtors balances add to NIL. The Control account does not reflect daily balances so that we could narrow down the time frame. Is there a way of doing this.
I have also picked up that there is an Unallocated balance on a debtor account and wonder with this will be part of the error? Not sure what the accounting entries are for Unallocated items.
You have a client with an unallocated balance on account that is equal to the amount showing up on the balances sheet (once you remove the VAT).
You can generally isolate such payments by going into Sales >> View Payments then filtering in the advanced search to show “Unallocated” items:
Hello Glenn, Okay thanks for that , however it has now compounded my problem. It isolated the client to show an amount of £168 as unallocated but in a prior year . Im surprised accountants did pick up . However the amount reflected on my year end accounts is £140 Credit ( i.e. on the liability side not as an asset) . As they say as you dig it becomes a mine dump !!! lol.
If a client payment is not assigned to an invoice (where the debtor control aspect is balanced to zero) it will effectively sit as a liability on your balance sheet. It’s a liability because you are holding that money in limbo so you either need to repay the client or assign to an invoice.
