Solution Description

Most lines on the Balance Sheet are input / output.  However, there are some ending amounts that the program automatically calculates unless an entry is made in the Ending column on the Balance Sheet input screen.

To review the Balance Sheet:

  1. Navigate to the Check Results workspace.
  2. Select the US Tax Forms heading on the left-hand navigation bar.
  3. The forms will appear.  Click on the Form 1065 and navigate to the Balance Sheet page to determine which line or lines are incorrect or causing the Balance Sheet to be out of balance.

To review the Balance Sheet input:

  1. Navigate to the Input Return (Enter Data in TY2012 and prior)  workspace.
  2. Select the Balance Sheet, M-1, M-2 heading on the left-hand navigation bar.
  3. Make changes as needed to balance the Balance Sheet.

The following ending Balance Sheet items are automatically calculated by the program:

Assets

  • Inventories - This is based on the Cost of Goods Sold entries.
  • Buildings and other depreciable assets - The program will automatically add to the beginning depreciable assets any assets placed in service in the current tax year. The program will also subtract any assets sold during the year to arrive at the End of Year balance. 
  • Less accumulated depreciation - The program automatically enters accumulated depreciation on the balance sheet from assets in the depreciation screen and subtracts any depreciation from assets sold during the year to calculate accumulated depreciation at the end of the year.
  • Depletable assets - The program automatically calculates the ending balance as follows: Beginning balance of depletable assets plus current year change in depletable assets entered in Oil and Gas.
  • Less accumulated depletion - The program bases its calculation on the entry in "Current Year Book Depletion (Table or Dollar Amount.). If this field is left blank, the program uses federal tax depletion to calculate the ending balance of accumulated depletion.
  • Intangible assets - The program automatically calculates the ending balance as follows: Beginning balance of intangible assets plus current year change in intangible assets entered in Depreciation. For this calculation, an "intangible asset" entered in Depreciation is defined as an asset placed in service during the current year having an entry of 97 in Method, an entry of "Amortization" in Category, or an entry in "Amortization code section."
  • Accumulated amortization - The program bases its calculation on the entry in "Current Year Book Amortization (Table or Dollar Amount)." If this is left blank, the program uses federal tax amortization to calculate the ending balance of accumulated amortization.

Liabilities

  • Partners' capital accounts - This amount is automatically calculated on the Schedule M-2. An override is available on the bottom of the Balance Sheet section.

Product Affected

ProConnect Tax Online

GEN79726