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Balance sheet turns negative bank balance into positive
OK, it's quite likely to be me who's doing something wrong, but this seems odd.
I'm looking at my 07/08 balance sheet and it doesn't balance by quite a margin. Searching for the problem I noticed that FAC has turned a starting bank account balance of -7,000 (correctly recorded in the bank account) into a 7,000 opening balance (displayed in Trial Balance and Show Transactions). Obviously the balance sheet is now out by 14,000.
Could someone have a look at this or tell me that I'm barking up a wrong tree?
I'm looking at my 07/08 balance sheet and it doesn't balance by quite a margin. Searching for the problem I noticed that FAC has turned a starting bank account balance of -7,000 (correctly recorded in the bank account) into a 7,000 opening balance (displayed in Trial Balance and Show Transactions). Obviously the balance sheet is now out by 14,000.
Could someone have a look at this or tell me that I'm barking up a wrong tree?
I’m baffled
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The more people who report this problem, the more it gets noticed.
The company thinks this is not a problem.
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Inappropriate?Wolf,
We've identified some problems with the way FreeAgent is handling bank account entries that occur before the FreeAgent Start Date.
We'll be deploying an addition release in the next few days which should correct this issue.
Once more, sorry for the inconvenience in the meantime. -
Inappropriate?Thanks for looking into it. Kind of urgent this time of year... -
Inappropriate?Hi Ed,
Happy Christmas!
Do you consider this issue fixed in the latest release 'Eggnog'? You mentioned a tweak to fix opening balances getting skewed in your release notes. But it's still happening in my balance sheet. Could this be something else?
W -
Inappropriate?Wolf,
We needed to fix another problem before addressing yours directly, since the former was probably masking the latter.
This is now top of our bugfix list (since it does indeed look like a bug, sorry) and will be resolved as quickly as we can. -
Inappropriate?I don't know if it helps, but when I first entered all of my starting balances, I found that nothing would balance my quite a considerable margin. I finally worked out that if I entered the Trade Debtors Opening Balance as a negative number rather then positive everything magically balanced.
Don't know if it is related or not, but it sounds similar.
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Inappropriate?Wolf
As we've discussed over email now, it looks like FreeAgent was correctly representing the negative balance OK as a Liability rather than an Asset - you might want to check with your accountant what other opening balances existed at the start date which balanced that out.
Peter - It can be confusing as to which sign these opening balances are...it's almost always the opposite of what you think!
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Inappropriate?Did this ever get solved?
I am at year end and the correct negative opening bank balance has worked fine to give the correct bank account balance all year.
However, it appears in the 750-1 transactions list as an opening balance at double the amount (+4k) as a credit, and on the balance sheet as a liability - which I agree is correct - but also at double the amount, making the balance sheet not balance by that amount. Have I misunderstood something and need to put another balancing journal somewhere, or is there still an issue?
I’m glum
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Inappropriate?Hello Samantha,
So are you seeing your opening bank balance as duplicate lines on the opening trial balance?
If so, that's a slightly different issue but it's easily fixed.
Click on one of the duplicate lines on the opening trial balance. This will bring up the Edit Bank Details screen.
Then click Save Changes.
That should remove the duplicate.
Could you let me know if that works, please?
Kind regards,
Emily -
Inappropriate?Thanks Emily. I hadn't discovered the opening trial balance sheet, but when I did it indeed showed all bank accounts twice and your fix worked. Useful knowledge for anyone else who has this problem!
Thanks for the solution.
I’m happy
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