QB Issue Resolution:

Your balance sheet (B/S), either cash basis (CBBS) or accrual basis or both, is out of balance and your Total Assets do not equal the sum of your Total Liabilities plus Total Equities (A <> L + E).
Why is this happening

This issue has three common causes:

Your data file is damaged.
You have entered or linked transactions that are not compatible.
If you are using multicurrency, check here before proceeding with this article.

Do’s and Do Not’s
DO UPDATE YOUR CURRENT QUICKBOOKS VERSION TO THE LATEST RELEASE.

Maintenance Releases (updates) can help resolve and prevent future data damage issues.
For example, if you are running QuickBooks 2013 R1, update QuickBooks to the latest release to maintain stability and increase performance.
Be sure to update the QuickBooks Database Server Manager on your host or server.

DO BACKUP OR COPY YOUR DATA FILE BEFORE RESOLVING YOUR ISSUE.

Use a new filename for the backup to avoid overwriting previous backups.
Make extra backups after using each of the tools below so that you don’t have to repeat any steps if a subsequent step fails.

DO WORK ON YOUR SERVER OR COPY YOUR DATA FILE TO A WORKSTATION.

Some troubleshooting tools should not be run over a network. Either work on your server or copy your file to a workstation.

DO NOT UPDATE YOUR INSTALLATION OF QUICKBOOKS TO A NEWER VERSION (YEAR) UNTIL THE BALANCE SHEET IS RESOLVED.

Updating to a newer version cannot fix data damage, and can damage your file beyond repair.

DO NOT RUN THE CONDENSE DATA UTILITY UNTIL THE BALANCE SHEET IS RESOLVED.

Condensing a damaged company file can make things worse and can damage your file beyond repair.

1. Most cases are caused by data damage, run Rebuild and Verify.

Important: This situation is different from one where the balance sheet is out of balance and it cascades from one column display setting to the next. For example: if the year is out of balance, one of the months in that year is out of balance, and one of the days in that month is also out of balance. That situation indicates a damaged transaction.

Restart QuickBooks to create a new Qbwin.log file.
Run the basic data damage tools (Resort, Rebuild, Verify, Qbwin.log) that fixes list or transaction damage that is affecting the reports.
If your B/S is still out of balance, use the automatic tools (Portable Company File, File Doctor, Automatic Data Recovery.
If your B/S is still out of balance, use Step 2 to troubleshoot transactions you may have entered.

2. Some cases are caused by transactions you have entered.

We know that these types of transactions will put your cash basis balance sheet (CBBS) out of balance. If have any of these transactions, use the Date Zoom in Section 4 to find the dates that your B/S goes out of balance and the Reports in Section 5 to identify the transactions. Then use these steps to correct the transactions. Before attempting any of these resolutions, backup your company data file.
2a. An inventory return and discount on an invoice.

Look for this situation:

The sale of one or more inventory items.
The return of one or more inventory items.
A discount item.

If the issue persists, try this:

Create one Invoice for the sale and the discount.
Create a Credit Memo for the inventory return.
Link the Credit Memo to the Invoice when you Receive Payments.

2b. A discount entered at the customer level and applied at the job level.

Suppose you have the following scenario:

You have a customer with several jobs. You complete all of the jobs and invoice the customer, including all jobs on the invoice.
You receive a payment for the invoice, but your customer includes a discount for Job A in the payment.
You record the payment to the invoice and enter the discount on the Discount/Credit Tab.
Your cash basis balance sheet will be out of balance.

You need to reenter the payment and split it among the jobs, entering the discount for Job A.
2c. A journal entry linked to a credit memo.

Suppose you have this scenario:

You have an open Credit Memo, so you enter an offsetting General Journal Entry and link it to the Credit Memo.
Your cash basis balance sheet will be out of balance.

To resolve your issue:

Edit the journal entry..
Move the A/R account to the source line, usually the first line of the GJE.
Save the GJE and insure it is still linked to the Credit Memo.

2d. A discount offset to a B/S account.

When you are entering customer payments, you can apply discounts with the Discounts & Credits button. In the discount window, you must enter an offset account in which to record the discount. If you enter a balance sheet account, your cash basis balance sheet (CBBS) will be out of balance.

To resolve your issue, change the discount account to an income or an expense account.
2e. Unconventional inventory transactions.

You may have transactions that adversely affect inventory:

Transactions that drive your Quantity on Hand (QOH) negative,
Transactions that change the QOH for previously entered assemblies and cause the assemblies to be marked pending.
Washing transactions with (+n) and (-n) units of the same item at the same price.
Transactions that use damaged items, or damaged customers, or damaged vendors.

Negative inventory can affect your Cash Basis Balance Sheet:

Run basic data damage troubleshooting to bring your B/S into balance.
Entering inventory transactions puts the B/S out of balance again.
This cycle repeats again and again.

Your options are to:

Correct such transactions (which may affect financial statements for previous periods).
Start a new data file.

If this issue started after upgrading to a new version of QuickBooks, you can:

Reinstall the old version.
Restore the backup that was made before upgrading.
Prepare the restored data file for upgrade.
Upgrade your data file again into the new version.
Check your CBBS.

3. You may have data damage that Rebuild and other tools do not fix

If you have none of the transactions in the Section 2, you may have some data damage that the usual data damage troubleshooting does not fix. This section has some specific forms of data damage that you can check for. These are rare and the solutions are complex. You may save time by going to Section 4 to search for general data damage.
3a. B/S Summary is out of balance, B/S Detail is in balance or vice versa.

Solution: Identify the damaged account and merge it into a new one

If both reports have the same basis and the same same date range, then you may have account list damage.
Determine the problem account(s) by comparing the two reports and finding the account(s) for which the balance differs on the two reports.
Merge the damaged account into a new account.

3b. Your accrual B/S is in balance for Dates = All Dates, but out of balance for any other date range.

Solution: Find and repair damaged transactions.

Back up your company data file.
In the QuickBooks menu bar, Select Lists and then select Chart of Accounts.
Right-click on the Uncategorized Expense account and select QuickReport.
Click Modify Report.
Click the Report Date Range drop-down arrow and select All.
Click the Filters tab.
In the Choose Filter box, scroll down and select Posting Status.
Select Either.
Click OK.
Search for transactions with an amount but with no item or account.
Repair each such transaction that you find.
Repeat Step 11 until you have verified each transaction.
Rerun the Balance sheet report.

3c. Your accrual B/S is out of balance but your cash B/S is in balance.

Solution: Identify damaged income or expense accounts that have a balance but has no transactions and merge them into new accounts.
3c-1. Determine the difference between assets and liabilities:

In the QuickBooks menu bar, select Reports and select Company & Financial.
Select Balance Sheet Standard.
Click Modify Report and select All Dates for the date range and Accrual for the basis.
Write down the difference between Assets and Liabilities & Equities.

3c-2. Locate the damaged account:

Export your Chart of Accounts to your desktop.
Open the COA file in Microsoft Excel..
Highlight the first two rows of the spread sheet and delete them (These are header rows that you do not need).
Highlight Column G and higher and delete them (These columns are not needed for our purposes).
In Column F, Row 1 is OBAMOUNT.
Click on the cell above Row Header 1 and left of Column Header A to highlight the entire spreadsheet.
Sort the entire spreadsheet by Column F.
Find the row whose Column f amount is the amount from Step 3c1-4.
Be sure to write down the name of this account.

3c-3. Fix the damaged account:

In QuickBooks, run a QuickReport for All Dates on the account noted in Step 3B-8. above.
If there are no transactions then this is the problem account.
There should be no balance if there are no transactions.
Create a check for one cent ($0.01) to this account.
Run the basic data damage troubleshooting on the company data file.
QuickZoom (double-click) on the account and delete the check for one cent.
Run the accrual basis balance sheet to be sure it is in balance.

3d. After Condensing your data, your balance sheet is out of balance and the JE’s show amounts without associated accounts.

For example, this issue occurs if you change the associated account on a payroll item after it was used on a paycheck, and then run Condense.

Solution: Correct the affected journal entries.

Restore your company data file from the backup you made before you condensed your data.
Create a Transactions List by Date report: choose Reports > Accountant & Taxes > Transactions List by Date.
Filter the report for Transaction Type: Journal and All Dates.
Scroll down and find any Journal Entries showing an amount without an associated account.
Double-click the report entry to open the Make General Journal Entries window. (Optional) To print the entry for reference before you delete it, click the Print icon near the top of the window.
From the Edit menu, choose Delete General Journal.
From the Edit menu choose New General Journal, and then re-record the journal entry you deleted in the previous step, entering the correct account.
Click Save & New, and then repeat Steps 5 through 9 for the other affected Journal Entries.

3e. One column setting (e.g. Total Only) shows out of balance, other column settings (e.g., by Year) show in balance.

When viewing a balance sheet, total assets match total liabilities and equity in some column views, but not in others. For example, the report balances when you set columns to display Total only, but the report does not balance when you set columns to display by Year. One or more of your accounts may be damaged.

Solution: Identify the damaged account and merge it into a new one

Determine which view of the report data is out of balance:
Click the Reports menu, select Company & Financial, then click Balance Sheet Summary.
Click the Dates drop-down arrow and select All.
Click OK to display the balance sheet.
Click the Columns drop-down arrow, select Total only, and note whether TOTAL ASSETS match TOTAL LIABILITIES & EQUITY.
If the totals do not match, click here to resolve the issue.
If the totals match, continue with Step 1.e.
Click the Columns drop-down arrow, select Year, and note whether TOTAL ASSETS match TOTAL LIABILITIES & EQUITY for all columns on the report.
If the totals do not match in at least one column, note the column heading of the earliest instance where the totals do not match and continue with Step 2.
If the totals match in every column:
Repeat this step selecting progressively smaller time increments in the Columns field (Quarter, then Month, then Week, and then Day).
Stop when TOTAL ASSETS do not match TOTAL LIABILITIES & EQUITY in at least one column on the report. Note the column heading of the earliest instance where the totals do not match and continue with Step 2.

Identify the damaged account:
Click the Reports menu, select Company & Financial, then click Profit & Loss Standard.
Enter a date range in the From and To fields that matches the column heading you noted in Step 1.e. For example, if the column heading was a year, enter the first and last dates of that fiscal year. If the column heading was a month, enter the first and last dates in that month.
Click OK.
Audit the integrity of each account on the report:
Note the amount next to the first account displayed on the report.
Double-click the amount to open the Transaction Detail by Account window.
Scroll to the bottom of the report and note the total in the Balance column.
If it matches the account total on the Profit & Loss report, continue.
If it does not match the account total on the Profit & Loss report, note the account number and continue.
Close the Transaction Detail by Account window.
Repeat Steps 2.d.i through 2.d.iv for every account on the Profit & Loss report to create a list of one or more damaged accounts.

Merge the damaged account(s) with new one(s).

3f. Your B/S is out of balance on both Accrual and Cash bases.

Solution: Identify and repair transactions that do not have accounts assigned.

Run the following report:

Custom Transaction Detail report.
Set the Dates to All.
Set the Basis to Cash.
Set Total by to Account List.
Add the Item column.
Click OK.

Scroll to the bottom of the report. If the last group of transactions has the heading No accnt and the Account column is blank, then these transaction Targets have no accounts assigned to them. Try the following:

Open the Edit Item window for the Item.
Change the Account and click OK.
Reopen the Edit Item window.
Change the Account back to the original account and click OK.
Repeat Steps 1 – 4 for each transaction on the above report that does not have an account.

4. Zoom in on the day on which your B/S goes out of balance.

This process begins with running the cash basis balance sheet for All Dates and then zooming in to the cash basis balance sheet for a single day on which your B/S goes out of balance. Be aware that there may be several days on which your B/S goes further out of balance.

For each iteration, memorize the report and save the spreadsheet because often there are more than one year, month, week or day that have a transaction adding to or subtracting from the out-of-balance amount
Step 1, Year.

In the menu bar, select Reports and then Company & Financial and then Balance Sheet Standard.
Click Modify (Customize)Report.
On the Display Tab:
Set the Report Basis as Cash.
Select Dates = All.
In Display columns by , select Year.

If you are in QuickBooks 2012 or earlier:
Click OK.
When the report displays, memorize the report.
Click the Excel button and export the report to Microsoft Excel.
In the first open cell, in the first column of amounts, enter the formula Total Assets – Total Liabilities and Equities.
Copy the cell to right to the last column with amounts.
If your CBBS is in balance, all of the cells with contain zero. Cells that are non-zero indicate that the CBBS is out of balance.
If the CBBS is out of balance, note the first year that it is out of balance and every year thereafter for which the balance changes.

If you are in QuickBooks 2013 or later:
Collapse Assets into a single line.
Collapse Liabilities & Equities into a single line.
Compare each year. A year for which the two numbers are different is out of balance.

Step 2, Month.

Repeat Step 1 with two exceptions:
Set the Dates to the year found in Step 1, e.g., 1/1/2011 to 12/31/2011.
Change the Display columns by to Month.
Find the first month in which the CBBS is out of balance.

Step 3, Week.

Repeat Step 1 with two exceptions:
Set the Dates to the month found in Step 1, e.g., 1/1/2011 to 1/31/2011.
Change Display columns by to Week.
Find the first week in which the CBBS is out of balance.

Step 4, Day.

Repeat Step 1 with two exceptions:
Set the Dates to the week found in Step 1, e.g., 1/2/2011 to 1/8/2011.
Change Display columns by to Day.
Find the first day in which the CBBS is out of balance.

5. Find the transactions that are putting your balance sheet out of balance

Once you have the day(s) on which the cash basis B/S goes out of balance, run these reports in sequence to identify the transactions that are putting it out of balance.
1. The Customer Report.

Run the Custom Transaction Detail report
Click on the Customize (Modify) button.
On the Display Tab:
Set the Basis to Cash.
Set both the To and From as the date that the balance sheet goes out of balance.
Set Total by to Customer.

On the Filter Tab:
Select the Transaction Type filter.
Select Multiple Transactions and select Invoice, Credit Memo and Payment.

Click OK.
Memorize the report.
If the total is zero, then the transaction(s) putting the balance sheet out of balance is not a customer transaction.
If the total is the amount by which the balance sheet went out of balance on this day, then find the customer who has a non-zero sub-total. This customer has damaged transactions.
If the total is non-zero but not the amount by which the B/S went out of balance on this date, then add other transactions to the Transaction Type filter, e.g., Journal Entries or Checks.

2. The Vendor Report.

Run the Custom Transaction Detailreport.
Click on the Customize (Modify) button.
On the Display Tab:
Set the Basis to Cash.
Set both the To and From as the date that the balance sheet goes out of balance.
Set Total by to Vendor.

On the Filter Tab:
Select the Transaction Type filter.
Select Multiple Transactions and select Bill, Bill Credit and Bill Payment.

Click OK.
Memorize the report.
If the total zero, then the transaction(s) putting the balance sheet out of balance is not a vendor transaction.
If the total is the amount by which the balance sheet went out of balance on this day, then find the vendor who has a non-zero sub-total. This vendor has damaged transactions.
If the total is non-zero but not the amount by which the B/S went out of balance on this date, then add other transactions to the Transaction Type filter, e.g., Journal Entries.

3. Neither a Customer nor Vendor transaction.

Run the Custom Transaction Detail report.
Click on Customize (Modify) button.
On the Display Tab:
Set the Basis to Cash.
Set both the To and From as the date that the balance sheet goes out of balance.
Set Sort by to either Debit or Credit.

Click OK.
Memorize the report.
Scan the report for a transaction with the same amount as the amount by which the B/S goes out of balance.
Edit each transaction, in turn, and set the date to 20 years in the future, save it, see if the B/S comes back into balance.

If these reports do not identify the damaged transaction(s), then see HOW12456 for more ways to find the damaged transactions.

When you have identified the damaged transaction(s), use HOW12506 to repair it.

Resolution for Issue 'How to resolve a Balance Sheet out of balance issue?' available: Yes (Solved).
Source: Intuit Community forum.

How to resolve a Balance Sheet out of balance issue?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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