Acumatica Discrepancies: Solving the Case of the Mismatched Balance Sheet
This podcast episode examines a real-world scenario where a client’s Acumatica system generated mismatched financial reports, creating challenges for their year-end closing and upcoming audit. The episode then explores the solution implemented by Tayana Solutions and the benefits of having expert Acumatica support.
(a) Challenges
- Discrepancy between the balance sheet and profit and loss statement: A client discovered their Acumatica system was generating a discrepancy between the net income reported on their balance sheet and their profit and loss statement. This discrepancy caused significant concern as the client was preparing for their financial year-end closing and an impending audit.
- Inability to close the financial year: The discrepancy in financial reports prevented the client from closing their financial year.
(b) Solution and Benefits:
- Detailed comparison and analysis: A consultant meticulously compared the transactions listed under the net income account on both the balance sheet and the profit and loss statement. This step-by-step approach, similar to a detective’s investigation, helped isolate the issue to a single transaction from June.
- Identification of the root cause: The analysis revealed that the discrepancy stemmed from a new account class called “expga” that the client had recently added to their system. The client had neglected to update their Acumatica Reporting Maps (ARM reports) to include this new account class.
- Updating ARM reports: The solution involved updating the ARM reports to incorporate the missing “expga” account class. ARM reports act as a guide for Acumatica, dictating how data should be collected and arranged in financial reports. By adding the missing account class, the system was able to correctly process the previously misplaced data.
Benefits:
- Accurate Financial Reporting: Updating the ARM reports ensured accurate financial reporting, aligning the balance sheet and profit and loss statement. This enabled the client to proceed with their year-end closing and audit preparations with confidence.
- Simple and Efficient Solution: The fix did not necessitate a complete system overhaul. A simple update to the ARM reports resolved the discrepancy effectively.
- Importance of Understanding Acumatica: The situation emphasizes the criticality of comprehending the intricacies of Acumatica, especially when implementing changes to the chart of accounts. Seemingly minor adjustments can have cascading effects on the entire system.
- Proactive Testing: The podcast highlights the importance of utilizing Acumatica’s built-in testing tools to preview the impact of any changes before going live. Features like the “test report” function provide a safety net for financial data.
- Value of Expert Support: The podcast emphasizes the benefit of partnering with Acumatica experts like Tayana Solutions to navigate complex situations and ensure the system is set up correctly. Tayana Solutions provides specialized training and support, empowering users to manage their Acumatica system effectively.