Why does my NETINC not match my Income Statement profit

There are a few reasons why the automatic NETINC account in CaseWare may not balance with the Profit in the Income Statement.

- The Trial balance has been modified.

- The Income Statement has been modified.

- Custom map numbers may have been created

- The Trial balance has been modified

When user maps accounts from their client trial balance to a CaseWare mapping number, there are a number of properties assigned to these accounts. One of these properties is the Type which is then used to calculate the NETINC account. 

The NETINC account totals up all the Income Statement (IS) types to produce the total calculation. If the Type for any account is modified, then this can impact upon the NETINC calculation. Users have the ability to check if these properties have been modified through the use of the CaseWare Diagnostic utility.

1. From the Tools tab, select Diagnostics. The 'Diagnostics' dialog will appear.

2. Select Mapping Structure and tick the fields; TYPE and SIGN.

3. Click OK. If there is a problem, an error report will appear like the one below. If there is nothing wrong with the trial balance, this report will be empty.

4. Once you have established a problem, you can use the above report to fix each of the accounts.

Note: Ref to the FAQ below regarding the Auto-fill now to see how you can resolve all these errors at once.

- The Income Statement has been modified

- Inconsistencies between the Income Statement and NETINC can also be caused by custom changes to the income statement itself.

A good way to check is to reinsert a fresh Income Statement into the Financials and see if that resolves the problem.

Note: Any custom changes made to the statement will be lost.

1.    Make sure you backup your engagement before proceeding (File | Backup).

2.    Within the 'Financials ribbon' select the Insert tab | from the Statements area > Income Statement.  

3.    Tick the same Income Statement already selected and click OK.

4.    Click Yes replace the current Income Statement.

Custom map numbers may have been created

Custom map numbers can be the silent culprit for these two items not balancing. If a user or firm have created custom map numbers, they may have forgotten to select the correct properties for the map number.

For example, a new map number may have been created for Travel expenses but the Type was setup to be a Balance Sheet item. This can be a real problem because the Diagnostic utility in CaseWare will not pick up this error.

Warning: Please do not create any custom map numbers. Please refer to our mapping guide for further information.

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