Shareholders Distributions on Sch K Throwing Balance Sheet Out of Balance.

[METMETMET]

Hello,

My balance sheet is out of balance and its affecting the retained earnings.  The amount is off by $476, which is the exact amount of shareholder distributions for the year.  However, when I enter the distributions in Schedule K on the SH Distributions and Dividends Smart Worksheet, the out of balance amount doubles to $952.  To make the balance sheet reconcile and zero out the out of balance amount, I have to enter the distribution on Sch K as a NEGATIVE amount.  That doesn't make sense to me and I've never run across this in the past.  Is this a program glitch or did I enter something incorrectly? 

Thank you. 

Mary Ellen

[dkh]

I've not had a problem with the 1120S returns I've prepared.     Do you have a Balance Sheet from accounting program you're entering from?   If yes, verify it was entered as a distribution in the accounting program.

[METMETMET]

Hi, there.  Yes, QB balance sheet clean as a whistle.  That's where the original distribution stems from.  No resolution help from the ProSeries business team.  Wasted time, unfortunately.  

[dkh]

I've had instances that prior year distributions were not closed into Retained Earnings, so when I used distributions from Balance Sheet it was overstated.    Can you verify the distribution amount is only 2019 distributions?

[METMETMET]

Hi, thanks for responding.  Are you asking if prior year distributions were closed to RE in QuickBooks or ProSeries?  In QB, yes.  The problem is on the ProSeries side.  I think it's a program glitch between Sch K distribution line and the balance sheet/M-1.

[dkh]

I've done several  1120S,  used the distribution line on most all and have not had an issue.   

Is there another set of eyes available in your office to look at it?      You're time to efile is running short.

[METMETMET]

No.  I did a workaround and made an adjustment on the balance sheet to reconcile.  Didn't like doing this but time was of the essence.  (Fortunately, this is my own return, not a client's).  Hopefully it will clear itself next year.  I am going to create a new "test" return and see if the same thing happens.  Thanks for your input!