Castaway is a 3-way forecasting and reporting system, meaning that the Profit & Loss, Balance Sheet and Cashflow reports are all integrated. By design, these reports should always be in balance.
If you find that your reports are out of balance (OOB), here’s how to track down the problem. We’ll start by looking at the projected Balance Sheet:
Review the projected Balance Sheet, with all periods visible, including Opening Balance
- Switch to the balance sheet report. If Actuals are enabled, select ‘Projected’ from the Report On selector
- Make sure all periods are visible. If necessary, go to the Report view settings and select Show Opening
- From the date setting options, make sure the Months view is selected
Next, we’ll look at how the OOB value(s) behave over time. We can tell a lot from knowing when the OOB starts, whether the values are constant or changing over time, whether they occur in actuals or projected months
If the OOB starts in an Actuals Month, the problem is likely to arise from incorrect data entry, incomplete mapping from your general ledger or a prior period adjustment that hasn’t been transferred across to Castaway. Follow these steps in order until you identify the problem:
- First, open the Actuals Balance Sheet Entry screen and focus on the OOB month(s)
- In each OOB month, check that your balance sheet data entry is correct
- If you have imported data from Excel, or via the Castaway Integrations add-on, check whether any of your general ledger accounts have not been mapped
- Next, check that the Retained Earnings figure calculated by Castaway each month agrees to your general ledger numbers
- If not, check in your general ledger for any direct journal entries into a Retained Earnings account. These will need to be manually updated into a separate Equity element in Castaway, because Castaway automatically calculates Retained Earnings in actuals months to ensure accounting integrity
- Open the Actuals Profit & Loss Entry screen and check that your data entry is correct
- Check the Net Profit after Tax figures each month against your general ledger reports in case there has been a prior period adjustment that has not been reflected in Castaway
If the OOB starts in the Opening Balance Sheet AND is always the same number, the problem is likely to arise from incorrect data entry:
- Open the Opening Balance Sheet data entry screen
- Check that your balance sheet data entry is correct, including the Retained Earnings
If the OOB starts in a projected month, the problem is likely to arise from an accounting illogicality in an Inventory element:
- Click on Element settings and click on the Element groups to switch to the Edit Element Properties screen and review the Inventory elements
- Make a note of any Inventory elements with the Purchases Method set to Enter Closing Inventory Balance
- Return to the Castaway main screen and go into the data entry screens for each of the Inventory elements noted above
- If any element has a Total Purchases value of 0 in the OOB month, look more closely at the calculation logic. Castaway is designed to not accept a negative value for the calculated Total Purchases value. Therefore, ensure that the Opening Inventory balance – Total Inventory Outflow – Closing Inventory balance would not result in a negative number. If it would, adjust the Cost of Goods Sold value or the Closing Inventory balance to correct the problem.
If none of these ideas helps you resolve your OOB, contact our support team for more expert assistance.