NetAsset - Reconciling the Subledger to the General Ledger
Overview
A discrepancy between the subledger and the general ledger typically indicates manual updates that bypass standard NetAsset system processes. The following structured approach can be used to identify and resolve the issue.
Step-by-Step Process
Step 1: Run Reports
Generate both the Asset Balance Roll Forward Report and the Asset Balance Subledger Roll Forward Report. Filter each report by the current Accounting Period, Subsidiary, and any other applicable criteria.
Step 2: Compare Beginning Balances
Check whether the beginning balances of both reports match for the current period. If they do tie, the discrepancy happened within the current period. If they do not tie, the issue likely originated in a prior period.
Step 3: Trace Back to the Root Period
If the discrepancy originates in a prior period, continue running the reports and comparing beginning balances, moving backward one period at a time. The first period where the balances align indicates when the issue was introduced:
In this example, the beginning balances match across both reports, while the ending balances differ. This indicates that a transaction within the current period is causing the discrepancy.
Step 4: Export and Analyze
Once the period where the discrepancy begins has been identified, export both reports to Excel. Use an XLOOKUP function to compare the ending balances for each asset across the two reports. This will help identify which asset(s) show discrepancies between the reports.
Step 5: Drill Down and Compare Transactions
Now that the problematic assets have been identified, return to NetAsset and re-run both reports for the affected period. In the filter options, update the Report Level to Level 3. On the G/L report, this level is typically labeled Transaction Detail; on the subledger report, it is labeled Schedule Line Detail.
Review the transactions for the identified assets in both reports. Discrepancies are often caused by:
- Manual journal entries that appear in the G/L but not in the subledger, or
- Unprocessed schedule lines in the subledger (e.g., depreciation that has not been posted).
These details will help isolate the root cause of the difference.
In this example, the asset shows a depreciation entry on the Asset Balance Roll Forward Report, but a corresponding impact is missing from the Subledger Roll Forward Report. This discrepancy explains the difference in the ending balances.
Troubleshooting
Expected assets are not visible in the report:
- Assets with a Pending or Split status do not appear in these reports by default. Verify the asset status directly on its asset record.
- Filters such as subsidiary, currency, department, class, location, or accounting period may exclude assets or transactions. It is recommended to start with broader filter settings to ensure all assets are included, then narrow the filters as needed.