A step-by-step guide to understanding and reviewing the unbalanced journal flag in Working Papers when intercompany accounts do not fully agree.
1) Review the Intercompany Elimination
When you consolidate a Group, GATHER.nexus automatically creates journals to eliminate amounts owed between companies.
For example, an intercompany receivable in one company is eliminated against the matching payable in another company.
For the elimination to be complete, both accounts should contain the same amount.
2) Understand When the Flag Appears
Where the two intercompany account balances do not agree, GATHER.nexus posts the smaller amount on both sides of the journal so that the journal remains balanced.
For example:
One company's receivable is £110.
The matching payable is £100.
The platform posts £100 on both sides.
The remaining £10 is not eliminated.
The Unbalanced Journal Flag makes this difference visible so that a balanced journal is not assumed to be a complete elimination.
3) Identify the Unbalanced Journal Flag
On an affected journal line, one side is shown in red with a warning icon.
The flagged side is the side where the amount posted by the journal does not match the balance in its source account.
The flag remains visible when the journal is collapsed, so you can identify the issue without expanding the journal or scrolling to the Consolidated total.
4) Review the Three Figures
Next to the warning flag, review the three figures provided by GATHER.nexus:
Posted - the amount that the journal actually posted.
Ledger balance - the balance held in the source account from QuickBooks or Xero.
Un-eliminated - the difference that remains after the elimination.
For example:
Posted: £100
Ledger balance: £110
Un-eliminated: £10
This shows that the source account contains £110, but only £100 could be eliminated because £100 was the smaller amount on the matching account.
5) Review the Un-eliminated Amount
The Un-eliminated amount represents the balance that remains in the consolidated accounts because the two intercompany accounts did not agree.
In the example above, the £110 receivable is matched against a £100 payable. The platform therefore eliminates £100 and leaves £10 of the receivable in the consolidated accounts.
A journal can therefore appear balanced while still having an underlying difference between the two accounts. The flag highlights this difference for review.
6) Investigate the Difference
When the flag appears, review the underlying intercompany accounts to identify why the balances do not agree.
Typical causes include:
Missing or mismatched transaction - one company may have recorded an invoice, credit note, or payment that the other company has not recorded.
Timing difference - one company may have posted the transaction while the other company will record it in a later period.
Cut-off or data-sync issue - the companies' ledgers may not have been fully synchronised from QuickBooks or Xero for the period.
7) Correct and Re-run the Elimination
Once the underlying account difference has been identified:
Correct the relevant transaction or account balance.
Confirm that both company ledgers are fully synchronised.
Re-run the intercompany elimination.
Review the journal again.
If the two underlying accounts now agree, the Unbalanced Journal Flag disappears.
8) Review the Journal Status
Use the flag as a quick indication of whether the intercompany elimination requires investigation.
Red amount + warning icon = the journal amount does not match the source account balance.
Three figures = the amount posted, the actual ledger balance, and the amount left un-eliminated.
No flag = the two accounts agreed and the elimination was clean.
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