PSA L&P - Entity: Each entity must have a Net Asset Account associated with it before continuing (to close the year)

How to close the year when the following message displays on the End of Year Process: All entities must have a net asset account associated with them before continuing

This image is an example of what your screen looks like when you do not have a Net Asset Account set up for an entity.

Any time an entity is used in an Income or Expense transaction, that entity must have a Net Asset Account which is assigned to it. 

If the Entity is a valid entity against which there are valid expense or income transactions, simply ensure the Net Asset Account has been created and then link the Entity with the Net Asset Account. If not, please continue.



The Entity was used in error

If the Entity was used in error, you must find the Income and/or Expense Accounts which were used in error and move the transaction(s) from the wrong account. 

To find out which income or expense account has been used with the wrong entity, run the Trial Balance Report for the Entity and for the fiscal year you are trying to close. Make sure to choose the option to include the Account Code on the report.



If the entity is used in error, there are generally very few transactions. Clicking on the transaction number will take you directly to the transaction. Or, you may print the report and use it to look up each transaction or to find out which account code was used in error.

 Continue to How to fix this issue.


How to fix this issue

If this entity was used mistakenly, you must either edit the transaction or use a journal entry to transfer the amount from each account to the account which should have been used in the transaction(s).

If you are part of a larger organization such as a diocese, you may contact them to get advice on how to handle the correcting transaction if you don't already know. Once the balance on this account is zero, you may prevent further erroneous activity by archiving the account.

  • In the example above, clicking on the Journal Entry Transaction Number opens the Journal Entry screen. Since this entry has not been marked on a Bank Reconciliation and since the transaction is in the current accounting period, simply edit the transaction and select the correct Expense Account.
  • If the transaction cannot be edited, create a journal entry on the date of the original transaction which credits the wrong account and debits the correct account (for this example). 

Once the transaction balance for the wrong account is zero, you may mark it as inactive so the mistake is not made again. To do so, go to Accounts and find the account. Mark the Archive Box and submit.




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