In HandiLedger, the Clear Suspense Account message is a result of transactions having been posted to the suspense account and not cleared prior to closing the year.
You will be unable to roll your client into the next accounting year if transactions exist in their suspense account.
Clear the suspense account
Log in to HandiLedger, then select your client and the appropriate year.
From the Input menu, select Clear Suspense.
If the full amount of the transaction is to be moved to one account code, highlight the transaction and click Select.
Highlight the correct account code and click Select.
Verify that the tax code is accurate and that the tax amount has been calculated correctly.
Click Save.
Once all suspense account entries have been moved to their correct account numbers, click Save, then click Close.
Note: Reducing the suspense account to a balance of zero is not sufficient. i.e. you cannot clear the suspense account using a journal entry.
Completing the Split Suspense Entry window
If you click Split in the Clear Suspense Account window, you can allocate a suspense transaction to multiple account numbers.
If the entire amount of the transaction has not been split to specific account codes, HandiLedger will place the remaining amount back into the Suspense Account.
Keeping an Audit Trail
HandiLedger does not maintain an audit trail of the transactions assigned to the Suspense Account and their subsequent reassignment to the correct account. When the entries are reallocated out of the Suspense Account, the entries are physically moved to the correct account – no trace of the entries will be left in the Suspense Account.
Where your practice requires an audit trail of movements in the Suspense Account, it will be necessary for an account other than the HandiLedger Suspense Account to be used for the recording of suspense transactions. Your practice will then be able to clear the suspense transactions using a journal entry to transfer them to the correct account code. As the reallocation is being performed via journal entry, an audit trail of the reallocation will then exist.