I apologize.  I am working in Lacerte.  

Do you clear your diagnostics?  If you haven’t look at diagnostics, look for a link or instructions there.   I would assume all softwares would have diagnostics.  Lacerte gave me a link.  

If it is not in diagnostics, where do you go to adjust Schedule M1?  Where do you go to enter balance sheet data and options?  In Lacerte there is a drop down menu for page 5 form 1065, page 4-5 of 1120S.  There are 4-5 options that drop down (Balance Sheet, Balance Sheet Other, M1-M-2, M-3, Member Basis).  One says Balance Sheet Other.  If you’re working in Pro, I would look at the detailed options in that area of the Software.  

If there is still nothing, you’ll have to do an offset entry to clear it being put into M1.  Lacerte is assuming that you have not accounted for it on the books, but we all have.  So the option we have for the software to ignore that assumption resolved the issue.  If you don’t have this, then you’ll need to either reduce salary directly and delete the ERC amount the software is using to calculate reduced wages or create an offset in M-1 that will clear out the auto adjustment.   The auto adjustment is an error.

I would think Pro Series should have the same option to not do that adjustment.  It’s something like “enter 1 to force adjustment, enter “2” to force no adjustment.  

Little things (important little things!) like this hidden in the software is so frustrating!

Good luck 🙂