The following diagnostic is generating in the S-Corporate module of Lacerte:
There are discrepancies between the federal Schedule K and Schedule K-1 for certain line items. The totals for all Schedule K-1 for these line items does not match the corresponding amount on Schedule K. Please refer to the Schedule K/K-1 Reconciliation Worksheet for detailed information on the potential error(s) and adjust the amounts entered for Schedule K-1 overrides on screen 33 as necessary. (ref. #377) or (ref. #25513)
Follow these steps to check for discrepancies:
- Go to the Forms tab and select Worksheets from the left navigation panel.
- Under Page in the left navigation menu, select K/K1 Recon.
- Review the Worksheet to identify the discrepancies.
- The far right column will display the Difference between All K-1's and the Schedule K.
You may need to move items from Screen 33, Schedule K-1 Overrides to Screen 20, Income and Deductions or Screen 26, Credits.
Solution 1: If the difference is related to Property distribution other than dividends.
If the difference is related to Property distribution other than dividends you made an entry only on Screen 27, Other Schedule K Items, you need to make a corresponding entry for each shareholder.
Follow these steps to enter property distribution other than dividends for each shareholder:
- Go to Screen 8, Distributions, Loan Repayments.
- Enter the corresponding distribution amount for each shareholder.
- Make sure the Total Distributions on Screen 8 equals the amount in Screen 27, Other Schedule K Items.
Solution 2: If the difference is Other Credits.
If the difference is Other Credits, you need to enter the amount in Screen 26, Schedule K Credits.
Follow these steps to enter the Other Credits amount on Screen 26:
- Go to Screen 26, Credits.
- Select Other Credits - Sch. K Lns 13C - 13G from the Sections list in the lower left navigation menu.
- You may need to scroll to the bottom of the Sections list to find it.
- Enter the difference in Other credits (Ctrl+E).
- Delete the amount from Screen 33, Other Credits.
What if the Reconciliation Worksheet isn't generating?
If the Reconciliation Worksheet isn't generating on the Forms tab, do the following:
- Check the Number of Shares Owned subsection on Screen 6, Stock Ownership to make sure the entries are correct, or
- Check the Percentage of stock owned at year end (xx.xxxxxx) [O] fields to make sure they add up to 100%.