How to resolve Lacerte diagnostic Ref. 25262 - Total program service expenses on Form 990 Part III

This article will help to resolve the following diagnostic:

• Total program service expenses on Form 990, Part III, Line 4e does not equal total program service expenses on Form 990, Part IX, column B, line 25 (Ref. #25262).

This diagnostic will generate if:

• Expenses have been entered on Screen 35, Mission/Program Service Accomplishments, but not on Screen 34, Functional Expenses (990) or,
• Expenses have been entered on Screen 34, Functional Expenses (990) but not on Screen 35, Mission/Program Service Accomplishments.

There's a note on Screen 35 that says, "Note: The sum of all entries in "Program service expenses" should equal Form 990, Part IX, Line 25, Column (B) Program services (entered in Screen 34, Statement of Functional Expenses)."

If entries have been entered on Screen 35 but not on Screen 34:

1. Go to Screen 34, Functional Expenses (990).
2. Enter the percentage in, Program services (.xxxx) under the Allocation Percentages section.
3. Scroll down to the Expenses section.
4. Enter the expenses in the Total column.
   • An entry made in the total column will be allocated by the percentage entered in the Allocation Percentages section.
   • To override these calculations, enter the allocated expenses in the Program Services [O] column under the Expenses section.

If entries have been entered on Screen 34 but not on Screen 35:

1. Go to Screen 35, Mission/Program Service Accomplishments.
2. Select the 1 from the left panel.
3. Enter the Exempt purpose achievements (Ctrl+E).
4. Enter the Expenses.

Once entries made on both Screen 34 and Screen 35 are equal, the diagnostic should clear.