Resolve the All Entities Need Net Asset Accounts Error

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The goal is to resolve the red banner error, "All entities must have a Net Asset account associated with them before continuing." 

This issue occurs when you attempt to close the year, but one or more entities are missing Net Asset accounts. 
 

Identify the Issue

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

Valid Entities 

If the Entity is valid with legitimate Expense or Income transactions, complete the following steps:

1.  Ensure the Net Asset Account has been created.
   • Instructions for Adding Accounts in ParishSOFT Accounting
2. Link the Net Asset Account to the Entity. 
   • Instructions for Linking Net Asset Accounts to Entities

In most cases, this will resolve the issue.

If the Entity was used in error, continue to the next section. 

Entity Used in Error

In this case, you must identify which income or expense account was used for the wrong entity and move the transaction to the correct account. 

1. Navigate to Ledger and Payables > Reports.
2. Select the Transactions drop-down menu.
3. Choose the Trial Balance Report. 
4. Under Date Range, choose Custom Date Range Specified, and enter the Fiscal Year to report.
5. Select the Entity used in error.
6. Under Report Options, check the box for Print Account Codes. 
7. Select Preview Report, or View PDF. 
8. Now, you can review the report and use it to look up each transaction or to find out which account code was used in error.

Important: Clicking the transaction number will take you directly to the transaction in the software. However, if you click the "back" arrow on your browser, the software may get stuck, and you will need to restart your browser by closing all tabs. Any unsaved work will be lost, and our Support team cannot recover it. 

Steps to Resolve

When an Entity was used in error, you must either edit the transaction or use a Journal Entry to transfer the amount from one account to the account that should have been used.

Note: If you are part of a managing organization, such as a diocese, you must contact them to get advice on how to handle the correcting transaction.

Edit the Transaction

Only when the Payment has met the following criteria can you edit the transaction information and select the correct Expense Account.

1. The transaction has not been marked on the Bank Reconciliation. 
2. The transaction is in the current accounting period.

Otherwise, the transaction cannot be edited, and a Journal Entry must be created. 

Create a Journal Entry

1. Navigate to Ledger and Payables > Journal Entries. 
2. Enter the Date of the Original Transaction. 
3. Line item 1 credits the wrong account.

4. Line item 2 debits the correct account.

   

5. Continue these steps until the transaction balance for the incorrect account is zero. 
    

Important: Once the account balance is zero, you can prevent further erroneous activity by archiving the account.

Updated June 04, 2026 13:48