Where to Enter the Balance Sheet in UltraTax CS
Screen L in the Balance Sheet folder holds the balance sheet, and what you enter there appears in the Schedule L asset and liability sections. Screen L-2 continues it, with retained earnings fields that should normally be left blank. If the balance sheet is out, UltraTax generates a diagnostic and the Return Summary shows the difference.
- Balance Sheet folder
- Screen L
- Assets and liabilities
| Trial balance account | UltraTax CS screen and field | Lands on |
|---|---|---|
| Cash | Screen L, Balance Sheet folder | Schedule L line 1 |
| Accounts receivable and allowance | Screen L, as two separate fields | Schedule L lines 2a and 2b |
| Inventory | Screen L, or tax code 280 or 403 from the ledger | Schedule L line 3 |
| Fixed assets and accumulated depreciation | From the asset module | Schedule L lines 10a and 10b |
| Retained earnings | Screen L-2, normally left blank so M-2 drives it | Schedule L line 24 or 25 |
| Partners capital (1065) | Screen M1M2, or Screen L force field for a book basis balance sheet | Schedule L line 21 |
| Complete Schedule L when not required | Checkbox on Screen L | Forces the schedule for this client |
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Try it freeWhere to Enter the Balance Sheet in UltraTax CS on a trial balance
| Acct # | Account | Debit | Credit |
|---|---|---|---|
| 1000 | Cash | 42,800.00 | |
| 1200 | Accounts receivable (the account this page is about) | 68,500.00 | |
| 1300 | Inventory | 55,000.00 | |
| 1500 | Equipment | 145,000.00 | |
| 1510 | Accumulated depreciation | 47,500.00 | |
| 2000 | Accounts payable | 28,400.00 | |
| 2100 | Accrued expenses | 9,200.00 | |
| 2400 | Notes payable | 92,000.00 | |
| 2450 | Due to shareholder | 15,000.00 | |
| 3000 | Common stock | 10,000.00 | |
| 3900 | Retained earnings | 86,300.00 | |
| 3950 | Shareholder distributions | 52,000.00 | |
| 4000 | Gross receipts | 612,000.00 | |
| 5000 | Cost of goods sold | 318,000.00 | |
| 6000 | Salaries and wages | 88,000.00 | |
| 6050 | Officer compensation | 72,000.00 | |
| 6300 | Depreciation expense | 21,500.00 | |
| 6900 | Other operating expenses | 37,600.00 | |
| Total | 900,400.00 | 900,400.00 |
Screen L and Screen L-2
Screen L in the Balance Sheet folder is where the balance sheet is entered, and the information entered there appears in the Schedule L sections. Screen L-2 continues it and holds the retained earnings fields.
The counterintuitive part is that the retained earnings fields are normally left empty. For Schedule M-2 to agree with Schedule L, Thomson Reuters guidance is to leave the Screen L-2 retained earnings fields blank and not assign tax codes 467 to 470 to them, so the figure is driven by the M-2 roll forward instead.
Let the asset module own the fixed assets
Fixed assets and accumulated depreciation come from the asset module rather than being typed on the balance sheet. Entering them by hand on Screen L sets up a disagreement between two places that both claim to know the answer, and the balance sheet loses.
Beginning accumulated depreciation is the exception that still needs attention on a new client, because nothing in a first year file knows what it was.
Partner capital on a 1065
Capital is maintained on Screen M1M2, in the Analysis of Partners' Capital Accounts section, with the capital account method set in Screen K1Misc. Schedule M-2 and item L of the K-1 both come from there.
If Schedule L capital has to differ from M-2, for example because the balance sheet is kept on a book basis, Screen L has a Partners' capital accounts (Force) field and a reconciliation statement. Otherwise, verify that nothing is entered in those force fields, because a stale force is a common reason the two disagree.
The diagnostic and the Return Summary
UltraTax reports an out of balance balance sheet through a diagnostic, and the Return Summary shows the difference. That difference is the most useful number available: search the trial balance for it, and for half of it.
For new clients the default rounding tolerance is $10, so a very small difference may be absorbed rather than reported. Worth knowing when the schedules look right and something still feels off by a few dollars.
Printing it at all
If the client falls under the thresholds, UltraTax does not complete Schedule L. The per client fix is the Complete Schedule when not required checkbox on Screen L, and there is a global setting for every client.
Tax return treatment
| Form | Line |
|---|---|
| Form 1120 | Schedule L, from Screens L and L-2 |
| Form 1120S | Schedule L, from Screens L and L-2 |
| Form 1065 | Schedule L, with capital from Screen M1M2 |
Common questions
What screen is the balance sheet in UltraTax CS?
Screen L in the Balance Sheet folder, continued on Screen L-2. What you enter on Screen L appears in the Schedule L asset and liability sections.
Why should I leave the retained earnings fields on Screen L-2 blank?
So Schedule M-2 and Schedule L agree. Thomson Reuters guidance is to leave those fields blank and avoid assigning tax codes 467 to 470 to them, letting the M-2 roll forward drive the ending figure.
Where is partner capital entered on a 1065 in UltraTax?
On Screen M1M2 in the Balance Sheet folder, in the Analysis of Partners Capital Accounts section, with the capital account method set in Screen K1Misc. Schedule M-2 and item L of each K-1 are built from those entries.
How much of a difference does UltraTax ignore?
For new clients the default rounding tolerance is $10, so differences inside that may be absorbed rather than reported. Larger differences generate a diagnostic, and the Return Summary shows the amount.
Related answers
Go deeper
This page is the short answer. These articles work through the same ground in detail.
Last reviewed October 17, 2026.