A small discrepancy (a dollar or two) between the numbers reported on the 1065 or K-1 when compared to the year-end distribution and/or 1099 is normal due to rounding in the accounting and tax forms.
If the difference is more than that, and there are no identifiable transactions in the amount of the discrepancy, here is a checklist of items to review:
Make sure that all dividends from stocks for the previous year have been entered in the Security Section, and NOT in the Cash Section. The ex-dividend date must also be entered for all dividends received. If you have stock dividends recorded in the Cash section, they must be deleted and re-entered.
Do you have any prior years without an Allocation of Income and Expense? An Allocation should be run at the end of each year. Confirm that you have done so by viewing the report “Complete Journal/Ledger” for 12/31/YY dates: Click the REPORTS tab near the top of the page, and then Allocation of Income & Expenses, near the bottom of the page. If the drop-down menu under the Year of Allocation heading is missing any year, use the link above the report, to perform an allocation for that year.
Do you have zero balances in your Complete Journal/Ledger at the start and end of the year? To find out, view the Complete Journal/Ledger with 01/01/YY as your Start Date and 12/31/YY as your End Date. Check if the beginning and ending balances in three key columns --Div. & Interest Received, Misc. Received, and Gain on Sales-- are NOT zero. If you have any amounts in the start or end balances in these columns, then you may have some transactions in an earlier year that are causing problems and that must be resolved.
If any of these circumstances exist, let us know and we can provide detailed instructions for correcting them.