Equity Tie-Out
Investor capital records the cumulative effects assigned to investors. The GL can represent the same net interest partly in equity accounts and partly in income and expense accounts whose earnings remain open. Comparing capital only with equity would then omit those earnings. Equity Tie-Out adds Open P&L to GL Equity before comparing the result with Capital Account NAV.
Open Accounting → Fees & Capital Allocations → Equity Tie-Out to review that agreement by Share Class and currency. The comparison also exposes amounts lacking a class assignment, which an Entity-wide agreement could conceal.
Scope the comparison
Choose Entity, Accounting Period, optionally Share Class, and Recon Status. Select All when checking whether rows exist; Exceptions hides Ready results.
The fictional Cedarbridge Example Fund LP (Entity 1) scope has no capital accounts and no Posted journals, so the comparison has no populated class/currency rows. Draft journal #1 is excluded from the posted-GL side. Subscription Coverage still has a missing-account blocker.
Read the equation
The adjustment brings two accounting presentations onto a comparable basis: the investor ledger's cumulative capital versus the GL's equity plus cumulative unclosed earnings. Open P&L is not an additional distribution or bank receipt. Variance subtracts the adjusted GL amount from the capital ledger, so a negative variance means capital is lower than this GL measure. Trace the missing or differently classified effect before deciding which side needs correction.
Each row represents a Share Class and currency with relevant balances. Amounts without a Share Class can appear in a separate unassigned row.
Adjusted GL Equity = GL Equity + Open P&L
Variance = Capital Account NAV − Adjusted GL Equity
Suppose a class has capital-ledger NAV of USD10,300, Posted GL equity of USD10,000 and cumulative open P&L of USD300. Adjusted GL Equity is USD10,300, and variance is zero. If the capital ledger still shows USD10,000 while the GL amounts are unchanged, variance becomes −USD300. Start by explaining that missing or differently recorded USD300 before requesting a balancing entry. These amounts illustrate the equation; they are not saved records in the empty core scope.
Capital Account NAV is the cumulative capital ledger through period end. GL Equity and Open P&L use Posted journal lines through that same date. Open P&L is the cumulative income/expense-account balance, not just the selected quarter's activity. Credit amounts increase these GL-side balances; debit amounts reduce them.
An absolute variance of 0.01 or less is Ready for the amount check. An unassigned-class row is Blocked even if variance is zero. No currency conversion is performed.
Investigate a break
- Match Entity, period end, Share Class and currency on both sides.
- Use Roll-Forward and the capital-account transaction history to explain the capital-ledger amount.
- Use Accounting Operations → Journal Explorer with the intended Entity, period and accounts. Review Posted status, dates and class dimensions. Expand beyond the quarter when investigating cumulative opening balances.
- Route missing or misclassified journal dimensions and capital movements to Accounting; correct underlying source facts with FundOps where necessary.
- Recheck Subscription Coverage and Class Roll-Up separately. This amount comparison does not establish that every subscription is covered.
The capital-account population here does not apply the same lifecycle-overlap rule as Roll-Forward. Reconcile the actual scope before comparing totals between tabs.
An empty table or zero variance is not proof of a complete GL, approved NAV or finished close. Ignored exceptions can also be suppressed from the visible population.