I am having an issue in ProSeries with the California Form 100S where the Schedule M-1 is out of balance, but the Federal 1120S Schedule M-1 balances correctly.The program gives an error indicating that the California M-1 is out of balance and says a manual adjustment is required, but it does not specify where the adjustment should be entered.Details:Federal return (1120S) shows no M-1 issues.The imbalance only appears on the California side.I have reviewed book vs tax differences and do not see anything missing.I have checked:Meals limitation differencesDepreciation differences (federal vs CA)State tax addbacksDifferences in officer compensationPrior year retained earnings balancesI have reviewed the CA adjustments worksheets but cannot identify where ProSeries expects the manual adjustment entry.Diagnostics only state the M-1 is out of balance but do not provide a direct input location.Has anyone encountered this issue?Where exactly in ProSeries do you enter the manual adjustment for the CA M-1 balance difference?Any guidance would be greatly appreciated as I have been trying to resolve this for several days.

@mg76 Thanks for posting here on the Community! If you are encountering an “out of balance” error on the California M-1, but aren’t able to find the schedule, it is likely suppressed by the software due to the $250,000 asset/receipt threshold. To resolve this so that you can make the manual adjustments, follow these steps: Open the Federal 1120-S Go to Page 2, Schedule B Locate Question 11 (regarding the $250,000 threshold) Apply a manual override to the “Yes” checkbox. This will turn the checkmark Red, indicating a manual override Once the override is applied, navigate back to your California return Now, click on Form 100S p4-6 Scroll down to Schedule M-1 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return Make your adjustmentShould you need further assistance please reach out to ProSeries Support for assistance. Thanks!

M

mg76

Level 1

Question

California Form 100S – Schedule M-1 out of balance but Federal 1120S is correct

Forum|Forum|3 months ago
March 30, 2026
1 reply
2 views

I am having an issue in ProSeries with the California Form 100S where the Schedule M-1 is out of balance, but the Federal 1120S Schedule M-1 balances correctly.

The program gives an error indicating that the California M-1 is out of balance and says a manual adjustment is required, but it does not specify where the adjustment should be entered.

Details:

Federal return (1120S) shows no M-1 issues.
The imbalance only appears on the California side.
I have reviewed book vs tax differences and do not see anything missing.
I have checked:
- Meals limitation differences
- Depreciation differences (federal vs CA)
- State tax addbacks
- Differences in officer compensation
- Prior year retained earnings balances
I have reviewed the CA adjustments worksheets but cannot identify where ProSeries expects the manual adjustment entry.
Diagnostics only state the M-1 is out of balance but do not provide a direct input location.

Has anyone encountered this issue?
Where exactly in ProSeries do you enter the manual adjustment for the CA M-1 balance difference?

Any guidance would be greatly appreciated as I have been trying to resolve this for several days.

ProSeries Professional

IntuitKatie

Moderator

@mg76 Thanks for posting here on the Community!

If you are encountering an “out of balance” error on the California M-1, but aren’t able to find the schedule, it is likely suppressed by the software due to the $250,000 asset/receipt threshold. To resolve this so that you can make the manual adjustments, follow these steps:

Open the Federal 1120-S
Go to Page 2, Schedule B
Locate Question 11 (regarding the $250,000 threshold)
Apply a manual override to the “Yes” checkbox. This will turn the checkmark Red, indicating a manual override
Once the override is applied, navigate back to your California return
Now, click on Form 100S p4-6
Scroll down to Schedule M-1 - Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Make your adjustment

Should you need further assistance please reach out to ProSeries Support for assistance. Thanks!

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