I have uncovered that fact that some Cost of Sales for invoicing done late in April was not posted to the GL until early May. Being temporarily without a Book Keeper, I’m hoping someone can point me in the direction of how to go about correcting this.
- I’d like to move $26,300 posted to COS account 50000-00-00-100 on 05/01/2022 (period 5) to the month prior (period 4)
- I’d like to move $121,800 posted to COS account 50000-00-00-200 on 05/01/2022 (period 5) to the month prior (period 4)
- I’d like to move $51,700 posted to COS account 50000-00-00-300 on 05/01/2022 (period 5) to the month prior (period 4)
I’m fairly certain this is done in Journal Entry but I’m unsure how to go about it. Any help would be very much appreciated.
Thank You in Advance -
The posting may have happened on 5/1, but are you sure the actual apply date wasn’t in period 4?
And while I’m no accountant, but I’m pretty sure that you can’t post into a closed month. So unless April hasn’t been closed yet yo won’t be able to do what you want.
I only hang around accountants. Like Calvin said, if April is closed then someone would have to re-open it to make adjustments.
As far as adjustments go, I would see them do an accrual entry in April that gets reversed in May. That way, it cancels the accidental May posting.
Thanks Calvin, Thanks Mark!
Both periods are in fact still open… If an accrual entry in April that’s reversed in May is the way to go, Could you guide me on how to go about this? What does it look like in Journal Entry?
In 10.1.600., I would check the Reverse check box.
Careful with Journal Entries to your cost accounts!!! you could be chasing your journal entries for centuries!!!
If it’s something you definitely need to reverse, I would recommend to track your shipment and reverse then shipment (Open then change the ship date) instead of doing a JE
JE entry with immediate reverse would be your next option.
Thanks again for your help and for the words of caution. I won’t make any adjustments until I’m sure we’ve got it right…
It might help to know that this occurred simply because the Capture COS/WIP Activity process was completed a day late. Perhaps there’s a more clean cut way to undo and correct this?
No problem, just consider multiple factors in your solution.
Inventory Impact and subledger
Revenue recognition done? (Did you invoice and sent this to your customer?)
COS/WIP capture done with checkbox outdated transactions?