Year End Adjustments

SOLVED

Fingers crossed someone can help with this!

I am trying to determine how to make the Year End adjustments I got from our Accountant. I've been doing some research and I understand that you can't use the general journal for accounts such as AP and AR and so you have to make the adjustment through the respective modules. What I don't understand is how to do that, when they are not associated with Vendor/Customer accounts. I also have a payroll adjustment to make, however I don't know how to make it in the payroll module, because it's from a prior year. (We only received the adjustments for Year End Jan 31, 2013 yesterday). I've listed the adjustments I'm having trouble with below. Any help is greatly appreciated!

1. Debit Accounts Payable - Credit Accounts Receivable, Accounts Payable Year End, GST Payable, and Retained Earnings

2. Debit Wages & Salaries - Credit Vacation Payable

  • 0

    If your AP and AR GL control accounts currently reconcile to the AP and AR trial balance reports (subsidiary ledgers), it is true that you can't (shouldn't) make any entries to the GL control accounts via General Journal Entry. However, if your control accounts do not reconcile to the module trial balance reports, you would need to make the entries via GL General Journal Entry to get them back in sync.

    The payroll AJE looks like an accrued liability that should be posted via GL General Journal Entry, outside of the PR module. It had been our practice to then leave the liability outstanding throughout the year and adjust it to actual at each year end.

  • 0 in reply to RoadRacer

    Hi CohesionCassidy,

    Since it looks like you are using Sage 50 CA, I'm going to move this post to that group so that other users of this product will see your question and be able to offer their thoughts and insight.

    Thanks,

    Derek

  • 0
    verified answer

    For the adjustments to A/P and A/R you will need to know who the vendors/customers are that needs the adjustments. Once you find that out then you can do the adjustments to each vendor/customers thru the appropriate modules.

    This also applies for Payroll if the Vacation Payable is inked to payroll - there used to be a way one could change the accrued vacation pay amount which would have allowed you to just create a general journal entry for doing Nbr 2 but I don't see that now.

  • 0 in reply to Smith and Co

    Sorry - I didn't finished up on the sentence below which should read:

    - there used to be a way one could change the accrued vacation pay amount IN THE INDIVIDUAL EMPLOYEE PROFILE which would have allowed you to just create a general journal entry for doing Nbr 2 but I don't see that now.

  • 0 in reply to Smith and Co

    Thanks for your help! I've requested that information from our Accountant, so hopefully I'll be able to get these adjustments made.