year end adjustments

Hi

i am trying to post year end adjustments and need some help. I need to debit prepaid expenses (1201) and credit Insurance (5140). i can't do a journal entry because i can't post to prepaid expenses. Also i need to debit maintenance expense (5130) and credit accounts payable(2012). These are both linked accounts 

  • Since it looks like you are using Sage 50 CA, I am going to move this post to that Support Group since it was posted in the incorrect forum.

    Thanks,
    Derek
  • Prepaid expenses is probably linked through your Accounts Payable. I would rename that account to Prepaid Deposits renumber it to 1202, and make a new account for Prepaid Expenses #1201 that you can post the year end adjustment to. Then for the adjustment to accounts payable you either can post a bill to a vendor if the bill was missed and should have been recorded, or if this is to setup an accrual not an actual bill, you can post it to maintenance expense and accrued liabilities (new account, try #2013) instead of accounts payable.
  • When setting up the payment to your insurance company, you could record the current period's insurance (i.e. 173 days / 365 days) and record the remainder of the year's insurance to a new account 'Prepaid insurance'.

    Or, if you want / need to use the prepayment linked A/P account, record the current year's portion of the insurance as an invoice from your insurance company, and record the full amount of the payment, using the Prepayment field on the payables screen.

    To adjust it now, you could adjust the existing payment - reduce the amount applied against the invoice, and record a prepayment, THEN adjust the invoice. You DO NOT want to adjust the invoice first and create a 'Credit Note'.

    For the Maintenance Expense / Accounts payable entry, ask who it's for, possibly all you have to do is open an invoice and post an adjustment to the date, to put it into the correct fiscal year.

    I would not force amounts into a linked account. It can be done, but it shouldn't be. Find another way, or ask your external accounting professional if they REALLY need that entry posted, or is it just a 'presentation' entry.