Hi kimpossible , if you generate the report for a date in the future, eg 31/12/2023, does the out of balance still appear?
Converting an order to an invoice would cause the invoice total to appear in receivables, and if a deposit had been paid, that amount would be automatically transferred to the credit of the receivables account. Is this the transaction you are referring to?
Customer deposits on orders go to the specified linked account. If that account was changed between receiving the deposit and converting the order, then there may be an offsetting amount in the linked account.
Hi Mike_James ,
Yes, it is related to that.
My staff accidentally encoded 31/08/2222 upon convert to invoice phase.
To clear out the floating amount in the deposit and trade debtors, we did the following:
1. Create a credit note [negative sales invoice] using client deposit instead of income account - dated 31/08/2022
2. Create a normal invoice using client deposit instead if income account - dated 31/08/2222
3. Apply to sale was dated 31/08/2222.
Receivables recon is balanced only if I date it 31/08/2222;
Statement of Account reflects the correct balance of the client as of current date.
Hope you can help me on this.
Thank you.
Hi kimpossible , the entries you have put through leave a credit entry in Debtors in August 2022, a debit entry in Debtors in 2222, and the income reported only in August 2222.
To correct this, try entering 2 general journals:
In Aug 2022: DR Receivables, CR Income (& Taxes if any)
In Aug 2222: DR Income/Taxes (& Taxes if any), CR Receivables
That should remove the out of balances on debtors and report the income correctly in 2022. Let me know the result.
Hi Mike_James ,
All balances are tied up after all the correcting entries I made.
The error in the out of balance is not in the general ledger anymore. It is in the receivables amount presented for such client.
Also, I just noticed, the activity statement of account reflected correct balances for the client, but the aging details below the statement (current, previos month and prior months classification), has an error. There is a negative balance in the prior months portion showing negative balance.
Would it be better if I reverse first all entries made for correction for better analysis? Hope you can help me on this. I tried several approaches and receivables out of balances can be eliminted; however, the activity statement aging portion is still showing the negative portion in the prior month.
Currently, I am not able to determine the composition of the negative portion showing in the aging but this might be connected to the error in deposit application as the deposit was initially recorded in 2021 and was converted to invoice using 2222 date.
Your responses are greatly appreciated.
-Kim
Hi kimpossible , I would recommend not reversing your corrections, it will make further review harder.
Is your file in the cloud?
