Hello everyone!

I received the following e-mail from our Controller and wanted to pass it on to the forum. She raises two questions:

1. Why would GL go back into a long closed fiscal year and make GL adjustments there. Shouldn't it leave closed years alone?

2. She asks how to avoid what had happened in the future. I think she basically answered the question herself by saying what she probably should have done (reverse credit and reissue), but I just want to check to make sure that would be the correct thing to do.

Thanks in advance!

Cheers,

Andre

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Hi Andre:

Here is another situation that I am not sure why it happened from the perspective that it is from a prior fiscal year period that has been closed.

It seems under Customer #GRILL4, there was an adjustment (ADJ #AD1373364511) done on 05/10/2006 for -8.79. On this adjustment it said to apply the credit to Inv #169614. At the time the credit was issued, there was no such invoice number under this account. Instead of reversing the credit and re-issuing the credit to be applied to the correct invoice, we offset the credit to pricing along with the remaining balance from the correct Inv #139614 (so it would be a wash).

Now 2 years later, Adagio has taken this old adjustment (now considered "historical data") and applied it to the correct invoice (Inv #169614) under Customer #GRILL4. I get why it would think to do this, but the accountant in me says if that Fiscal Year has been closed for 2 years and this adjustment is considered historical data why would it do this?

Now I have a situation where the A/R Aged and A/R Overdue reports give me a total that is $8.79 less than what the GL states. This is not good.

How can we avoid this in the future? Please advise.

Thanks.

Stephanie