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

Hi Andre,

I think this question is more of 'Why did Receivables allow posting a transaction to a closed year?' rather than 'Why did GL allow the transaction to be posted?' Ledger will not allow posting of a closed period/year within Ledger itself (except for the special Post to Prior Year function), but it doesn't control behaviour in other applications.

Currently, Adagio programs (except for JobCost) do not warn during posting that a fiscal period is closed. JobCost is unique in that in has separately maintained 'entry periods' from Ledger. This is why the AR adjustment was able to be posted with an old date.

I seem to recall a discussion elsewhere on the forum regarding closed Ledger periods and posting in sub-ledger batches; if I find it, I will edit this post and copy the link here.

And to correct this, yes another adjustment for 8.79 needs to be posted in AR with the reverse debits/credits to cancel it to zero.

Thanks for your response and for including the link to the earlier discussion thread. I have forwarded both to the person who had asked me to post this question.

Thanks again!

Andre