We processed an invoice in A/P with a date of 03/12/09 for $134.27. We processed a credit note on 03/16/09 for $100.03 and issued a payment on 03/19/09 of $34.24. When reconciling our A/P subledger to our GL there is a difference of $100.03 - the amount of the credit note. Upon further investigation, it appears that the credit note was applied to the invoice on 11/14/43, which means that the open payables listing for this vendor includes the $100.03 in the balance, when the current balance of this transaction should be zero and therefore the outstanding balance should be less by $100.03. If I run the open payables report as of 11/30/40 the $100.03 is still outstanding. However, if I run the report at 11/30/43 the balance is zero. Is there a way to fix this so that the open payables report at 03/31/09 is correct? I need to somehow reverse the application of the CN in 2043 and reapply it in 2009. Hoping this is possible!


Thanks,
Tanja

When you say "it appears that the credit note was applied to the invoice on 11/14/43" do you mean that the credit note was actually dated 11/14/43? If so then just add a debit note for the error date and then another credit note for the correct date.

If by applied you mean that some method has already been tried to correct this and/or to match the credit note to the invoice incorrectly then you should give us a call to help you unravel any other transaction error that has caused this to occur.

Hi Tanja

Doug's answer assumes the credit note was DATED 11/14/43, as does mine. "Applied to the invoice on 11/14/43" is ambiguous.

Cleaning up future date transactions is one of the hardest things to do in Adagio.

The easiest case is if the transaction is still outstanding - then you simply enter a credit (if the transaction is an invoice) or an adjustment (if the transaction is a credit note) using the same wrong date, making sure to apply the correcting transaction against the original. Then you are back to square one, and you can enter a revised transaction using the correct date. You will have to slightly modify the document number when you enter the revised transaction.

The harder case is if the transaction has been paid but the check is still outstanding. In this case you need to first reverse the check so that the transaction is outstanding, follow the steps outlined above, and finally re-issue the check as a manual check using the same check number (don't select to print the check).

The hardest case is if the transaction has been paid and the check has been cleared. Then you need expert help.

Steve

Hi Tanja,

Adagio Payables V8.1B will make this an unlikely occurrence by preventing people from posting documents to closed (or not yet created) periods in your general ledger.

Well, if I look at the details of the original invoice, the Document Date is 03/12/09. However, in the middle "applied" section (i.e. where it shows what payments and/or adjustments are related to the invoice) it shows a Credit Note with an Applied Amount of (100.03) and a Date of 11/14/43 and a Payment with an Applied Amount of (34.24) and a Date of 03/19/09.

When I go to the Credit Note details, the Document Date is 03/16/09. However, in the middle "applied" section, it shows the invoice with an Applied Amount of 100.03 and a Date of 11/14/43.

So looking at the transaction detail for the invoice and the credit note, they both have Document Dates in March 2009. However, when looking at what was applied to each of those transactions that is where the 2043 date is appearing. In running the vendor transaction report there is nothing with a processed date of 2043, it seems only that the date that the transactions were "applied" to one another was done in 2043. I have no idea if A/P works the same way as A/R in that you can enter an invoice and then a subsequent payment and/or adjustment and then subsequent to that apply them against each other with some other date, but that seems to be what is happening.

As it stands right now, the transaction has been fully "offset" so the outstanding amount should be zero (at end of March 2009) however the system believes the credit note is not being applied until 2043 so that the outstanding payables are being reported as 100.03 higher than they should be, and will continue to report at this inflated amount until Nov 2043.

The only thing I can think is that the System Date was changed to 11/14/43 when the processor of this transaction logged into Adagio A/P. I have looked at the posting journal for the credit note and everything looks normal. Is there any way to check what system date was used when a particular transaction was created? Is it the system date that determines the "applied" date of a transaction to another transaction? The credit note is part of a larger batch of transactions, although they could have been entered over a period of time (such as a week) with different system dates.
The transactions have all gone to GL in March - invoice with date of 03/12/09, credit note with date of 03/16/09 and payment with date of 03/19/09, which matches the individual Document Dates in A/P.

It is very strange.

The applied date in Adagio comes straight from the document date of the transaction doing the applying - usually a check or a credit note. The system date has nothing to do whatsoever with anything.

Is your data clean? If it is and all of the transaction dates are in 2009, then you might need your Adagio consultant to look at this, using GridView. That program can dump data files into Excel, and with the Read/Write version can "fix" data such as a bad applied date.

Steve

Thank you for your responses. I will run an integrity check on our data and if the problem still exists we will likely have to have our data checked by our consultant as it will cause balancing problems for the next 33 years!

Thanks again,
Tanja