We are in the midst of our 2010 year end audit and we have discovered that our amortization account was set up as an asset as opposed to an expense. When we ran close year for 2009 the amortization expense did not close out to our retained earnings account.

So, for 2010, our opening balance in equity is wrong and we also have an asset balance in amortization.

We have also created a new fiscal year.

Is there any way to do a prior period adjustment so that our 2009 financial statements are accurate? I tried to unpost the batch but it wouldn't let me because it was from 2009.

Hi Rebecca

This is the kind of problem that you can't fix yourself. I am an "expert" Adagio consultant and I can't even fix it, because it requires special tools I don't have. You will need to send your data to Softrak (or another data repair company but Softrak is the one I would recommend) and get it repaired by them.

In the future, before opening a new fiscal year or closing a year, make sure that all of your accounts have the right account type.

Your other option is to find a backup set of data that is from a time before 2009 was closed, and if you want to go that route, I would have to advise you on the steps to take with that data.

Steve

Thank you. The actual entry was only made a couple of months ago. I'm not sure if we have a backup but I'll contact our systems support to find that out first before I send the data off to Softrak.

For others reading this post, Steve's comments are bang on - provided that the fiscal year 2011 has not yet been created. Once fiscal year 2011 is opened (as a Next Year), then 2009 is off-limits to post to. The original entry may have only been a couple of months ago, but it certainly is important to know what processing has been done since then.

If you haven't gotten that far yet, and 2010 is still your current year as defined in the company data, then you still will be able to create a batch and 'Post to Prior Year' to update 2009 (assuming that the ability to Post to Prior Year has been enabled in the GL Company Profile and security allows access).