I have just taken on a new client that has been using Adagio for three years. As I reviewed their data I found 7 balance sheet accounts that were set up as income statement types and 3 income statement accounts that were set as balance sheet types.

How do I get this issue fixed? Toolkit for Adagio will not fix this type of problem and I am told that Gridview read/write will result in corrupt data if you change the type.

Hi Lyndon,

If those accounts have not been created in the current year, but in any historical year, they cannot be changed. Nor can they be changed if there is an opening or current balance on the account. The solution is to recreate the accounts from scratch, transfer the balances from the bad accounts to the new accounts with a journal entry, and include Notes in the accounts for the auditor. Attempting to fix the account type once an account has activity or undergone a year end will result in data corruption, which is why we removed the ability of editing the account type in the specific instances.

Can Softrak fix the problem with the tools you have at your disposal if the data is sent to you?

It would require a database repair which does have a cost associated with it. You can upload the data to our dbr site and we can look at it.

Of course, they'd want to know the version of GL used, accounts affected, etc.

Money well spent in my opinion.

Lyndon:

When Softrak does a database repair of this type you want to be very careful to ensure that the accounting implications are considered.

As the latest GL version is brand new I haven't tried this yet but it allows you to post transactions to any prior period. I'm thinking that it could be used to correct this problem. Some careful planning will be required and you would want to test it first on a copy of the data. At the end of the day it may not be any cheaper (as your client should pay for the time to do this) but as you are using transactions batches there would be a full audit trial.

If you are interested in discussing this further please give me a call.

If there is a systematic approach it could be added to the Toolkit. Feel free to email me the details.

Hi,

Doug's points are well taken regarding the accounting implications.

We run into this same scenario but usually just in the previous year, not in multiple prior years. I presume with the ability to post to any prior period, our previous solution would work, after considering the accounting implications.

The key to being able to change an account type is that the balance needs to be zero at the end of the year. So create a Journal Entry that transfers an income account balance at year end to another income account and balance sheet account to another balance sheet account, for each year end that you need to consider. Use some relative description for the details.

Backup your data.

So start in the oldest year and create a YE "reversal" batch to take the balances to zero as period 12. Archive this batch for each year. And post. This will take each year's account balance to zero. When all YE balances (for selective accounts and years) for the selected accounts are zero, you can change the account type, to the required type by editing the account type.

Then Copy the archived batch(es). With reversed entries for the copy settings to period 12, and post to each respective year. This has the effect of reversing the previous entry that set the account year end value to zero, and with the new account type, will close out to the year settings properly for the new income and balance account types.

We have not tested on GL9.1A but works well for previous ledger versions 9.0 when the previous year has been closed but we can still post to the prior year.

Best,
Brian

In the past we did fix these types of problems on our own. In the year subsequent to Adagio adding the "enforce account groups" feature we insisted on enforcing these settings for all our clients. We have not experienced this problem for years. This, however, was a new client that had not been set up properly. When we tried to use our past method to fix the problem (creating the appropriate journal entries to retained earnings) we discovered that Toolkit no longer allowed us to move data from an account of one type to another. The only other option was to have Softrak perform the data repair.