At some point in the prior year we created a new expense account in the Ledger, unfortunately, we selected Balance Sheet instead of Income Statement as the account type. After happily posting to this account for the past year, we have discovered the error. An attempt at correcting the account type results in this message "Account XXXX has an Opening balance or a Closing amount in a Prior Year, the Current Year or Next Year. The account type cannot be changed." Now in the current year, the balance from the prior year is appearing where it shouldn't. Any suggestions for correcting this error that would avoid posting journal entries to forcibly correct affected balances?

What version of Adagio Ledger are you using? Making this mistake is very difficult to do in the current version.

Unfortunately, you're going to have to chat with your Adagio Consultant to decide the best way of dealing with this. I'm assuming that you have opened Next Year? Presumably, if you had closed this account last year with the wrong type, someone would have noticed.

You can unpost all the batches since the year was opened to get rid of the opening balances, and then change the account type and repost all the batches. That is, unless you have consolidated any of the accounts.

Thanks! I like your suggestion, this is a workable solution for us.