I have run the Year End on both my GL and AP. Now that we are in the new year, I've realized that one of the open Invoices at Year End was wrong. I've entered an Adjustment to correct the Invoice and issued a cheque for the balance, all in the new year. The problem is that once the Adjustment reaches the GL, it will result in an entry to the Expense in the new year. Now the balance of the expense account is (1560) in the new year start. But the balance of this expense account should be zero. What would be the best way to handle this situation? How to adjust (1560) to zero?

Hello Faye,

Did you date the adjusting transaction for last year, or did you give it today's date? The opening balance of that expense account will be $0.00 - the credit is in your new year if you dated the adjustment today.