Once my previous year is closed and I have invoices that are meant for that year that come in in April, how do I post it to the A/P account if I'm already working in the new year?

As well as with funds that come in in the new year that are for the previous year, how do I post these to the A/R account?

Hi Janice

You enter them the same way as if the year was not closed.

"Closing" your AP and AR really just resets the batch numbers back to 1, moves paid transactions to history, and zeroes out some statistics. What really matters is closing your Ledger, and that involves two steps: 1) giving your closing trial balance to your outside accountant, and 2) receiving and entering your accountant's adjusting entries.

Until the first step, you can continue working in the old year as usual. After the first step you should not allow activity to post to the old year other than what your accountant gives you. Also, at this point you would print out the final AP Open Payables and AR Aged Trial Balance reports whose totals agree to the Ledger trial balance. Any AP or AR activity that is retrieved with old year dates should be posted to the new year.

After the second step, you should officially close the Ledger.

Steve

One minor correction...

You should "Close" the general ledger when you give the gl to your accountant. The accountant's year end adjusting entries should be posted as a batch to the "prior year" when they are received.

So I post to the accounts they're suppose to be coded to or do I code them to an accounts payable and receivables account?
And when I post to the G/L I post to the previous year not the current year?
Sorry, just want to be clear.
Thanks for your help.

You post them to the accounts they are supposed to be coded to and retrieve them to the period based on the date of the transaction. If the year is open in Ledger they will post to the correct year. If not, they will be written to an error batch and you can decide what to do with them.

There are two "Show me..." videos on processing the year end and a check list document that can be helpful in the process.

Thank you!

Hi Andrew

Your correction is correct if the adjusting entries are to be posted to an adjustment period (i.e. period "13"). But if they are going to be posted to period 12, there is a reason to hold off closing the year until step 2. And that is if there is a chance that a prior year batch might have to be unposted.

On the other hand, it does get annoying to go to Next Year to enter journal entries.

Steve