Summary
Description
You can post transactions into a period after you've run your reports and completed your month end or year end procedures.
For example, you receive a purchase invoice in January, dated in December. These are late entries. To ensure the values appear correctly in your accounts, you then post an adjustment to move it into the current period.
Resolution
If you've finalised your management reports and VAT Return, then receive a late invoice, you can still post a late entry.
To complete this process, you need to:
- Post the late entry using the correct tax point date. For example, the invoice or transaction date
- Reverse the value from the previous accounting period. Post a journal for the value using the transaction date
- Show the value in the current period's financial reports. Post a journal for the value of the late entry, dated in the current accounting period
Post your transaction
Create your purchase invoice transaction with the correct date.
Continue to the Remove the value of invoice from the previous period section.
Remove the value of the invoice from the previous period
NOTE: Posting a late purchase invoice causes discrepancies between the retrospective aged creditors report and the creditors control account.
- Go to Nominal codes then select Journal entry.
- Enter a reference, then enter the same date as the original transaction you posted.
- Enter the relevant information for the journal, using the same nominal code as your original transaction.
In this example, you posted a late entry purchase invoice of £/€200.00 plus VAT.
N/C Name Details T/C Debit Credit 5000 Purchases Late entry adjustment T9 200.00 2201 Purchase Tax Control Account Late entry adjustment T9 35.00 2100 Creditors Control Account Late entry adjustment T9 235.00 - Click Save then Close.
You've now posted the adjustment to remove the value of the late entry from the previous accounting period.
Continue to the Post the value of the invoice into the current period section.
Post the value of the invoice into the current period
- Go to Nominal codes then select Journal entry.
- Enter a reference then enter the same date as the original transaction you posted.
- Enter the relevant information for the journal, using the same nominal code as your original transaction.
For example:
N/C | Name | Details | T/C | Debit | Credit |
---|---|---|---|---|---|
5000 | Purchases | Late entry adjustment | T9 | 200.00 | |
2201 | Purchase Tax Control Account | Late entry adjustment | T9 | 35.00 | |
2100 | Creditors Control Account | Late entry adjustment | T9 | 235.00 |
- Click Save then Close.
Your current accounting period now includes the late purchase invoice. This value will now appear in your management reports for your current period.
NOTE: Adjusting after you run your year end won't reflect in any archives taken when you ran your year end process.
Posting into a previous financial year
Follow our Posting adjustments into the previous financial year article.
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