How do I record late entries for an earlier period?

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.

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.

 NOTE: Posting a journal to the debtors or creditors control account updates the nominal ledger, but doesn’t reflect in the individual customer or supplier records. As a result, the aged debtors or creditors reports remain unchanged, leading to a discrepancy between the control account and the subledger. 

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. 

1. Go to Nominal codes then select Journal entry.
2. Enter a reference, then enter the same date as the original transaction you posted.
3. 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

4. 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

1. Go to Nominal codes then select Journal entry.
2. Enter a reference then enter the same date as the original transaction you posted.
3. Enter the relevant information for the journal, using the same nominal code as your original transaction.

For example:

4. 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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