Just needed some help with a new client of mine, the work is done on Sage but the creditors and debtors are in a mess. I need to clear the balances but not sure where to post the dummy invoices and credit notes to.
For example, if a purchase invoice was posted to training, it must have been paid but from a couple of years ago so not worth trying to trace, so where would I post the dummy credit note to?
If the items were paid, cash received etc but that hadn't been posted I would probably clear it to a Directors Loan Account, or to Drawings - on the basis that the owner/director has either paid or received it personally.
If the invoices relate to old transactions in previous years their accountant would have already accounted / made adjustments for these in the relevant year !
Therefore, you are just doing a sort of `housekeeping`, general tidy up of the ledgers so you can start afresh I assume. I would make a written note of the dummy invoices and credit notes you need to post to get the relevant ledgers in order, and give this to their accountant at year end, once year end procedures have been completed the suspense account will clear. Just double check that all purchase and sales invoices have either been received or paid.
