I have a problem and I don't know how to correct it.
I have taken over from my old accountant who used to do the account in paper so I decide to change and start to use Sage. I entered in error an invoice that belongs to the previous year (09-10) but was paid in the year I am dealing now(10-11). Unfortunately I have reconcile that payment.
Invoice is dated 18 Jan 10 and was paid in Feb 10. Our year end is 31 jan 2010. The old accountant didn't bring foward an accrual for it either. Is the invoice supposed to be acrrued? Can find any in the acrruals account.
- Do a journal to reverse the original transaction and do a new replacing tranaction on 01 Feb 2010. or - Do a credit note on 18 Jan 2010 and new invoice dated 01 Feb 2010.
Not everyone knows how to do accruals and unless the amount is "material" once the year end is done, it can be problematic to post the transaction on the original invoice date. Invoices can be claimed in later periods. In a perfect world you'd have an accrual, or post the invoice on the correct date. But the year end has been done, so you have to do it using the next best option.
