Entering prior year adjustments

 

Simplified menu - Click Settings, System Settings

Standard menu - Click  Settings, System Settings

Classic menu - Click System, System Settings

 

You can enter transactions for the prior financial year and you can print general ledger reports for the prior financial year.  To enter transactions for the prior year, first follow the steps below to create a prior year adjustments password.

  1. Click Edit image\edit20x20.gif, and on the System Settings tab, enter a password of your choosing in the Previous Year Adjustments Password field.  The password must be between six and eight characters long.

  2. Click Save image\save20x20.gif.

After creating a password, enter the prior year adjustments in the appropriate data entry programs, entering the prior year date.  Normally you will use the last day of your prior financial year.  For example, if your financial year is January to December, enter December 31 of the prior year as the date.  This will adjust the opening balance of your current year.  When prompted, enter your Prior Year Adjustments password.  Remember that if you enter transactions for the prior year, you must reprint your year-end reports.

 

Journal entries entered for revenue and expense accounts in the prior year automatically update your retained earnings control account opening balance for the current year.  Journal entries entered for asset and liability accounts in the prior year update the asset and liability account opening balances for the new operating year.

 

Note:  The Previous Year Adjustments password is good for one day only.  Therefore, if you need to record more entries at a later date, you must return to the System Settings screen and re-enter your password.  You can enter the same password again, but you must reset it on each day that you want to record entries for the prior year.

 

 

Journal entries

Entering journal entries

Editing journal entries

Entering half journal entries

Tips for entering journal entries

Automatic journal entries