Our accountants provided the year end journals and among them an small amount to be posted directly to Creditors control.
When I run Aged creditors report and trial balance for the same period there is indeed a difference for that amount, but I'm not confident the journal is correct?
Any comments appreciated!
Replies (8)
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Which package are you using?
Normally you go via the creditors module so I guess you would need to know which creditor this related to.
Not sure which software you are using but any year end journals which I have done, (usually sage) I would post the creditors/debtors adjustment to suspense (as cannot post to general debtors/creditors and would need to allocate to specific debtor/creditor). I would then go to creditors/debtors and post the relevant invoice or credit to the specific supplier/customer with the other side of the entry going against suspense (to contra out the opening balance posting going to suspense),
hope the above makes sense
This is plainly a question for the accountant who gave you the journal entries. It is quite common that loose ends like this remain to be tied up after year end journal entries have been posted. Why have you not asked them?
Ask your accountant which creditor the adjustment relates to and use the proper P/L posting method.
In what respect do you think the journal is not correct? Do you think it should be a debit/credit to the Creditors Control account but the journal indicates a credit/debit? Do you think that the Aged Creditors report is incorrect and the Nominal Ledger is correct? As recommended above, I do think that the accountant is the place to start.
If you happen to be on a Sage Line 50 / Instant system, there are a number of products offering free trials (BVXL, Pendragon Systems; Optegra Financial Software; our own Onion Reporting Software; and, others) that can detail the breakdown of the Creditors Control account in the Nominal Ledger by supplier (the sub-ledger listing total is normally regarded as the definitive Creditors figure) - thus highlighting any "journal only" difference. Nothing lost if you want reassured that the Aged Creditors report is actually a correct representation of what the sub-ledger totals to.
I hope this helps.
Ian
Onion Reporting Software Ltd
Sage accounts in Excel to go
Sage
You really should not make journal postings to control accounts.
In this case you would alter the control account balance but not the underlying ledger. Use the purchase ledger posting routines.
The difference between the TB and aged creditors can happen if a purchase payment is entered with a date pre-year end but the invoice it is allocated to is dated post-year end. This could be your first avenue to explore.
Have you performed a search in financials for the amount in question?