Can you make adjustments to accounts after a finalized year end in Sage?

Can you make adjustments to accounts after a...

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A year end has been run in sage (50 Accounts 2011).

The year end adjustment journals (from auditors) have been entered incorrectly.

Is there any possible way i can re-open the previous years accounts and make the necessary corrections?

Will the brought forward figures be adjusted automatically? (i doubt it). Will i have to make the adjustment in the current year?

Thanks

Replies (6)

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By johngroganjga
10th Apr 2013 12:41

Surely much easier to put the correcting entries through in the current year.

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By euanjohn
10th Apr 2013 12:42

Corrections on Sage

What I would do is to make the correction effective the first day of your current accounting period e.g. 1.1.13.  I would debit or credit the profit and loss account brought forward (a/c 3200) and adjust the appropriate balance sheet accounts to agree the balances at the year end.

When you post the journal you will see that account 3200 agrees with the accumulated P and L per the signed accounts.

This is a lot quicker than restoring a backup and then correcting your entries because then you would have to re-post the current year.

Hope that helps!

 

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By hkfinancials
10th Apr 2013 12:46

Possible

Take a back up of the existing data set so that you can return to your current state if something goes wrong with the following steps.

Change the Financial year end back to the year which has just been closed. (settings - Financial Year - Change month to start of the fin year you want to re-open - Click Change)

Reverse the year end journals. They should be easy to identify from the details column which would say "Ledger Year End" and should be dated the last day of the year originally closed. ("Reversals" tab at the top next to "Journals" in the company/nominal module).

You are now back in the previous year with all the other data intact.

Make your changes to the audit journals, close the year and continue.

 

 

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By Metrobrit
10th Apr 2013 12:49

I don't wholly agree with the comments above

If you make the changes in the current year, then the opening TB will be out and it's just a little messy to work with as you always have to bear these journals in mind.

Simply print off the opening TB compare it to the final audited figures and then post your journal on the last day of the last financial year. Sage will beep but allow it, and then your opening TB will be correct.

Of course, only balance sheet journals should be done, any profit and loss items will need to be posted to P/Loss brought forward (3200), and don't post to any control accounts, if you have any opening  debtor, creditor or bank journals, then post them to a suspense account and then make a further adjustment in current financial year to correct them.

I've done a great many of these and in my opinion this is the best way.

 

 

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By NDH
10th Apr 2013 12:53

Agree with Metrobit

I'd go with Metrobit's way of doing it. If your prior year figures are wrong then these need changing in the prior year then the brought forward figures should be correct and match the auditors figures.

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By johngroganjga
11th Apr 2013 13:40

All the ways suggested of putting the entries back into the already closed year are at least ten times more complex and time-consuming than just putting them through today, and the same TB will result which ever way it is done.  So my original suggestion stands.

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