Expenditures recorded under incorrect p/centre

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 On month end, 2 months ago, expenditure  has been posted into incorrect profit centre (accounts already reported as it happened 2 months ago). Can this be corrected now or it's too late? what is the correct action?

Replies (8)

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By David Ex
14th May 2024 19:20

Suspect the answer is correct now and move on. Depends on materiality and what your manager wants to do. Ask them. There’s no right or wrong answer.

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By Paul Crowley
14th May 2024 19:40

Just use a journal using today's date

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By paulhammett
14th May 2024 19:40

Yes, by a journal entry.

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By tom123
15th May 2024 09:19

I would usually correct most things in the current month, and move forwards.

I'm also not adverse to correcting a prior month - and letting stakeholders know.

Particularly relevant if you do reporting comparing the month with the same one in the prior year. If you didn't correct in the month of the error, you would have two "odd" months this year, which you would also need to re-visit when they become the comparator next year.

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By Deez Nuts
15th May 2024 10:36

Joined on the 14th and immediately posted two trivial bookkeeping processing questions.

You should be talking to your supervisor on these matters first rather than random folk on the internet.

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Replying to Deez Nuts:
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By Confusedabit
15th May 2024 11:06

Thanks for making me feel welcome

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Replying to Deez Nuts:
By Ruddles
15th May 2024 11:14

Deez Nuts wrote:

Joined on the 14th and immediately posted two trivial bookkeeping processing questions.

How do you suggest that someone with a question, however trivial to you, asks that question without first joining the site?

I once joined a plumbing forum in order to ask a boiler-related question. It never occurred to me that I should have waited some time after joining the forum before posting the question.

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Melchett
By thestudyman
16th May 2024 15:33

Yes of course it can be corrected. Assuming the expense account is correct:

Debit: correct profit centre - same account
Credit: incorrect profit centre - same account

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