Client's year end 31/07 and they have closed year to 31/07/17 on Sage
The book-keeper paid Corp Tax of £16000 + in April 2018 and mistakenly posted it to Sage as being 20/07/17, Sage accepted the entry with the wrong date and has posted it to the 2017 year
To be clear
Credit bank April 2018
Debit Corp Tax 20/07/17
The software allowed this to happen even though the 2017 year was closed.
Am I missing something obvious or should I retire
Replies (6)
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There would have been an "are you sure?" warning message but it does allow you to enter into the previous years. It has to as often there are accounting entries after the year end has been closed. Unlike the online solutions the year end is a function rather than a live balance which is then locked. Whilst P&L and BS reports might look odd often the TB will pick up these old dated items OK for posting into accounts software
Agreed. There is nothing wrong in principle with this - the CT payment may have genuinely been forgotten in the last year. If the entry had been something that would affect profit you would certainly get a warning and the amendment to the profit would show as a "prior year adjustment". In these cases you can run a P & L for the period "brought forward" to "brought forward" and highlight it. Contrary to the 99% of Aweb users that denigrate Sage I do like the facility of closing off year ends - at least when the client posts a prior year item 10 minutes after I've departed with the year's schedules I can easily see what they've done.
About 60 - 70% of the Sage backups I get from clients have entries stuck in to the prior year, after they gave me their backups last year. The first thing I do when preparing accounts from Sage is run a brought forward TB and journal in the changes made to last year, it happens all the time.
You can input any date. It takes a special kind of bookkeeper to ignore the warnings and plough on regardless. Wasn't T. May was it?