I have a small issue which anyone of you had faced this issue before....
1) I have a vendor for whom i have open ledger entries from Oct-2010 till date
2) For some reason, we wanted to close this vendor balance as on 31-Dec-2010 and insert a new opening balance as on 01-Jan-2011
The vendor ledger entry looks like this
01-Oct-2010 = -15,210
04-Oct-2010 = 1,000
07-Nov-2010 = -25,210
10-Dec-2010 = 2,500
Total for 2010= -36,920
02-Jan-2011 = -32,560
28-Feb-2011 = -15,345
Total for 2011= 47,905
Now i wanted to close his balance as on 31-Dec-2010 by putting a reverse entry to his balance. So i pass a journal with the positive value of 36,920. The Application method for this vendor is "Apply to oldest". I am passing this entry on 31-dec-2010. So i would assume that while passing this JV, the system will automatically knock off vendor's 2010 invoices so that i can pass a fresh entry on 01-Jan-2011.
Actually what is happening is that, the system is keeping some balance for a specific invoice of 2010 and adjusting that balance to one of the invoices in 2011. In this example, it is not adjusting the 07-Nov-2010 invoice fully and keeps a small balance of it and that balance is adjusted to an invoice dated: 02-Jan-2011.
I woul like to know why the system is applying in this method or is there any specific way of overcoming it?
