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I wanted to run this by you smart people in the forum. I brought a company live on GP 10 from Quickbooks on Jan 1st of this year. We brought over a couple years of summary GL ending balances. We also brought over summary A/R invoices, A/P vouchers, and had to enter outstanding checks as Bank Transactions. Everything balanced up and they went live.
One of the checks that had not cleared the back was from Mid 2008 for $420.00. There were a few that were pretty old and might not clear for one reason or another. Well apparently some collection agency called and said they wanted payment for this bill that the $420 check paid; obviously the company it was written to never got it, never called and just sent it to collections. So the bookkeeper simply entered another voucher for the Vendor and cut them another check.
Now I need to figure out how to fix it and for some reason (long day) it is confusing me.
The way I figure, the expense was taken last year, the cash account was credited and that bill was paid. Now they just doubled up the expense and cash payment. If I void the Bank Transaction for that check (which I never had post to the GL in the first place - already accounted for in GL balances), it's going to try to post to last year and hit A/P and cash. I guess I don't have to let it post to the GL. So maybe I void it and let it go through to the GL and then enter an A/P voucher as an open voucher and carry it over to this year. And then enter a credit memo against it this year. To offset the amount that just got entered as a voucher and paid. What is this going to do to my checkbook balance vs. GL balance? Just typing this is getting me more confused!!
Has anyone had to do this before and am I making this harder than I should be?
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Sounds good!! Even better than my idea.
Good luck,
I offered this as a solution, lets see if it makes sense.
1. Void the "Check" in Bank Transactions. Debit Cash / Credit AP as of 2/2008. This would make it as if the check was never written and that A/P balance would be greater all the way until we cut over to GP on Jan 1, 2009.
2. This would trigger the BBF entry and would change by 12/31/2008 Balance Sheet accounts. At this point the Historical Aged Trial Balance would not reconcile with the A/P account by $420.00.
3. Enter that voucher as of 2/28/2008 and not let it post to the G/L. This would represet an open A/P voucher that was essentially Open since 2/28/2008 and would be in the Over 120 Days category by 12/31/2008. The original expense was incured in the right period (whenever that was, maybe Jan 08). So I don't need to worry about that.
4. Enter a credit memo in this current period to offset that voucher that is now sitting open and at the same time crediting the expense account that they just used to pay that bill off with a new voucher in 2009. Apply that credit memo to the open voucher from 2/28/2008.
Does this sound reasonable?
If I understand the issue, it seems you have a check and the equivalent of a voucher (a GL transaction) in 2008 and now another voucher and a check in 2009. So the issue is getting the checkbook correct and getting your accounts correct.
I would void the original check (which is what the bookkeeper should have done to start with) and change the distribution to debit and credit the Cash account so there is no affect on the account balance. I assume there was no voucher entered for this particular transaction in 2008. If that's the case, then I would just post a journal entry in 2009 to offset the entry created from the voucher the bookkeeper just posted. These steps should correct your checkbook and account distributions, I think.
Hope this helps,
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