Adjusting Beginning Balances after a Year End Close

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Posted on by Eric Lowry

I just did our year-end close and noticed, after the fact, that an expense account was set up as an asset so now it's carrying a beginning balance. How do I correct this?

Thank You

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Victoria Yudin 22,766 on at

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Re: Adjusting Beginning Balances after a Year End Close

Eric, there is a KB article with detailed steps: https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?scid=kb;en-us;864913
Community Member Microsoft Employee on at

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Re: Adjusting Beginning Balances after a Year End Close

This mismatch is easy to make and can create serious problems. We have taken two steps to prevent an expense account from being tagged as a balance sheet item. We added a trigger to the GL00100 table that tests the new account number to make sure the posting type matches for the range of numbers the new account is in. Also we run a process before year end close that looks at all the accounts in the GL00100 table in each company to verify the posting type matches the appropriate range of account numbers.
Richard Whaley 25,195 on at

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Re: Adjusting Beginning Balances after a Year End Close

At this point, a journal entry offset to Retained Earnings is probably the easiest. Then fix the account.