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ReportClient had an account originally set up as Balance Sheet - in FY 2019 they had transactions, year closed - error not noted ( not sure how it was missed ), no activity in FY2020 - year closed and no notice of error - no activity in FY2021 ( Feb 1, 2020 to Jan 31, 2021) - year closed - and Retained earnings is noted to be out of balance - by the amount in the account.
Seems that somewhere along the way someone corrected the account and it now appears as P/L ( correct ) but it still has an opening balance.
So I believe the change to the P/L was done after the last year close.
To fix
(1) reset account back to Balance Sheet
(2) restore from Year End Close - GL magic button
(3) change the status of the account to P/L
(4) close the year - again
I am pretty sure that this is correct - my question has to do with all the changes, JE and such that the client has done since they closed the Year - they would have done correcting transactions into the closed year - they have done a ton of work since end of February - What will happen to all that work if we reopen the year - make our correction and the close the year?
Second question - what does this look like when you look into the detail transactions for the GL - the concern is that the external auditors may have a fit if there are whole sale changes and a ton of reversing and re-reversing transactions. Or is this not the case?
Thanks in advance for your assistance.
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