Posting to A/R in a foreign Currency as an adjusting Y/E Entry

Hi I need assistance please:

In the previous fiscal year we generated an invoice for USD (in a foreign currency) $1080.04.  The client paid the amount via a wire transfer and the invoice in Accounts Receivable has the PAID on it.  However, the Accountant said the deposit wasn't posted to the GL.  I didn't think that was even possible!~

He now wants us to do an adjusting entry of:
US Cash Account    1080.04
Accounts Receivable                         1080.04

However, we don't have an Accountants version of Sage so we can't post into a  Linked Account.  I don't want to unlink the accounts because it is a foreign currency and will likely create a data inconsistency.

Could someone advise how best to hand this?  I appreciate you assistance:)  Thanks, Carol

  • Unless you are seeing an imbalance between the A/R ledger and the G/L (under Maintenance, Check Data Integrity), you do NOT want anyone to make that entry.

    I would run an A/R detail aging report for that customer, 999 days of payments as of the last future date that is allowed in your books, and search for that invoice & payment (use control-F for Find).

    It is much more likely that someone posted the payment into the wrong fiscal year (either past or future), than the accounting software forgot to post it to the G/L.
  • Phew Randy!!! Well done. It just seemed improbable that Simply merely "forgot" to add the payment to AR.

    We double checked back through those records and the payment was posted to the wrong year!!. Normally our system doesn't allow that so someone must have made changes and not re-set that function.

    What would you suggest to sort that out? We have closed the fiscal year in April 2015 where the payment should have been posted (but was posted to April 2014 year instead).
    Regards, Carol
  • Hi Carol,
    Since Sage 50 only allows opening the current + 1 year prior, you can't make the adjustment through the Sage 50 interface.

    If it's a major, major problem, it may be possible to have a data repair company correct the data so as to move the transaction to a date in the correct fiscal year.

    You may not need to make the adjustment - the 2015 year trial balance as of year end of April 2015 is correct, only the beginning balance A/R and USD bank are out by the amount of the payment, and will no longer agree to the 2014 year end.

    These are balance sheet accounts (except if there is any foreign exchange gain / loss on the payment). Your accountant is the best source of advice on what to do with it.
  • Actually I haven't rolled the current year over yet Randy. I.e. we are putting in adjustments for April 30th 2015 which is the last date of our fiscal year. Once the adjustments are done, we will roll it over to the new year.

    We have been waiting for the Accountant to finalize... since it is technically still in the current year can I do and adjustment? If so what should it be?

    Regards, Carol
  • If Sage 50 allows, you can temporarily change the date back far enough, to the date that payment was posted, under Setup | Settings | Company | System, or just uncheck [ ] Do not allow transactions dated before: [__________].

    You can them either reverse the payment in the 2014 year, and / or correct the date on the payment with an adjustment, which will reverse it in 2014 and post it in 2015.

    You may want to check with your accountant first, but this is probably what they want to see done.