Prior Year Adjustments

Overview

The Prior Year Adjustment menu allows you to create an adjusting journal entry for the prior fiscal year.

Steps

1. From the Accounting module, select Period > Prior Year Adjustment. A search screen of previous year adjustments is displayed.
   
   
   
   
   
   
2. Click New button from the menu of the search screen. The Prior Year Adjustment form will display.
   
   
   
   
   
   
3. The Journal Date field shows the date of the last fiscal year.
   
   
4. Optional: You may apply a journal template by selecting it from the Journal Template field.
   
   
5. The Reference 1 field may denote the related records that the journal is based on. The Reference 2 field may denote the entity that initiated the journal.
   
   
6. The Journal Type of the journal entry. The prior year adjustment is given the type, "General Journal".
   
   
7. The Fiscal Year field shows the fiscal year of the journal to be processed. By default, this is set to the last fiscal year.
   
   
8. The Fiscal Period field shows the accounting period where the prior year adjustment will be posted.
   
   
9. Set the account codes to be included in the journal in the Items section. Select the account codes from theAccount Code column pulldown.
   
   
10. Enter a Description for the transaction.
    
    
11. Enter the values in the Credit and Debit columns.
    
    
12. Optional: You may select a Tax Type for applicable account codes and select the appropriate Tax Code.
    
    
13. You can view the current and new brought forward balance of the accounts on the Prior Year Adjustment Detail section at the bottom.
    
    
14. Save the details before closing the form. A prior year adjusting entry is created.