AP/ Vendor Ledgers problem

[cdsinc]

I'm using Complete 7.03 and working on a reconstruction encompassing '99-'02. I've closed out '99 and found that an PJ entry did not post to the AP G/L acct. So now I can't get Vendor Ledgers and AP to reconcile and incorrect balances have forwarded to open years. Any suggestions on how to clean up this mess?

[dringstrom]

I think you'll have to create a journal entry on the first day of the new year that is currently open. You didn't say if the incorrect posting was to an income statement or balance sheet account. If it's an income statement account, you'll have to debit retained earnings and credit A/P. If it's a balance sheet account, debit the balance sheet account, then credit A/P. I may have my debits/credits crossed, because I'm typing this on the fly, but I think you get the idea here.

If you really, really wanted to fix it in the year that it happened, you can import a journal entry into a previous fiscal year. Make sure you back up before you do such a thing, though.

Hope this helps!

[cdsinc]

Since I posted my request for help, I have found 4 more PJ entries that did not post to the G/L AP account. The entries show in the vendor ledgers and the Purchase Journal, but not in the AP account in the G/L, and I can't access them. When I double click on the entry, nothing happens. Somehow, they're locked up. Any suggestions?

Thanks for the tip re the entries to fix the problem with the year that's been closed. I'll resort to that if need be, but I am looking for a fix that deals with Peachtree's system as opposed to an accounting fix. The bigger question here is, "Is there a way to get Peachtree to go back into a year that's been closed and repair an error that it made?"

Thanks again for the input.

[dringstrom]

As far as I know, your only recourse at this point is to export the transactions out of the closed year and import them into a new, blank Peachtree company. If you start a new company, you can set the fiscal year to start at 1/1/99, or whatever date that you need, then work through the process and correct the misposted entries. Otherwise, unless you have a back-up that you made before you closed the year, your only other option is to import into a closed fiscal year.

[Deborah Bean]

You have two different problems and you need to sort out whether it is more important to drain the swamp or get rid of the alligators.

If the data in the old company records is important, then open the old company. If you do not know how to keep old companies open in other files, contact me directly because I have a method that takes 1 minute to implement so you never have to restore previous years and you can look at them at any time.

Anyways, go to the old company and make the changes and post the transactions. This should make the needed changes to the G/L. Print the Trial Balance for the last day of the closed year. Open the new company files and go into Beginning Balances. Make the changes there... of course all income and expense accounts will roll up into Retained Earnings, but you have the idea. That will solve the G/L balances.

The problem with the PJ entries not posting to the A/P account, but showing up in the Vendor Ledger, can be caused if the A/P Account field on the Purchases form is set to an account different from the A/P account.

If the entries are in a previous year, they cannot be accessed from the Vendor Ledger or the PJ in the current year. To get rid of them in the current year once they post to G/L accounts, create a credit memo in the Customer Beginning Balances and then apply the two in Payments as a write-off.

If there is a problem with posting current year transactions, go to Period 1 and UNPOST all transactions using Task, System, Unpost on the menu bar. When done, then post again. If you are using Real-time posting method, you can still unpost by going to the Maintain menu and selecting Company Information. Then change to Batch posting method. Return to Real-time when done.

[cdsinc]

David & Deborah,
Thanks for your replies. I figured out what the problem is; it is
Beginning Balances. I had posted beginning balances for the vendors that wouldn't reconcile with my A/P acct in the G/L. So I simply removed the beginning balances and did regular entries in the PJ. And then when I read up on Beginning Balances in Peachtree Help, I read the following: "These beginning balance amounts are not transferred to your A/P account in the General Ledger."

Although this is what caused the problem, beginning balances not posting to A/P in the G/L seems counter-intuitive to me. Why does Peachtree do it this way?

Thanks for your responses, and by the way Deborah, I may give you a call as I would like to learn how to get a copy of your book.

Thanks again

[dringstrom]

The purpose of beginning balances is to record activity that was previously recorded on your general ledger. For instance, when you create a new company, you enter the trial balance that records the activity from the previous accounting software. The beginning balances functionality for A/P allows you to populate your AP aging schedule with the outstanding invoices reflected in the AP account on your trial balance.

[Deborah Bean]

Peachtree does not post beginning balances fro customers to the G/L because that would require debiting and crediting the G/L with the amounts of the invoices. These invoices are assumed to be part of the A/P G/L account balance and the Retained earnings already. Inputting them in the beginning balances just gives you something to pay.

When converting an existing company to Peachtree, you should have the A/P account of your new trial balance equal the total of all existing bills. That is why the beginning balance bills are not posted.

All this is explained in my book which will be coming next month. You can get a copy from www.wordware.com the publisher. It will also be available at Barnes and Noble, Micro Center, and other established computer book stores.