Deleting Past Due Payments

[jldodge]

I have a dilemma. Late last year, we setup a business in Peachtree Complete Accounting 7.0. There was a lot of catchup (1999 and all of 2000) so that we could prepare our taxes. Prior to this everything was manual.

In my haste to book sales, I did not use the proper steps for recording payments, i.e. I simply made a GL entry into cash or the checking account where we deposited the credit card proceeds.

Now, with Peachtree Complete Accounting 2002, I see all of these past due notices. I can fix this year easily enough. But 1999 is closed out and there is too much volume in 2000 to "redo".

How can I "eliminate the past due amounts for 1999 and 2000 without having the accounting implications (e.g. write-offs). Please give me the steps as I am too new to understand all of the shortcuts.

Thanks in advance ....

[asphelpdeskinc]

To clear all of the A/R from aging reports and have an accurate system, you will have to make a receipt for each customer that shows a balance due but has really paid. It sounds like you have a lot, so I would set up a new G/L account for the "receipts" to go into. For example, a normal receipt goes into your cash account - and the offset (which is behind the scenes) is reducing your accounts receivable balance. For all of the transactions, change the "cash" account to the new one just set up. Make all of the transactions dated 12/31/2000. Once all A/R balances are correct, make one G/J entry to bring your trial balance back into line. (should be to credit the new account you created and debit A/R). Then make your new account inactive. Be sure to change it back to your normal cash account and pull up a real receipt and repost it - Peachtree remembers the last account used!

Other option - create a new company as of 1/1/2001 (or whenever your most recent fiscal year started) and enter correct beginning balances and do it right from there.

Jim Ronson
http://www.asphelpdeskinc.com

[jldodge]

Thanks .... Not what I was hoping but a reasonable approach. Further question. If I follow the process you outlined, wouldn't it take the same amount of time to simply repost the payments correctly? What am I missing ....?

Thanks again ....

[asphelpdeskinc]

The method I outlined should be a lot faster, because you don't need to look up actual dates, check numbers, etc. You just go down the A/R aging report and clean up everything in 1 giant receipt for each customer.

Jim Ronson
http://www.asphelpdeskinc.com