Liability Account for Tracking Payables - Can we use for Year End journal entries?

Question

We had few outstanding Invoices to paid as of 30th June which were paid subsequently. We wanted to account these expenses for FY2019-20 and hence attempted to show them as Accounts Payable - Sundry Creditors. To effect this, when attempted to record the Journal entries, there was a warning message stating that this account is a Linked Account and do you still want to use?

Not sure, if it will create any other issues if continued to record the journal entries.

Any previous experience or resolution to this issue will be appreciated. Thanks.

Mike_James · Accepted Answer

Hi @alagmuthu , conventional accounting practice suggests that you do NOT use a control account for other purposes. Create a separate account for sundry or other accruals. The payables reconciliation report is designed to prove whether your payables balances to the control account, and if other transactions are included, then it will never balance, which may mislead.