Help with P&L

Question

Hi all,&nbsp;Last month I accidentally recorded a sale to a client using an expense account (5-1000 materials) instead of posting it to an income account (4-1000).&nbsp; Because of this, the sale didn't appear in our total sales figures for May.What I did to fix it was opened the invoice (which had been paid by our client), and I edited the account code from 5-1000 to 4-1000 and clicked OK.&nbsp; This fixed the income total but the expenses jumped up by this amount?Before I contact our accountant, is there a way that I can correct this either by a journal or other transaction?&nbsp;Thank you in advance.D

princess_r · Answer

Hi Dorothy_6770,&nbsp;It’s totally understandable to get things mixed up sometimes—no worries, I’m here to help! When there’s a mix-up in accounts or you need to fix a transaction, it’s usually better to reverse the original entry and re-enter it instead of editing it directly. Making direct changes can throw off your account balances and make things a bit messy.&nbsp;You can tidy things up with a journal entry, but it’s always a smart move to check in with your accountant first to make sure the adjustments are spot-on and to avoid any balance issues down the road.&nbsp;Cheers,Princess

dorothy_6770 · Answer

Hi,&nbsp;Thank you.&nbsp; Should I replicate my original sale, then reverse it or process a journal?&nbsp;

doreen_p · Answer

Hey Dorothy_6770,
&nbsp;
There's no need to replicate the original sale, as that would create a duplicate. Instead, you can create a journal entry to sort it out. That said, it's always a good idea to have a quick chat with your accountant to make sure everything's spot on.&nbsp;
&nbsp;
Cheers,
Doreen

h-ts · Answer

Hi Dorothy, not an accountant, so I can't give advice, but I think what you've done is probably all you need to do. The expenses will have increased by that amount because they're no longer being reduced by the incorrect entry.
The journal would be an option INSTEAD of changing the invoice, not in addition to. One other thing to be aware of is whether the change was made after a BAS or any other reporting had been finalised.

duncans · Answer

Dorothy_6770​ Doreen_P​ Princess_R​&nbsp;&nbsp;When Sales increase, it is expected that Expenses increase.&nbsp; The Profit should be the same (before and after).&nbsp;Duncan

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Help with P&L

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