Hi,
I generated the Receivables Reconciliation [Summary] and it shows an out of balance against the Trial balance amount of Trade Debtors account.
I was able to identify what specific transaction caused the error, and it is an irreversible transaction (order converted to invoice).
Hope you can help me on how to proceed on this.
Thank you.
Hi kimpossible , if you generate the report for a date in the future, eg 31/12/2023, does the out of balance still appear?
Converting an order to an invoice would cause the invoice total to appear in receivables, and if a deposit had been paid, that amount would be automatically transferred to the credit of the receivables account. Is this the transaction you are referring to?
Customer deposits on orders go to the specified linked account. If that account was changed between receiving the deposit and converting the order, then there may be an offsetting amount in the linked account.
Hi Mike_James ,
Yes, it is related to that.
My staff accidentally encoded 31/08/2222 upon convert to invoice phase.
To clear out the floating amount in the deposit and trade debtors, we did the following:
1. Create a credit note [negative sales invoice] using client deposit instead of income account - dated 31/08/2022
2. Create a normal invoice using client deposit instead if income account - dated 31/08/2222
3. Apply to sale was dated 31/08/2222.
Receivables recon is balanced only if I date it 31/08/2222;
Statement of Account reflects the correct balance of the client as of current date.
Hope you can help me on this.
Thank you.
Hi kimpossible , the entries you have put through leave a credit entry in Debtors in August 2022, a debit entry in Debtors in 2222, and the income reported only in August 2222.
To correct this, try entering 2 general journals:
In Aug 2022: DR Receivables, CR Income (& Taxes if any)
In Aug 2222: DR Income/Taxes (& Taxes if any), CR Receivables
That should remove the out of balances on debtors and report the income correctly in 2022. Let me know the result.
