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

Highlighted
4 Posts
User

4Posts

2Kudos

0Solutions

Solved: Go to Solution

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

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.

2 REPLIES 2
Highlighted
Ultimate Partner
4,648 Posts
Ultimate Partner
New Zealand
Ultimate Partner

4,648Posts

2,091Kudos

595Solutions

Accepted Solution Solved

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

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.


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

Highlighted
4 Posts
User

4Posts

2Kudos

0Solutions

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

@Mike_James - Thanks for the swiftly response. Yes, your suggestion looks safe and logical. Will do that accordingly.

Didn't find your answer here?

Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post