User Support Forum

Recently discovered that a pmt for disability insurance was recorded not as an expense bit as a liability under disability withheld. This was in a prior year and previous bookkeeping did not run a Year End Balance sheet. When I did for this year, the amount shows up as a liability. How can I correct this. Again, it is a 2013 error and the year has already been closed. Thanks for help available.

money wrote:Recently discovered that a pmt for disability insurance was recorded not as an expense bit as a liability under disability withheld. This was in a prior year and previous bookkeeping did not run a Year End Balance sheet. When I did for this year, the amount shows up as a liability. How can I correct this. Again, it is a 2013 error and the year has already been closed. Thanks for help available.

FWIW ... if you're running v 10 or higher, you don't need to close years, as you can keep up to 15 months open at any one time. So you can have January 2015 as well as November 2013 open so you can make these types of corrections.

My suggestions is this:

1. Do a reversal of the original transaction by entering it as a Jan 2014 transaction (or an end of year 2014 transactions with PLENTY of explaination).
2. Then reenter the transaction using the original information (check #, memo, reference, etc) but with the correct accounts.