Question

Year End Adjustments

3 replies
47 views

We’re in the middle of our yearly audits and our accountant has asked me to create adjusting journal entries. I have paid a vendor in the current year but the accountant is asking me to create an adjusting entry , Credit AP, Debit expense, in the recently closed FY. This has already been paid and I already issued a check in the current FY. Problem is when I created the AJE, it’s showing I need to print a check for the amount of the expense. There is no credit showing to apply on the bill. How do i do this exactly. Need help please. Thank you.

QuickBooks Desktop

R

Rasa-LilaM

QuickBooks Team

Hello there, peegee.

I understand the value of maintaining accurate financial records. This ensures an easy reconciliation process and timely filing of taxes and forms at the end of the year.

We'll have to determine the reason why you still have to make an adjusting entry (the vendor is already paid). That said, I recommend contacting your accountant again.

Then, go over the details of what happened with the transaction, particularly the result of the adjustment. They can advise you on how to deal with the situation appropriately while keeping your books in order.

Allow me to share this resource that will walk you through the process of managing your journal entries: Create a journal entry in QuickBooks Desktop for Windows or Mac. It includes instructions on how to edit, reverse, or delete the transaction.

We also gathered resources to aid users in efficiently completing their tasks in QuickBooks Desktop (QBDT): Self-help articles. From there, you'll find answers and articles related to payroll, taxes, cash flow management, inventory, and other accounting processes.

Keep me posted if you have other QuickBooks concerns or additional questions about adjusting entries. I'll get back to answer them for you. Have a great weekend and stay safe.

P

peegeeAuthor

Hello, we needed to make an adjustment because the expense should have been made in the recently closed FY.

Rainflurry

Level 11

@peegee

If your accountant is asking you to create an adjusting entry to debit an expense and credit A/P, that must mean you have a credit (negative A/P balance) with that vendor, yes? Creating a bill in QB will create that adjusting entry (debit expense, credit A/P). So, create a bill with the appropriate expense account and then apply the credit to the bill.

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