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• # 83769
• Fri 06 Jul 2012 12:16 PM

Hello everyone,

I've just started working with my first client and have little experience, so was wondering if anyone can shed some light on Sage accounts. I have been updating bank account and supplier accounts yesterday and noticed a few old entries in the accounts' activity list. Some date back to 2008, which I am assuming is not right. 

Am I right to think that if bank transaction was not reconciled it will appear forever on Sage until it is marked as reconciled. But supplier invoice from a couple of years ago must have been paid, so why would it still appear in the current year? How do I clear them off?

Can anyone share their experience on this topic? 

Many thanks,
Rasa 

• RD

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• # 83772
• Fri 06 Jul 2012 04:34 PM

Hi Rasa,

Supplier invoice I would write off but make sure an explanation is entered so accountants at year-end can relate to it.

Ref the bank I would do a journal entry to get rid of this and post it to a miscellaneous account again with an explanation.
Then when reconciling bank just make sure these entries are reconciled to get rid of them from bank.
That is the way I would handle it (and have done in the past) but others may do it differently.
I am surprised their accountants have not queried this previously - that is if they use one!
Regards,
Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 83773
• Fri 06 Jul 2012 06:38 PM

Hi Rasa,


You will find this a lot. I have been a bookkeeper for just under 5 years, and have yet to inherit a "clean" set of books, I'm beginning to think it's just a pipe dream...

Anyway, as with the supplier invoices, I agree with Marilyn, I would write them off as at todays date (otherwise it will change opening balances), with an explanation.

With bank transactions, yes they will keep appearing when you are reconciling the bank until they are reconciled. If the transaction is in the current year then I would just delete the transaction if you cannot find out why it has been entered, otherwise, if it is in a previous year, I would do as Marilyn suggested and do a journal entry, dated in the current year, to the P/L, with an explanation.
        

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• # 83774
• Fri 06 Jul 2012 06:57 PM

Hi Rasa,

For current year transaction, I would check with supplier to make sure they are not outstanding from their end.
All it takes is a phone call.

If they have been paid then those transaction need to be reconciled.
As to previous accounting period, yes a write off is applicable.

All the best,

xxx

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• # 83776
• Fri 06 Jul 2012 08:38 PM

Thank you all for your replies. It is a bit of a mind field to get started but I think I will clear off old stuff kicking about from previous years. Good point about the accountants raising the question. I will talk to them about it first I think.

Thanks again,
Rasa 

• RD

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• # 84057
• Tue 17 Jul 2012 09:30 PM

You need to check with the accountant to see if any adjustments they have made when doing the final accounts have subsequently been put through the clients records to agree the balance sheet. It's possible they haven't done this and if you do it then your queries may disappear. 

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