The year end journal has a line for 'accounts receivable'.
When I select this I get a message that says 'transactions to accounts receivable must include a customer'. Therefore I can not process this line, how can you include a customer?
yes it can, when you select accounts receivable you enter the customer name over in the right hand column
Or ask accountant if he just wants you to use a Trade Debtors account instead
That’s correct - Accounts Receivable relates to customer invoices so the program needs to know which Customer.
Accountants often don’t understand how the bookkeeping side works 🙄 (Generally, you wouldn’t be journalling to A/R unless it’s customer-specific!)
When this happens to me I use an account Sundry Debtors, that way it doesn’t need a customer, or ask the accountant who the customer is
Posting generically to A/R will mean your A/R account is out of balance with your A/R reports. Best to ask the accountant why they are adjusting it & then posting against the specific Customer 😬
Hi Shaz, if I find out who the customer is it still cant be posted in the GJ
Oh wow…always learning. Great :-)
Hi Chris_7677427, I was looking at the P&L for the past year and this silly adjustment of .02 that was to be applied to AR in the y/end journal I did as suggested and put it against Cash Sale.
On the AR a/c it shows the journal entry but not .02 it has a figure of -$127k & this figure is showing in the P&L and my net income is all wrong…
Such a headache. I tried setting up a sundry debtor a/c and put the .02 to it which is showing in P&L but the big minus figure is still there under 'other income'.
Not sure if you can help, it's ridiculous over .02c…arhh
I am actually asking my accountant too as they had a big amount in the journal against 'other income'…
Random journals shouldn’t be posted to A/R. The reason it requires a Customer allocation is for exactly this reason, to ensure the integrity of the reporting.
Similarly, journals shouldn’t be posted to reconciled or header accounts (or for any payroll or GST-related adjustments, as the system relies solely on tax codes & payroll, to balance!)
Unfortunately, accountants LOVE journals & do not understand the flow-on affect of the above 🙄🤦🏻♀️😫🤨
Hi, further to the y/e journal still not resolved.
Re the 'other income' I mentioned, its now been coded to Shareholders salary which has put my P&L out of balance. Nothing has really been coded to that in the past so not sure where to put it…
so is Shareholders salary an income account in your chart of accounts?
Look at the accountants Profit & Loss and copy where he has it
No shareholders salary is an expense & that is where the accountant has coded it to. They use Xero.
This is a classic example of my previous post - It can’t just be journaled there, it needs to be entered via a Paycheque & reported through STP 😳
I do agree with Shaz but if these are journals from previous financial year maybe the STP has been done in Zero. More communication needed with accountant I think
The reason for the journals at year end is so that our system matches with theirs.
The shareholders salaries is not something that has been used in the past.
@Chris_7677427 Yes, but that’s my point - Any salaries must be reported via payroll. They can’t just be journaled at year end … due to reporting & (PAYG/Super) liability obligations 😬
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