Total Legal Accounting 3
SECTION 6.5.4 - PRIOR YEAR JOURNALS
USAGE: To enter transactions after the end-of-year has been run.
DISCUSSION: T.L.A.’s calendar spans 27 periods. This allows for 12 months of last-year, 12 months of this-year and 3 months into next-year. Assuming that your financial year ends on 30th June, some time after 1st July you will need to run an end-of-year. This will move all the balances and remove old transactions. It will also close-off your ability to post to the year just ended. Normally you would hold off running EOY for a few weeks, to allow for any late invoicing, purchases and bank statements. Also, you may not receive all your depreciation information, etc. from your accountant for several weeks after the end of the financial year. To accommodate this, T.L.A. allows you the 3 months into next year before forcing an EOY.
Most companies can have their accounts up to date by the end of September allowing a normal EOY. Occasionally, new information is presented. Some companies are part of a large structure that will not be finalised for several months into the next-year. Some external accountants are slow in providing information.
As you are forced to run an EOY by the end of September, T.L.A. includes a facility to post backwards into last-year. This should be used sparingly because it affects any reports you may have already printed, especially Profit/Loss and Balance Sheet reports. Any reports already printed become redundant.
This facility only allows entry into the General Ledger. Client and Creditor information is not affected.
When you enter the program, you are presented with the following screen:
The fields to enter are:
DATE This is the transaction date. Normally this will be 30 June of last-year. You can force that date by pressing <F1>.
CREDIT ACCOUNT This General Ledger account is credited from, i.e. the transaction value will be subtracted from this account. If you cannot remember the account number, press <F9> to initiate a search.
DEBIT ACCOUNT This General Ledger account is debited to, i.e. the transaction value will be added to this account. If you cannot remember the account number, press <F9> to initiate a search.
VALUE This is the transaction value. It is always a positive number. The transaction sign’s are dictated above.
DETAILS You must enter something here. This field describes the nature and reason for the journal.
To update the journal, press <F10> or <Enter> after the last field.
T.L.A. will update the two accounts and, if necessary, find the Last-year’s profit transaction and rewrite it with the correct figure. Last-year’s profit is only affected if you journal from a Profit/Loss account to a Balance Sheet account.