Support Desk Chronicles: Correcting a Scheduled Payment Posting Account After Year End

Posted By
BDO

Client Issue Overview

Our client contracted us after they ran their year-end close. Essentially, an AP Payments Schedule, in Dynamics GP, had been set up with the wrong AP offset account selected. The schedule began in November and they caught the error in April (of the following year). The client wanted to correct the monthly entries that were posted through on a going forward basis. Here is how we helped.

Client Questions

Our client initially asked three main questions on making the necessary corrections:

  1. It doesn’t appear that we can make changes to a set payment schedule, in particular the AP offset account. Can we make changes?
  2. If we can’t change the AP offset account selected, can we delete the existing schedule without affecting the posted transactions associated with the AP Schedule?
  3. Is there a way to create a second schedule that would post monthly to “non-AP” related accounts?

BDO IT Solutions Responses

To help resolve the issue, we answered each of the questions:

  1. Once the payment schedule has been posted, you cannot change the posting offset account.
  2. You cannot delete the remaining schedule payments, but you can post and void them. The previous posted batches are not impacted by voiding all of the remaining future schedule payments.
  3. If you are willing to let the incorrect schedule post through, you could post the remainder of the schedule payments. This would show activity in the right account for reporting purposes. Next you could create a recurring batch in the financial module to correct the posting accounts.

The Solution

To correct the account:

  1. Create a journal entry in the financial module to move the balance of the remaining offset account from the wrong posting account to the correct posting account.

Debit incorrect posting acct

Credit correct posting acct

 

  1. Continue the schedule as originally set. The journal entry for when this happens is:

Debit incorrect posting acct

Credit account payable

 

  1. In the financial module, create a recurring batch to be posted every time the schedule payment is posted. This would be the correcting entry.

Debit: correct posting acct

Credit incorrect posting acct

 

The Results

The correct offset account will have the correct remaining balance. You can also set a reminder task or a SmartList list to cue an alert when the wrong posting account has a balance, to remind the finance team to post the recurring batch when a schedule payment is posted. This option would mean a journal entry would debit the correct offset account and credit the incorrect one when the schedule is posted.

For more information, visit our website or contact us.


BDO eBook - The Cloud Changes the Game

There are times in the course of your business when you have the opportunity to dramatically accelerate growth and improve day-to-day efficiencies. Recognizing

Download