AP and AR Corrections Handout

Transcription

1 AP and AR Corrections Handout 11.0 Reversal and Correction Entries 11.1 Overview The standard method to reverse and correct posted entries is to use Reverse Posted Document. This ensures that the audit trail is maintained within each module and subledger. In some cases, Reverse Posted Session may be used. The steps to Reverse Only, and to Reverse and Correct posted data are as follows: 1. Identify the entry area, session ID and document ID of the error 2. Create a new session ID and on a blank Document, select Reverse Posted Document 3. Use the Wizard to create the reversing entries 4. If this is a Reverse Only process, Post 5. If this is a Reverse and Correct process, add the correcting transaction lines and adjust the document amount 6. As an alternative to Step 5, you could post the reversal as is and then create another new session and use the wizard to create a copy of the posted document. The transaction lines would then be corrected. 7. Post 1

2 11.1 Reverse Only An AP Invoice example Identify the entry area, session ID, and document ID of the error We have posted an entry under the vendor Rapid which will not be paid. The services were incorrectly billed to us. The entry will need to be reversed. Use the Vendor Balance lookup under >Activities >Display Balances >Vendor Balances. (see 5.7 Online Vendor Inquiry) and identify the history of this entry. The entry area is AP Invoices (API), the session ID is AP and the document ID is RD96210a. 2

3 Create a new session ID and on a blank Document, select Reverse Posted Document Use the Wizard to create the reversing entries Click OK 3

4 MIP warns of the adjustment. Click OK 4

5 The reversal entry (notice the negative document amount and debits to the AP account) is displayed. Click Save Post the Session, like any AP Invoice (see Post the Vendor Invoices). 5

6 11.2 Reverse and Correction An AP Invoice example Identify the entry area, session ID, and document ID of the error We have posted an entry under the vendor Rapid which has transaction line errors. The services were incorrectly charged to Program 401 Dept 201 and should be charged to Program 301 Dept 201. The lines will need to be reversed and corrected. Use the Vendor Balance lookup under >Activities >Display Balances >Vendor Balances. (see 5.7 Online Vendor Inquiry) and identify the history of this entry. The entry area is AP Invoices (API), the session ID is AP and the document ID is RD96210a. 6

7 Create a new session ID and on a blank Document, select Reverse Posted Document Use the Wizard to create the reversing entries Click OK 7

8 MIP warns of the adjustment. Click OK 8

9 The reverse entry (notice the negative document amount and debits to the AP account) is displayed. 9

10 Add the correcting lines and adjust the document amount Delete lines that don t need correcting by selecting the row(s) and hit <Del> on your keyboard. Add the correcting lines, debiting the proper code combination. This is a subledger entry, so the AP GL Account must be used to pass validation rules. However MIP will accept a $0.00 entry in this GL account. Reset the document amount to $0.00 as there is no change in the AP subledger balance. 10

11 The reverse and correction entry (notice the $0 document amount and $0 line amount to the AP account) is displayed. Click Save Post the Session, like any AP Invoice (see Post the Vendor Invoices). 11

12 11.3 Reverse and Correction An AR Receipt example Identify the entry area, session ID, and document ID of the error We have posted an entry under the customer ABC Health where the deposit check has been returned NSF. The deposit was part of a number of checks and will need to be reversed at the document level. Use the Customer Balance lookup under >Activities >Display Balances >Customer Balances. (see 6.4 Online Customer Inquiry) and identify the history of this entry. The entry area is AR Receipts (ARC), the session ID is ARC and the document ID is I could look this up by Receipt number and see all the linked billings. 12

13 Select Activities>Manage Sessions>Reverse Posted Session Enter the session to be reversed and create a new session ID to hold this data. The description should be updated with the specific information. Click Save. Click Close. Select Transactions>Enter AR Receipts. 13

14 Open the new AR Receipts session. 14

15 Do not reverse the receipts that cleared the bank. There are 5 receipt documents in this session. We don t need to reverse the receipts that are ok. **Therefore, delete the receipts that we are not reversing, by selecting each receipt and choosing the lower delete button.** A large number of receipts can be deleted at one time by using the Find button. 15

16 Verify that the only document left in the session is the NSF document. Click Close. Post the Session, like any AR Receipt (see Post the AR Receipts). 16