How to Make an Adjusting Journal Entry for Accounts Payable in a Closed Accounting Period

Overview:

When an accounting period is closed, it signifies that all transactions within that time frame have been reviewed, reconciled, and finalized and, the books have been locked using the “Closing Books” tool in the BE Configuration Panel. However, there may still be situations where adjustments to Accounts Payable related to that period are necessary. This article explains how to properly handle A/P adjustments when the prior period is locked.

Common Scenarios Requiring A/P Adjustments

• A vendor Bill was posted incorrectly (wrong amount, wrong vendor, wrong GL account).
• A Bill was backdated into a closed period and needs correction.
• An accrual was made in the closed period but the actual invoice was different.
• A duplicate Bill was entered and needs to be reversed.

Quick Reference:

Link to Full Step-by-Step Guide