Adjust accounts based on the previous year

The Previous Year Journal Entry allows you to post a batch of nominal postings for accounts with respect to the previous year, including reference and narrative details. After the Year End routine has been completed, you can use this routine to adjust the previous year's figures as well as the opening and closing balances on nominal accounts. It allows you to close the Nominal Ledger at the Year End, but make postings that affect the previous year's balances.

This routine is only available if you have activated Post Entries for Previous Year in the Nominal LedgerSettings and specified the previous year end's date during the ledger set up process.

You are unable to post previous year journals dated earlier than the start date of the earliest period that already exists in your previous year data.

For both Profit and Loss and Balance Sheet accounts, if the nominal code is not retained profit (i.e. not the default Accumulated Profit in the Nominal Ledger), the journal entry:

• Creates a nominal entry for the previous year period. This is linked to the relevant previous year period, according to the date of the transaction.
• Makes a posting to the adjustments amount posted after the previous year end balance.
• Adjusts the closing balance amount that was posted for the previous year.
• Makes a change to the previous adjustment posting that was made to the Year End closing balance amount.

If the nominal code is a Balance Sheet account:

• An adjustment is made to the credit year-to-date or debit year-to-date value for the nominal code's account.
• If consolidation is enabled in your Sage 200 system, an adjustment is made to the consolidated amount balance for the nominal code's account.
• If the nominal code is the retained profit item, a further adjustment is made to the summary forward balance value for the nominal account.

If the nominal code is a Profit and Loss account:

• An adjustment is made to the balance summary for the nominal code's account.

Note: This routine operates in a similar way to the Journal Entry routine described in this section. However, you cannot put a previous year's journal entry on hold, set it to recur or reverse, or add any taxable entries to the journal.

• For Balance Sheet items, the closing balance at the end of last year and the opening balance in the new year are adjusted.
• For Profit and Loss accounts, the closing balance and the last period's actuals are adjusted. The balance to date for the accumulated profit account is updated rather than the individual Profit and Loss account itself.

Note: To report on adjusted figures, use the Profit and Loss and Balance Sheet and add the last year's closing balance column to the financial statement layout.

You must have:

• Activated the post entries for the previous year's setting during the Nominal Ledger setup process.
• Created the accumulated profit nominal account.