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Updated closed period

We are currently using QB 2006 Pro (upgraded from 2003 Pro) in accrual basis. Our CPA is complaining because after we close a period (quarterly), QB is still making changes to it. I can't find a way around it.

Here's an example:

On December 30, 2005 we receive an item on a purchase order. The PO price for the item is $25.00. Once received, it is listed as a liability for $25.00. At the close of business on Dec 31, 2005 the quarter is closed and I set the password. On January 2, 2006 we receive the actual invoice from the vendor in the mail. The vendor has increased the price to $26.00 and charged $3.50 for freight. When try to enter the invoice as an "Enter Bill for Received Items", we enter the new price, freight, and invoice number against the received PO. QB tells us the transaction is linked to other and do we want to continue. If we say "No" - QB doesn't continue or enter the invoice. If we say "Yes" - then we get the closed period dialog asking for the password. If we don't enter the password, we have to cancel the entry If we do enter the password, QB goes back to the prior period and updates the price and adds the freight charges. Therefore, all our financial statements for December are now incorrect.

Does anyone know of a way to correct this problem? I prefer not to enter 2 invoices (1 for the original PO and 1 for any dollar difference) because now when we write a check to the vendor, it will have 2 invoices listed for each of our PO's. Making a journal entry for every change would be time prohibitive. Not entering the receipt would screw up our PO tracking reports.

How do others handle this problem? Please help - I'm going crazy over this!

Thanx, Cevin

Reply to
Cevin
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But you have changed the prior period by doing what QB warned that you would do.

It is a question of when you recognise the cost of the item, on receipt or when you receive the goods. QB recognises this at receipt, but you now need to recognise the freight.

Create a new bill for the freight only with the supplier's invoice using the same number. They get joined for the cheque anyway. Does it matter if the invoice reference on the remittance slip has two parts?

In any case, it is only a problem over the change of period, so this should limit the number of these entries.

Would that do the trick?

Bob Williams

Reply to
Bob Williams

Yes it would, and your method is probably the simplist one available in QB. Naturally the user must allocate the cost of the freight manually to the items received in the past and enter only the allocated cost with zero quantity for each item on the invoice.

As you move up the software food chain, the software is able to automactically allocate any additional costs to the items received in the past and even adjust for differences in the estimated prices entered on the purchase order. The program would also give the user the option of specifing the accounting period these adjustments should post to. I suspect it will be a long time coming until we ever if at all see this type of functionality in an entry level program like QB.

Reply to
Allan Martin

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