USA expenses from last fiscal year into the new year

[Burgen Havens]

I may be over thinking this, however this is my problem.
we reconcile our bank account for payroll in Quicken, however, we use GP as our accounting software, so there are cash and expense accounts in GP that we use for financial's.
Last year (6/30) there were 5 expense transactions entered into GP and Quicken. The "payment" for those transactions cleared the bank in July (next fiscal year).

Do I need to create a transaction in GP for this fiscal year to reflect those expenses that were in the last fiscal year?

My balance brought forward in GP WAS SHORT by the amount of these 5 transactions. SO my Beginning bank statement balance was more than the beginning cash balance in GP.
again, we don't use GP to reconcile the account, but I need the cash balance to match my Bank Statement.
I"m thinking that an adjusting entry was never created. They were just entered as expenses.

I think I'm over thinking. Any suggestions would be super helpful.

Thank YOU!

 

[Victor Shah]

You can account for those payments as "Prepaid Expenses" in June (Dr. Prepaid Exp A/c & Cr. Expenses A/c) on 06/30 and reverse that entry in July on 07/01. This way, you will not have to change your Bank Reconciliation and your expenses will be booked in the right period.

Your if you have already deleted the transactions as you have the difference of those 5 transactions in GP. You can record on 06/30 as

Dr. Prepaid Exp
Cr. Bank Account

on 07/01
Dr. Expenses A/c
Cr. Prepaid Exp

Let me know if this helps.

 

[kirby]

Time out.
The suggested fix does not work if those expenses actually belonged in 6/30/17.
For example, if there was a payment for salaries earned in June 2017. Those expenses need to be recorded in fiscal year ended 6/30/17.
So, you are just looking at the standard timing difference ( bank reconciliation) caused when checks clear the bank in a later period. And of course because of the uncleared checks the cash balance will NOT match the bank statement. But that's OK - standard bank reconciliation item.

 

[Victor Shah]

Kirby,

Here, the checks were cleared the bank in June but the expenses are for the period of July. And that is why he need to record the payment in June.

 

[kirby]

The info you cite ("the expenses are for the period of July") is not in the post from Burgen Havens. How did you determine this?