USA Help with Accounting Question

[Garry Sofjan]

Hi Everyone,

I have a question about employee expenses.
It was the end of the month and an employee submitted her expense report in September for 5K and since our A/P person did not cut the check until Oct 2nd. I created a manual entry by debiting her expenses and crediting Accrued Expenses. In October I did a reverse entry by debiting Accrued Expenses and crediting her expenses. The A/P person supposed to use October period when entering her expenses, but she used September period instead. In the end we have 10K expenses in September instead of 5K. How do I correct this?
Thank you in advance.

 

[kirby]

You cannot simply reverse the AP person's entry because I am sure the AP person's entry for Sept was DR Exp and Credit Accts payable. So if you use a journal entry to reverse that you throw the AP detail out of balance. So just do this - in SEPT Debit a suspense acct and CR the Expense and in OCT reverse that entry.

 

[Garry Sofjan]

Thank you so much. I have two problems with that. One is Sept period is close and second we already submitted total expenses to the corporate.

 

[kirby]

The info in your last post would have been a really good thing to put in your original post!

Since Sept is closed and sent to Corporate , put a fork in this issue - it is DONE!