Hello --
In trying to clean up some old books I saw a negative total on A/P on a non-profit's balance sheet that slowly increased over three years. (2015-2016-2017) -- though the company pays their bills immediately. I found the source for one of these and indeed it was an AP account overpaid -- entered without the benefit of going against a bill. It would be very time consuming at this point to find the sources. I posted an adjustment to Retained Earnings to write these off but is that the right thing to do in this case? In the current year it would have been easy to correct. But for closed years would I have had other choices? 3 years after the fact I could have created a bill for the one overpayment I found -- but where and when would I put it since the 990 is long filed. If there's a good way to do this I'd actually go look for the others. This kind of thing drives me crazy.
Thanks for your help...
In trying to clean up some old books I saw a negative total on A/P on a non-profit's balance sheet that slowly increased over three years. (2015-2016-2017) -- though the company pays their bills immediately. I found the source for one of these and indeed it was an AP account overpaid -- entered without the benefit of going against a bill. It would be very time consuming at this point to find the sources. I posted an adjustment to Retained Earnings to write these off but is that the right thing to do in this case? In the current year it would have been easy to correct. But for closed years would I have had other choices? 3 years after the fact I could have created a bill for the one overpayment I found -- but where and when would I put it since the 990 is long filed. If there's a good way to do this I'd actually go look for the others. This kind of thing drives me crazy.
Thanks for your help...