Specifications

Computer Tutorial 3 Lesson 4  5
TOPIC 4.5
Correcting transaction errors after posting
Once transactions are posted to the general ledger, you generally cannot delete or modify
them. As noted previously, if a transaction does not balance, it will not be posted to the
general ledger. Accpac is designed so that you cannot enter a non-existing account number
into a transaction batch, thus further reducing the chance of error.
In Accpac, if you create a batch that does not balance, the program will save it. If you try to
post the batch, it will look like the program is posting the entry, but it is not. Instead, the
program creates a new batch (an error batch) containing the entries with errors for you to
review and fix.
If you try to enter a transaction with an account number that is not part of your chart of
accounts, the program prompts you to add the account.
Common posting errors
Although a batch of transactions may appear correct to Accpac, it is possible to misclassify
transactions. A common mistake is debiting or crediting a wrong account in the general
ledger. For example, instead of debiting account 1000 (Petty cash), a similar account 1100
(Bank) could be debited. In this case, because Accpac could not detect that a misclassification
had occurred, the transaction would be posted.
Another common mistake is to place transactions in the wrong fiscal period. You can post to
any open period. This can be particularly treacherous during the year-end period, when it is
possible to enter transactions into both the current year and the next year. If you make a
mistake in specifying the Year/Period, Accpac will not be able to detect the mis-specification
and will post the transaction to the chosen period, provided that the specified fiscal period is
open for posting. (See Lesson 7 for details on how fiscal periods can be closed or opened.)
As stated previously, you are generally not able to edit or delete transactions after they are
posted to the general ledger. To correct an entry posted in error, you need to enter an
adjusting entry to achieve the desired effect, or reverse the whole entry and enter a new one.
With Accpac, you are now able to reverse a posted transaction. You would then have to
re-enter a corrected transaction.
Correcting transaction errors after posting
Suppose the purchase of a plant (land and building) was recorded as follows:
Land 30,000
Building 57,000
GST payable 6,090
Mortgage payable 77,000
Bank 16,090
The entire $77,000 would be posted to Mortgage payable. However, assume that the $77,000
mortgage consisted of two components — a first mortgage of $67,000 at 12% and a note
payable of $10,000 at 14%. In order to rectify the entry, you have two alternatives: (a) make
an adjusting entry, or (b) reverse the entry and enter the correct one.