User error in journal entry

[Former Member]

Hi Experts,

We have a client committed a mistake in recording JE. Here's the scenario;

1.) Books of accounts of 2008, 2009, 2010 and 2011 are already closed

2.) On January 1, 2012, the user cancel the period end closing of 2008. The original record of 2008 in period end closing was Credit to Expense and Debit to Retained earnings.

3.) After she cancelled that entry, the record was Debit to Expense and Credit to retained earnings.

4.) This procedure affects GL accounts and trial balance but it doesn't affect the Profit and Loss statement of SAP.

5.) The result is the GL balance of 2012 for that expense accounts vs. the P&L account is not tally.

6.) Now, how can we adjust the GL account without affecting the P&L for January 2012 or how can we adjust the P&L without affecting the GL?

Please help. I made all the trial and error entry to revert the original data but I failed to come up with a resolution.

Thank you.

3RD

[Former Member]

Hi,

What you can do is to find all related JE when the cancellation occurred. Then you just need to reverse those entries one by one.

Other than this, you may not have other options.

Thanks,

Gordon

[Former Member]

Hi,

There is no reversal or cancellation for period end closing in SAP B1, all you can do is a pass manual journal entry.

If  you could provide us the postings and GL accounts involved, and please mention the Drawer names which GL account belongs too.

Regards

Venkatesh

[jitin_chawla]

Hi,

Have you just and only cancelled the JE for the affected Expense G\L Account for year 2008?

Try the following in COPY of the database :

Goto the Period End Closing again and run the Period End Closing for the years 2008, 2009, 2010 and 2011 one by one and check whether any entry appear. If appears, then try by closing it and see whether the balances in the Profit and Loss are updated.

Please make sure that the complete period is selected for the Period End Closing for prior years and not the JE period.

Check and update us with the results.

Kind Regards,

Jitin

SAP Business One Forum Team

[Former Member]

Hi Jitin,

Thank you so much for your reply.

Books of accounts of 2008, 2009, 2010 and 2011 are already closed. After the user cancelled the period end closing of one account of 2008 in 2012, the only affect data was the 2012 records. There are no more data when I do period end closing for 2008, 2009, 2010 and 2011. 

I've done all test transactions to adjust what the user did just to revert the original amount then hopefully to do the correct adjusting entry which is by doing journal entry and not cancelling period end closing.

Regards,

Ardie

[jitin_chawla]

Hi,

An important question is why the user cancelled the transaction created from the Period End Closing for the G\L Account in year 2008.

Then you can test by reversing all the transactions which have been posted for the Period End Closing for the 2008 in the COPY of the database and then perform your adjustment entry (ie. cancellation or additional entry) and then re-run the Period End Closing for the year 2008.

The complete reversal of each and every transaction for the Period End Closing for the year 2008 would be a little cumumbersome but if you can try then check it.

A little more testing is needed to be sure what would help in your case.

Kind Regards,

Jitin

SAP Business One Forum Team

[Former Member]

Hi Jitin,

The user did this entry for adjustment and she is not aware of the consequences. This procedure is not allowed. Adjustment should be made through journal entry. I've done all the adjustment necessary and all the cancellation process but whenever the 2012 got adjusted, the 2008 will have a problem. The only possible way that I can see is to close the 2012 books and create a journal entry for the specific account on January 2012 then perform another period end closing for that entry and cancel it.

Anyway, thank you for responding to this issue.

Regards,

3RD

[Former Member]

Good day,

Is there anyone who figured out this issue?

Regards,

Ardie

[nicet123]

Hi 3rd,

Restore DB to test environment and try to do period end closing again for 2008.

Hope it help.

Regards,

Nick