Correcting transactions in Accounts Payable

[G.Scott]

We recently “discovered” the Release Restricted Funds buttons on the AP module Maintain Open Invoices and the Funds Accounting (FA) module Enter Transaction screens. A few transactions later, we also discovered these Release buttons will double the debit to a 48xx release account if this account has already been assigned the original debit for the transaction. One debit goes to the checking account and the other goes to the 49xx account, so the transaction appears correctly balanced. Both debits close to the associated 32xx equity account, so that account is reduced twice as much as it should be with each transaction.

We solved the double debit problem by creating a series of matching expense accounts, using the same last two main account numbers and the same 3-digit subaccount numbers. The initial (real?) transaction debits to the expense account and the release account debit goes on to the 32xx and 49xx accounts. (These expense accounts are unbudgeted since they won’t handle unrestricted operating funds and can thus be excluded from some reports.)

During the interval between the above discoveries, a few checks were written to cover some specific vendor invoices and some credit card payments, and the associated transactions contained double debits that must now be removed. All these transactions have been posted in the FA module and need to be reversed and re-entered.

Reversal and re-entry are straightforward in the FA module. However, for checks that were processed through the AP module, the caveat on manual pages 206-7 cautions:

Note: If the entry you need to correct was created in one of the other modules (e.g. Accounts Payable), your void and correcting entries should be created in the originating module instead.

We are looking for the appropriate method to access a posted transaction through the AP module for correction.

In the AP module, the Locate functions on both the Maintain Open Invoices and Maintain Computer Generated Checks only list recent, apparently unposted, transactions. The Void Check function does not offer a screen for transaction re-entry. We are uncertain as to whether the number of a voided check could be re-used if a corrected transaction were entered for it. (We don’t want to remove the check number, only correct the transaction involving it.)

If a transaction can only be corrected in the FA module, will the corrected data be transmitted to those locations that will ensure all report data is accurate?

Is the caveat in the manual incorrect (or inapplicable)?

[NeilZ]

We recently “discovered” the Release Restricted Funds buttons on the AP module Maintain Open Invoices and the Funds Accounting (FA) module Enter Transaction screens. A few transactions later, we also discovered these Release buttons will double the debit to a 48xx release account if this account has already been assigned the original debit for the transaction. One debit goes to the checking account and the other goes to the 49xx account, so the transaction appears correctly balanced. Both debits close to the associated 32xx equity account, so that account is reduced twice as much as it should be with each transaction.

Um .. you should not be using release accounts in the original transaction, the system uses it when you click on the release button. What the release button does is move funds from the restricted net assets account to the unrestricted net assets account.

All you should do is use the standard DEBIT from the expense account and CREDIT to the checking account.

We solved the double debit problem by creating a series of matching expense accounts, using the same last two main account numbers and the same 3-digit subaccount numbers. The initial (real?) transaction debits to the expense account and the release account debit goes on to the 32xx and 49xx accounts. (These expense accounts are unbudgeted since they won’t handle unrestricted operating funds and can thus be excluded from some reports.)

You say the debit 'goes on to the 32xx and 49xx acccounts' .. I'm assuming that you mean because the restricted income acccount closes to the 32xx account, the system updates the 32xx account.

During the interval between the above discoveries, a few checks were written to cover some specific vendor invoices and some credit card payments, and the associated transactions contained double debits that must now be removed. All these transactions have been posted in the FA module and need to be reversed and re-entered.

Reversal and re-entry are straightforward in the FA module. However, for checks that were processed through the AP module, the caveat on manual pages 206-7 cautions:

Note: If the entry you need to correct was created in one of the other modules (e.g. Accounts Payable), your void and correcting entries should be created in the originating module instead.

We are looking for the appropriate method to access a posted transaction through the AP module for correction.

In the AP module, the Locate functions on both the Maintain Open Invoices and Maintain Computer Generated Checks only list recent, apparently unposted, transactions. The Void Check function does not offer a screen for transaction re-entry. We are uncertain as to whether the number of a voided check could be re-used if a corrected transaction were entered for it. (We don’t want to remove the check number, only correct the transaction involving it.)

If a transaction can only be corrected in the FA module, will the corrected data be transmitted to those locations that will ensure all report data is accurate?

Is the caveat in the manual incorrect (or inapplicable)?

The caveat in the manual is correct, you want correct the source of the final transaction posted in FA from the module that created it.

To answer your questions:

1. You want to correct the incorrect entries by VOIDing the check.
2. You then create a MANUAL CHECK with the correct entries (making note of my explanation of how the release button works) using the SAME check number as the VOIDED check.
3. Post everything to Funds Accounting. This will update all the proper files in Accounts Payable, and update the accounts in Funds Accounting.

[G.Scott]

Neil,
Thanks again for an immediately useful response. I'm sure your instructions will work, and I appreciate your description of the Release button function as well. Out of curiosity, I re-read the AP section of the manual and didn't find what I would consider a clue about how to correct an AP transaction, so you picked up where the manual left off!

[NeilZ]

Neil,
Thanks again for an immediately useful response. I'm sure your instructions will work, and I appreciate your description of the Release button function as well. Out of curiosity, I re-read the AP section of the manual and didn't find what I would consider a clue about how to correct an AP transaction, so you picked up where the manual left off!

Well, in the v115 manual in Funds Accounting on page 206, the section about Correcting Posted Transactions it says this:

Note: If the entry you need to correct was created in one of the other modules (e.g. Accounts Payable), your void and correcting entries should be created in the originating module instead. When you post the correcting entry from another module, PowerChurch Plus will automatically transfer the entry to Fund Accounting. Use the procedure described below if you only need to make corrections directly to the Fund Accounting module.

The AP section on Voiding Checks (page 252) does go over how to void. It does talk about voiding a check if there's a problem with the printing, but doesn't go over what to do when correcting a transaction. That would be a good addition in that location. FWIW .. it does logically follow that if you're going to void a check written out and sent (and possible already cleared) you need to replace it with another using the same check number. But you're right, it there could be a blurb about doing that if necessary.