Carry-0ver expenses from previous year.

[lindac]

I use v9 version of PC. This is a new problem for me. We had several large expenses from 2007 that are not being paid until Feb 2008. I still have 2007 open.
For time being, I am lumping those payments into an expense account "carry over from previous year" as I pay them I am referencing the 2007 account numbers in the description lines. I realize that this is going to hurt our 2008 budget. Is there a better way to do this?
I may be confused about cash systems like PC but in order for the expense to show up in the month you want it in (and on reports), don't the income and expenses have to have occured and be dated within that month? Since using PC, I have always been able to get our expenses within the month other than audit and now this year.
Thanks for your help

[Matt]

I assume from your question that you want the expenses recorded in 2007 but the actual cash outlay to pay the expenses won't occur until Feb 2008. In this situation what you would do is post an entry in 2007 that debits an expense account and credits a liability account. Then in Feb 2008 when you pay the bill you will debit the liability account and credit the checking account. These accounting entries will keep the expense from being recorded in your 2008 income and expense statement.

[lindac]

Thank you so much Matt.