How to Make an Adjusting Journal Entry for Accounts Receivable in a Closed Accounting Period

Overview:

When an accounting period is closed, it signifies that all transactions within that time frame have been reviewed, reconciled, and finalized and, the books have been locked using the “Closing Books” tool in the BE Configuration Panel. However, there may still be situations where adjustments to Accounts Receivable related to that period are necessary. This article explains how to properly handle A/R adjustments when the prior period is locked.

Common Scenarios Requiring A/R Adjustments

• A payment was applied to the wrong customer or invoice.
  
• A receivable was overstated or understated due to a posting error.
  
• A bad debt write-off needs to be recognized for a prior period.
  
• A revenue reversal needs to be reflected due to credit memo issuance.

Quick Reference:

Link to Full Step-by-Step Guide