Moving Expense Periods
Expenses were posted in an incorrect period and need to be moved to the correct period. Example; the Electric bill was posted to period 2018.01, but should have been posted to 2017.12. The payable has already been posted and paid.
A Journal Entry will be used for this process.
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The Journal Entry Expense period must be the smaller of the two periods. In this example; 2017.12
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Select “Reverse on” and select the other period. 2018.01.
If the expense needs to be recognized in the smaller of the two periods;
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Debit the Expense account the amount of the expense. Credit the Deferred Expense account.
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To recognize the expense in the greater of the two periods; Debit the Deferred Expense account the amount of the expense. Credit the Expense account.
Select a unit if you would like. Make sure to select the unit on both the debit and credit to keep the expense associated with the unit.