In this month's "technical tip" we are focusing on Nominal Ledger and reversing the effect of a prepayment. If you have set up a prepayment for an expense and created the related deferred postings which are waiting to update the nominal ledger when the accounting periods are opened.  You then realise this is a mistake and want cancel the effect of the prepayment – you can’t just delete these waiting postings.

 

Solution ?  

Post another prepayment with the same values and dates but simply reverse the prepayment and expense nominal accounts when setting it up.  The screens below illustrate this process (which could also be applied to accruals) :  

Firstly setting up the original prepayment : 

 

 Which creates deferred postings (January charge shown in yellow) :

 

 To reverse the effect of the prepayment :  

 

 Which creates deferred postings (January shown in yellow again) : 

Report of the month

The report for February is now available.  This report displays one line per nominal, grouped by the nominal code cost centres, showing the total debit, credit and balance value for the date range selected, of daily transactions grouped by transaction type.  To access this report simply follow the link. 

February Report of the Month

Each month Sage will provide a "Report of the Month" so it is worth coming back to this page on a regular basis.  If you found these reports useful please let me know and which ones as feedback is always welcome.