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G
GJ67
November 23, 2023
Question

Prior year adjustment

  • November 23, 2023
  • 1 reply
  • 0 views

Hi,

money spent for an asset last year was accidentally booked as expenses.

 

To correct this error this year, I understand I book the amount on assets vs. prior year adjustments, an equity account. This account is not part of the QB Online standard, so I have to add it.

* What definition type to chose? The only one that seems to fit is "Accumulated Adjustment"

* How do I make sure that this account "Prior Year Adjustments" will be reconciled with "Retained Earning" at the beginning of the next year?

 

Thx, G

1 reply

J
JamesM4
November 24, 2023

Hi there,

 

It's great to have you join the QuickBooks Community. Rest assured, I'll be happy to point you in the right direction so you can record your transactions with ease using QuickBooks. 

 

Based on the details you've shared above, I  recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in and share their advice. 

 

Let me know if this info helps. I'm here to steer you in the right direction.

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