Backpost Adjustments

Use this program to file an adjusting journal entry in a previously closed accounting month to correct errors or update accounting records. Some of the more common uses of this program are to enter adjusting journal entries into a closed year's accounts and to enter forgotten journal entries which must be reflected in the month in which they were intended, not just in the current month. After you enter the adjusting entry, TAM reposts and adjusts all General Ledger account balances from the selected month to the last month posted. After the adjustment has been posted, rerun all financial statements and reports for the months affected by the adjustments.

To use this option, you must have defined a Retained Earnings account in your chart of accounts as a type Equity and group Net Worth in case the net profit or loss is adjusted.

Although several options are available through this program, backposting should be viewed as a process. As such, the steps below present the process to backpost an adjustment with the use of those options.

1. At Home Base, click the Accounting button.
2. Click Journal Entries.
3. Click Backpost Adjustments.
4. Double click in the Agency field to select the desired agency. If only one agency has been installed, no agency code is required.
5. The current accounting month and last month posted default in their respective fields. Enter the month and year for which to backpost the adjusting entries. TAM adjusts all months from that month through the last month posted.
6. Enter the adjusting entry. Remember, debits must equal credits.
   1. Double click in the Default Code field if you wish to select a stored default journal entry. If you select a default entry, its information fills in automatically. Proceed to step D.
      
      If this journal entry is not currently stored as a default, but you would like to store it for future use, enter a new default code in the Default Code field and press [TAB]. Click OK on the Default Journal Entries window to verify you would like to add this code. The ADDING Default Journal Entries screen displays. Enter a description for the journal entry and click Add. Proceed to the next step.
      
      If this is not a default journal entry and should not be stored as one, do not enter anything in the Default Code field. Proceed to the next step.
   2. Enter the following information for each line of the journal entry. You can double click in the B, D, Account, and Schedule fields to select from a list.
      • B: Branch code.
      • D: Department code.
      • Account: GL account number to which this line will be applied.
      • Schedule: Optional. Use a Schedule to categorize or group related miscellaneous or cash journal entries. For example, use unique schedule field value and description to categorize expense of each agency automobile. All such scheduled entries may be listed through Schedules Report.
      • Description: Enter a description for the journal entry.
      • Debit/Credit: Enter the correct amount for journal entry line in either the Debit or Credit column. At end of entry, debits must equal credits.
   3. Click Accept Line to save each line of the entry. Each line displays in the lower portion of the window.
      
      Note: Click a line in the entry to revise the information on that line.
   4. Click one of the following buttons to perform the desired function:
      • Delete Line: Delete selected line from journal entry.
      • Print: Click Print to print the journal entry.
      • Print Default List: Click Print Default List to print the default journal entries.
        
        Note: Click Printer Setup to revise the printer options. Click Print Preview to view the default entries on the screen before printing. Click Cancel to skip printing the default entries.
      • Accounting Note: Enter an internal accounting note for the journal entry.
7. Review the entry to ensure that all information and figures are correct. Once the journal entry is posted printing is no longer an option: if you would like a printout of the entry, click Print prior to clicking OK. Click OK to post the adjusting entries to the appropriate General Ledger accounts and adjust the account balances as needed in the selected month and subsequent months up to the last month posted. Click Yes to confirm the entry.
8. A message displays warning you that the balances of the involved accounts will be affected. Click OK to complete the procedure.
9. Click Cancel to return to the Journal Entries screen.

Once the backpost adjustment is made it is recommended to rerun all financial statements and reports for the months affected by the adjustments