Sunday, February 5, 2012

The 7 Most Common PCLaw Errors – Posting Errors (PCLaw generated)


As we discussed last week with accounts Receivable errors, PCLaw can from time-to-time generate errors by misallocating data already entered. In my experience, the errors being discussed this time most often occur with the Input Tax Credits on expense entries that are actually non-taxable.

What happens:

You post a non-taxable expense.

It does not matter which bank you use, or if you use Accounts Payable to post the expense.

Your cheque is for the correct amount, and your bank will reconcile, which is why using the G/L reconciliation on a monthly basis is so important.

When you locate the offending entry, you will find the correct cheque amount, the expense amount, and a tax amount showing on the bank or A/P report.

Simply remove the entry and redo. Run your report again and confirm the new entry is correctly posted.

As always, I invite your comments and suggestions for future post topics. Next week – Partial Posting Errors.