Addbacks / Depreciation

[Sally]

Hi I wonder if anybody can help me. I am trying to do my Year End for '08. I have taken out a P&L and BS before running the Year End. I have done the appropriate workings, in a spreadsheet, for submital to revenue and needed to addback some expenses and the Depreciation. The Problem is, how do i addback expenses in SAGE to make it reflect correctly next year.

I have tried to CR the Expense accounts and DR the P&L (3200) and this gives me the correct P&L (My original Profit + the addbacks) but when i do the year end and look at the next year, the P&L is clear, which i assume is correct but the BS brings forward last years profit in Reserves but it doesnt include the amount added back.

[Site4]

The reason that you're getting the slightly bonkers result is that in crediting the P&L and Debiting the P&L in the balance sheet you're cancelling the transactions out in the carried forward figures. What you need to do is find out where the non-P&L half of the postings should be going.

That is to say, if you have over-charged depreciation in the year, the original entry will have been debit P&L (let's say 8000) and credit the Balance sheet (let's say 00x1). Your correcting entry is therefore debit the balance sheet (00x1) and credit the P&L. If you have the 2008 year open, post to CR 8000 DR 00x1, if you've closed the year and are now in 2009, post to CR 3200 DR 00x1 this will correct your assets and bring forward the correct P&L figure.

Similar situation for your expenses. If for instance, you have over-charged postage, your original entry will have been DR 7501, CR ????. Possibly creditors, petty cash, bank, etc. If you then follow the same principle as we did to correct the depreciation, you'll be sound.

HTH.

[Sally]

Thank you for that Dave. That makes total sense about the expenses. I can also see where im doubling up in the P&L but the problem i have now is with the Depreciation.
My original transaction was to DR the Asset Dep account 00x1and Cr the Dep expense 8000 because i need to depreciate the asset. When the Adjusted Profit is done, the depreciation is disallowed against the profit so i have to add it back to profit somehow in sage. I dont want to take it out of the depreciation nominal as it shows the value of the asset so i dont have a Balance Sheet nominal to Cr it to.

Sue

[Site4]

It's all in the balance sheet...

I've confused myself, now,. I'll try and elucidate tomorrow.