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Last year closing balance is mismatching with current year opening balance (or) Profit & Loss (P&L) & Balance sheet, summary figure mismatches with drill down balance (or) bills which are cancelled in POS/DE shows in party ledger. (or) Bill cancellation reversal entry impact

Dear Team,

As per accounting policy, whenever you cancel or delete a Sales/Purchase/Return...entries from POS, it will not delete the entry at accounting. Instead of removing the entry from accounting ledger, it will pass a reverse journal. Ex: you made a sales bill CA1 on 01 Jan 2015. You are cancelling it on 05 Jan 2015. In Trac, the entry which were available in 01 Jan 2015 will be there as it is. Its equivalent reverse entry will be there on 05 Jan 2015











As per above case, if you see the ledger report upto 01/01/2015, you will perceive that ledger balance is not affected. When you see upto 05/01/2015, the base entry and its reverse entry also will be there.



There are few configuration to handle this reverse entry posting:

No need of Reveres Entry on Delete

If you enable this, such reverse entries will not be posted for such kind of cancellation entries. It will delete the entry itself which are been cancelled.












Please note: This will have impact only for the entries which are cancelled here after. One more configuration is available:

Not to show the cancelled entries


When you enable this, the reverse entries & its base entries which are already available will not be shown in ledger report, day book and any other reports.

Before enabling the configuration:



select this configuration:



After enabling the configuration:



But you may face some impacts when you enable this:

Impacts:

Assume the case, the bill is made on 05 Jan 2015 (2014_2015 financial year ) for 5000. But the bill cancellation is done 05 Apr 2015 (2015_2016 financial year).

So, the base entry will be there in 2014_2015 financial year period and its reverse entry will be there in 2015_2016 financial year period. In above case, with enabled the 'Not to show the cancelled entries', Last year's actual balance is included that cancelled entry also, so last year's actual balance as per journal is 5000. So that will be carried forward as opening balance. But while viewing the ledger report, as above configuration is enabled, in ledger report the balance will show as zero in last year. But in current year, the opening balance will be as 5000. So you will perceive the difference between last year closing and current year opening. So, please disable above configuration 'Not to show the cancelled entries' and compare last year closing & current year opening.









Similar to above, In the Trial balance, Balance sheet and Profit & Loss report also the summarized figure which shows at first page will display the actual amount (effecting the canceled entries also) but while drill down and view the ledger report, it will display the report & balance as per configuration. So, with above configuration enabled case, you will perceive the difference between Trial balance summary amount and drill down detailed amount.











Thanks and Regards,

S.Karthikai
Trac Team- Quality Analyst.






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