Tech Forum

I recently noticed that expenses had not been properly assigned to the right budget categories in the prior year. After I corrected the expenses, I noticed that the adjusted expenses are showing up in this year's expense report. Why is this happening? And more importantly how do I fix? Can you not go back and adjust expenses in the prior year after it has been closed?

milleju wrote:I recently noticed that expenses had not been properly assigned to the right budget categories in the prior year. After I corrected the expenses, I noticed that the adjusted expenses are showing up in this year's expense report. Why is this happening? And more importantly how do I fix? Can you not go back and adjust expenses in the prior year after it has been closed?

What really happens when you adjust expenses is that money is transferred from one category to the other. The transfer takes place in this year, so it affects this year. For example, if you had a $100 expense in Young Men last year, and you change it this year to be in the Young Women category, you are essentially creating a $100 credit for Young Men and a $100 charge (debit) for Young Women in this year. That will distort both categories for this year.

For budget categories, I personally would try to make all corrections in the year of the expense. If that doesn't happen, I wouldn't bother trying to make the adjustments -- it's more trouble than it's worth, since you start off the new year with a fresh budget, and you've seen what happens when those adjustments cross a year boundary.

For the Other or Ward Missionary categories, I would certainly make the adjustments whenever you discover the problem, since that affects balances going forward.

Thanks, understood. Is there any way to reverse what I've already done?

milleju wrote:Thanks, understood. Is there any way to reverse what I've already done?

Simply recategorize those expenses that you recently adjusted so that they are back the way they were. That will create a transfer in this year that exactly reverses the transfer for the other adjustment.