Transitory accounting entries

You can create entries which you mark as "transitory"; these entries will then be included in the data file for the following year, but with automatic inversion, i.e. the amounts appearing on the debit side will be passed on to the credit side and vice versa. The transitory entry you create at the end of one year will thus be cancelled out by an inverse entry in the following year.

As a reminder, transitory entries concern prepaid expenses, accrued income, income received in advance and accrued expenses.

Transitory entries date

The only dates allowed for transitory entries are the last day of the current fiscal year and the first day of the following fiscal year. These start and end dates (usually January 1 and December 31) are those you have set in the Maintenance Configuration window.

Add a transitory entry

Let's take the example of an invoice from a creditor which you booked in the last month of the period, but which relates entirely to the following period. In this case, you need to create a transitory entry so that the current year's Profit & Loss is not affected.

When you create an entry with a December 31st date (if this is the last day of the period), a checkbox entitled Transitory appears to the right of the Date field. Simply tick this box and the entry will be considered transitory.

Transfer to the new period

When you select the New Period  command from the File menu, you are presented with a dialog box containing a Transitory check box. This option must be ticked for your transitory entries to be automatically transferred to the new period.

This option is also available when updating balances for the new period.