Re: [GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
On Sat, 7 Jan 2023 at 23:15, Adrien Monteleone < adrien.montele...@lusfiber.net> wrote: > Yes, the principle of Materiality. The link Geoff gave was quite useful to me. I have noticed some differences between my calculations and my accountants before. He has replied “That will be reflected in next year’s accounts”. It was only £5.59, but I knew could not be explained by rounding errors. Now this maybe a misunderstanding on my part, and may depend upon the jurisdiction, but here’s one example. For my last years accounts (ending February 28th 2022), the money in the bank account at the end of the financial year was X. He submitted X to Companies House. Yet there were two transactions shown on the bank statement on 1st March, but shown with a date in late February. I thought he was supposed to include those two transactions in last years accounts, but he didn’t. He has not answered my email on the topic. He probably determines that they are immaterial, as they total about £15. > > It isn't worth spending time looking for small errors. Just adjust them > out and move on. That would niggle me. In any case, I would not know how to adjust it properly. My background is science, (I have a Ph.D not a medical degree). A number of scientific discoveries have been made by people who refuse to ignore things that could easily have been dismissed as insignificant. I suppose that I need to get out of that habit when chasing immaterial amounts of money. > > Otherwise, I'd say enter the transaction on what you think is the proper > date and re-reconcile. That’s what I have now done. I stuck the earlier date. I don’t have any record of the cancellation - I didn’t record it and Royal Mail didn’t email me any confirmation of the cancellation. But I know that £0.60 was the fee to get a parcel collected, so I knew what it would be. > But that begs the question, how did you reconcile without it? The truth is that in this point in time, I am trusting the bank’s records more than my own when it comes to small things like that, as I would not have bothered recording that I sought a £0.60 refund. The only reason I would bother going to the Royal Mail website and cancelling the pickup would be to save the postman a wasted journey. I would not have bothered recording it in my spreadsheet. But now I am using GnuCash, I will record these sorts of things. > > If you had to make an adjusting entry, that will also need to be edited > or deleted. I will have to find out how to handle adjustments. It is an area of accounting that I don’t understand, but are willing to learn. Regards, > Adrien Dave. > -- Dr. David Kirkby, Kirkby Microwave Ltd, drkir...@kirkbymicrowave.co.uk https://www.kirkbymicrowave.co.uk/ Telephone 01621-680100./ +44 1621 680100 Registered in England & Wales, company number 08914892. Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Chelmsford, Essex, CM3 6DT, United Kingdom ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
Yes, the principle of Materiality. It isn't worth spending time looking for small errors. Just adjust them out and move on. Otherwise, I'd say enter the transaction on what you think is the proper date and re-reconcile. But that begs the question, how did you reconcile without it? If you had to make an adjusting entry, that will also need to be edited or deleted. - I always understood Petty Cash to be for incidental expenses that didn't necessarily need to be tracked in dedicated accounts. The physical funds were usually accessible without issuing a check to pay for them from a comptroller. But it is still 'reconciled' to cash receipts for purchases/payments. They aren't necessarily 'immaterial' but merely listed as 'other expenses'. Regards, Adrien On 1/7/23 3:14 PM, Geoff wrote: Minor Transactions Accountants may sometimes deem minor transactions to be immaterial. This may happen when a financial controller is attempting to close the books for a particular accounting period. Accountants can choose to omit minor transactions from the final calculations if they would have an immaterial impact on the overall financial statements. https://uk.indeed.com/career-advice/career-development/materiality-in-accounting So, do whatever works efficiently for you. The time you spend contemplating the "correct" date for a 60p transaction is far better spent on what you do best - running your business. (Not so long ago this would have been accounted for out of a bucket called "petty cash" and reconciled once every month or so.) ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
Minor Transactions Accountants may sometimes deem minor transactions to be immaterial. This may happen when a financial controller is attempting to close the books for a particular accounting period. Accountants can choose to omit minor transactions from the final calculations if they would have an immaterial impact on the overall financial statements. https://uk.indeed.com/career-advice/career-development/materiality-in-accounting So, do whatever works efficiently for you. The time you spend contemplating the "correct" date for a 60p transaction is far better spent on what you do best - running your business. (Not so long ago this would have been accounted for out of a bucket called "petty cash" and reconciled once every month or so.) Regards Geoff = On 8/01/2023 4:24 am, Dr. David Kirkby wrote: On Sat, 7 Jan 2023 at 14:37, Maf. King wrote: Is the Effective Legal Tax date 6th or 19th? Enter it to that date. The reconcilliation will not be affected either way. Maf. Certainly not the 19th, but probably not the 6th either. It was for postage and a pickup fee. I must have cancelled the pickup and rebooked it for a later date. So arguably it is an unknown date between the two. The amount is only £0.60 (< $1 USD), and nowhere near the end of the accounting period, so I don’t think anyone is going to be too bothered about the accuracy of the information. I think setting it the 6th is probably best, as that’s consistent with more than 90% of the transactions. I was concerned that it might cause problems with reconciliation, in which case I would certainly not want to risk problems with that. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
On Sat, 7 Jan 2023 at 14:37, Maf. King wrote: > > Is the Effective Legal Tax date 6th or 19th? Enter it to that date. The > reconcilliation will not be affected either way. > > Maf. Certainly not the 19th, but probably not the 6th either. It was for postage and a pickup fee. I must have cancelled the pickup and rebooked it for a later date. So arguably it is an unknown date between the two. The amount is only £0.60 (< $1 USD), and nowhere near the end of the accounting period, so I don’t think anyone is going to be too bothered about the accuracy of the information. I think setting it the 6th is probably best, as that’s consistent with more than 90% of the transactions. I was concerned that it might cause problems with reconciliation, in which case I would certainly not want to risk problems with that. -- Dr. David Kirkby, Kirkby Microwave Ltd, drkir...@kirkbymicrowave.co.uk https://www.kirkbymicrowave.co.uk/ Telephone 01621-680100./ +44 1621 680100 Registered in England & Wales, company number 08914892. Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Chelmsford, Essex, CM3 6DT, United Kingdom ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
On Saturday, 7 January 2023 14:21:21 GMT Dr. David Kirkby wrote: > I'm inputting my 2022 accounts, and have reconciled up to 10/04/2022 > (DD/MM/). Now I just found a refund, dated 06/04/2022, but does not > appear in the bank account until 19/04/2022. Is it safe to create a credit > note, dated 06/04/2022, then reconcile up to 19/04/2022 at a later date? Or > should I date it 19/04/2022, and reconcile up to that at a later date? > Is the Effective Legal Tax date 6th or 19th? Enter it to that date. The reconcilliation will not be affected either way. Maf. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
[GNC] Will adding a transaction dated earlier than the last reconciliation cause a problem?
I'm inputting my 2022 accounts, and have reconciled up to 10/04/2022 (DD/MM/). Now I just found a refund, dated 06/04/2022, but does not appear in the bank account until 19/04/2022. Is it safe to create a credit note, dated 06/04/2022, then reconcile up to 19/04/2022 at a later date? Or should I date it 19/04/2022, and reconcile up to that at a later date? Dr David Kirkby Ph.D Email: drkir...@kirkbymicrowave.co.uk Web: https://www.kirkbymicrowave.co.uk/ Kirkby Microwave Ltd (Tel 01621-680100 / +44 1621-680100) Stokes Hall Lodge, Burnham Rd, Chelmsford, Essex, CM3 6DT. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
