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How do I remove old items on A/R and A/P Aging?

OLD A/P and A/R on Books

I have begun working for a nonprofit and there are a lot of old items in A/R and A/P. Really old, some are 10-12 years old. Most are JEs and some look like, from memo, that they were from the tax preparer and should have been reversed but never were. Others, not sure why. How do I properly get these items off? Every time I run an aging report it is full of old information and it takes me extra time to modify the reports so this old stuff isn't on the reports I am presenting.

Any suggestions will be so appreciated.

Thanks!!

Renee

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Oct 3rd 2018 22:47

Hello - You should correct these with Vendor (Customer) Credits or Vendor (Customer) Invoices, depending on the requirement. Then apply these to the original invoices.

Please let me know if I can provide anything additional.

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Oct 13th 2018 16:29

Since I don't know what position you hold and what authority you have, I suggest the following:

Make a schedule of all the old items that need writing off, separated by AR & AP items. Provide as much detail as possible regarding the original entry - that is, try to explain the reason for the original entry.

Along with the schedules, show the resulting fund/account impacts of writing off the accounts - this may have significant ramifications depending on the nature of your organization and whether or not you receive government funding (grants, contracts, etc.).

Bring the schedules/impact to the attention of the highest level accounting/finance person in the organization who has the authority to approve the adjustments. This information may also need to be brought to the attention of the Board of Directors and the organization's CPAs if any of the adjustments will have significant impact anywhere.

Good luck!

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