Life doesn't always fit nicely into a fiscal year. Sometimes you think you are ordering just what you need, but you come to find out it is more than you need. If the items you order come from your stores warehouse, how does Escape Online handle that return during year end?
Well, that is up to your department's standards. Escape Online gives you two ways to manage the process. You can force all stores returns to post to the current year. Or, you can allow stores returns to post to the year from which they were ordered.
Obviously, forcing all returns to the current year means that if I order an item in May 2011/2012 and return it in July 2012/2013, the return will be posted in 2012/2013.
But, what if 2011/2012 is still open? Why not have that return to post to that prior year? Why not, indeed! That is what the Prior Year Returns flag in the Department record is all about. Check it out.
If you set this flag to Post to Current Year, the reversing expense journal entry is created in the current fiscal year. But, if you set the flag to Post to Prior Year, the reversing expense journal entry is created in the prior fiscal year, as long as it is still open.
This flexibility at the department level is awesome because while purchasing may want to have stores returns journaled to last year, the food services department may not.
And, that fits nicely into any organization's standards.