Friday Feature - Editing Requisition Liabilities
Sometimes things don't go as planned. And requisition processing is no exception. You think the vendor has the product on back order only to find out they stopped producing it.
And, sometimes these unplanned events don't happen at convenient times, like during the current fiscal year or while the previous fiscal year is still open. That's why Escape Online lets you edit the liability field in the requisition AFTER year end has been processed and closed.
Let's use the example above. It's September 2012 and you have had several items on back order since June 2011. The requisition was carried over, creating a liability.
You've now received the items but the liability is too high and you need to decrease it by $15. With the year closed, how do you change that liability?
It's okay. Escape Online has got you covered!
To do this, go to the requisition's Liability field for the current year expense account for the items and enter -15 (negative 15). This increases the expense account and decreases the corresponding liability account.
Escape Online displays the liability as a negative, giving users a "visual" so that they know that the liability was changed after the previous fiscal year was closed.
Behind the scenes, Escape Online automatically creates the journal entries for the current year, crediting the expense account, fixing the encumbrance, and debiting the liability account.
Now that's a good back up plan!