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Process Prior-Year Adjustments

Post year-end adjustment journals in the prior year’s designated adjustment period without unlocking the month

What is it?

Authorized users can post or unpost year-end adjustment journals in month 12 of the accounting year immediately before the Current Accounting Year, even though the period is closed.

Month 12 serves as Counta’s year-end adjustment period, so all prior-year adjustments can be created and posted there. Users do not need to reopen the accounting month before processing the adjustment.

Why does it matter?

Year-end adjustments can be processed without reopening a closed accounting period. This provides a more controlled workflow and limits changes to prior-year financial data to Administrators and users with the appropriate permission.

After a prior-year adjustment is posted or unposted, the current year’s GL Opening Balances must be re-created so they reflect the updated prior-year balances.

How does it work?

Configure access

1. Navigate to Set Up Files > User Access Group.

2. Select the User Access Group responsible for processing year-end adjustments. If only one person should have access, you can create a dedicated UAG for that person. 

3. Add Journals – Create Prior Year Adjustments to the group’s transaction access.

4. Save the User Access Group.

Administrators can use the function without being assigned the transaction type. Assign the Administrators UAG only to users with authority to make system-wide changes. 

Create and post adjustment journal

Any user with full journal access can create a journal in month 12 of the prior year even if it's closed, but they won't be able to post unless they have Administrator rights or their UAG has access to the new transaction type. 

  1. Create a new journal.

  2. Select the previous accounting year and accounting month 12. All prior-year adjustments are processed in month 12.
  3. Enter and review the adjustment details.
  4. Select Post.
  5. Review the warning that the accounting month is closed and that the current year’s GL Opening Balances must be re-created.
  6. Select OK to post the journal, or Cancel to return without posting.
  7. Re-create the GL Opening Balances for the Current Accounting Year
    1. Navigate to Set Up Files > Company Settings. 
    2. Click the Create GL Opening Balances hyperlink at the top of the page. 
    3. Enter the current Accounting Year and press Create. 

Correct a prior-year adjustment 

1. Open the prior-year adjustment journal that needs to be corrected.

2. Select Unpost.

3. Review the closed-period warning.

4. Select OK to unpost the journal, or Cancel to leave it posted.

5. After making the required correction, post the journal again.

6. Re-create the GL Opening Balances for the Current Accounting Year.

Important considerations

  • The function applies only to month 12 of the accounting year immediately before the Current Accounting Year.

  • Only Administrators and users with Journals – Create Prior Year Adjustments access can post or unpost these journals.
  • Counta displays a warning before posting or unposting the journal.
  • Counta does not re-create the current year’s GL Opening Balances automatically.