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Manual Adjustments to General Ledger 
Accounts & RDP Ledgers

Added 11/11/03 - Article ID#: K000177

The RDP system includes an extensive back office accounting system.  Every system transaction is automatically placed into the correct debit and credit accounts as part of the night audit process.  In double-entry accounting, the total debits must always equal the total credits, on each transaction and system wide.

In a perfect world the RDP back office accounting system would always be in balance.  The total debits would equal to the total credits.  However a variety of factors can cause data corruption, such as a power failure, hard disk crash on the server, etc.  When data corruption occurs an the accounting system is out of balance, RDP provides the capability to make a manual adjustment to one or more GL accounts to put the system back in balance.  

Sample Adjusting Problem

Lets look at an example to illustrate the process of making adjusting entries.  The system has an "advance deposit ledger", which has three components, as follows:

 
Component Definition
B1 Ledger

The code "B1" is assigned to the advance deposit ledger.  The total in the B1 ledger at any instant in time can be seen by using menu 98, option 184, sub-option 1

GL Account for B1 Ledger

(RDP Default = 20100) 

A general ledger account is assigned to each ledger, including the B1 Ledger.  By default this GL account is 20100.  This default account can be viewed or changed with menu 98, option 180, sub-option 1.
Sum of Reservations
with Paid Deposit
Report 766
The sum of the paid deposit on all future reservations should always equal the B1 Ledger and the GL account assigned to the B1 Ledger (20100).  This report is available from menu 3RPT, as report 766-Advance Deposit Ledger-Detail. 

 

In theory all three components above should always be the same. 

Best Way to Make a Correction - Restore a Backup

The best way to correct any data corruption problem is to restore a backup of the data from prior to the data corruption.  However, restoring a backup is often not feasible because all information entered or changed since the last backup is lost and must be re-entered.    

The second best way to fix the data corruption problem is to force the three components back into balance with adjusting entries.  The remainder of this document discusses this second best alternative.

Steps to try before making a manual adjustment:

Before making a manual adjustment to any RDP account it is critical to determine if your system is really "out of balance".  RDP support (970-845-7108) can help with this process.  Some of the actions that can be performed as a test:

  1. Exit all workstations from the system.  It is not possible to determine if the system is "out of balance" while it is in use and new transactions are being entered.  

  2. From the system Utilities Menu, use option 994 - Rebuild an RDP Data File.  Use option "C" - Rebuild All Critical Files.  When there is data corruption in one piece of data because of a hardware failure, there is usually data corruption in many other places. This utilities reads all data in the system and eliminates all data corruption.   This may take several hours, depending on the size of the property and speed of the data server.  

  3. From the Night Audit Menu use option 903 to Explode transactions.  This guarantees that all transactions that are already in the system are posted to the RDP general ledger.  

  4. Re-print reports and verify that the out-of-balance condition still exists.

  5. Compare the reports from the previous step to the same reports from yesterday to see if there are any obvious problems.  In our example you would compare the "766-Advanced Deposits" from right now and yesterday to see if any reservations are missing from one day to the next. 

Steps to make a manual adjustment:

As an example, lets assume that there has been some sort of data corruption that has caused the Advance Deposit Ledger to be out of balance.  Assume we have the following:

 

Component Balance
B1 Ledger

-19,100

GL Account for B1 Ledger

(RDP Default = 20100) 

-19, 050
Sum of Reservations
with Paid Deposit
(Report 766)
-19,000

 

The question becomes, "which of these totals is correct". The answer, unfortunately, is not possible to determine when using data that has been corrupted by a hardware failure.  As stated previously, the best solution is to restore a backup from prior to the data corruption and re-enter all information.  If this is not possible, then you can force the system into balance with the  steps below:

  1. Complete the "Steps to try before making a manual adjustment" above first.  This is critical.

  2. Add a Write off Account

  3. Force B1 Ledger to Balance Report 766

  4. Force GL Account for B1 Ledger to Balance Report 766

  5. Adjust the Write off Account so that Debits=Credits for the day

Add a Write off Account

In the example above the GL Account assigned to the advanced deposit ledger is account 20100.  This account currently has a balance of -$19,050.  Report 766 is -$19,000.  We therefore need to adjust the balance in 20100 to match report 766.   We will need a write-off account in the system so that we can make a two-sided GL entry.  Any GL account can be used for the write-off.  Lets assume we will use account 55555 as "write-offs"  To add this account to the system:

Force B1 Ledger to Balance Report 766

In the example above the B1-Advanced deposit ledger has a balance of -$19,100.  Report 766 has a balance of $-19,000.  We therefore need to adjust the B1 ledger to have a balance of $19,000.  Use the steps below to make this adjustment.

  1. From Menu 98, select option 184 - Inquire on Totals File.

  2. Select sub-option 5 - Make an adjusting entry.

  3. Enter the year during which the adjustment should be made.

  4. In the "Tb" column, type the ledger of which you want to adjust. In this example, enter "B1" for the advance deposit Ledger and press <enter> until the description of the ledger appears.

  5. The adjustment should always be made for yesterday.  Therefore enter the month and day for yesterday.

  6. Enter the amount of the adjustment and the reason for the adjustment.  In this example, the amount is +100, since we are trying to move the B1 ledger from a balance of -$19,100 to -$19,000.

  7. File this adjustment.

  8. Use option 184-1 to inquire on the B1 ledger and verify the current balance in the B1 ledger is $19,000.  I.e., verify that you made the adjustment correctly.

Force GL Account for B1 Ledger to Balance Report 766

In the example above the GL account assigned to the  B1-Advanced deposit ledger is 20100.  This account has a balance of -$19,050.  Report 766 has a balance of $-19,000.  We therefore need to adjust the B1 ledger to have a balance of $19,000.  Use the steps below to make this adjustment.

  1. From Menu 98, select option 184 - Inquire on Totals File.

  2. Select sub- option 5 - Make an adjusting entry.

  3. Enter the year during which the adjustment should be made.

  4. In the "Tb" column, type YY, which is the code for general ledger accounts

  5. Enter the GL account to adjust.  In this example, the account is 20100.  If you are not sure what GL accounts you have assigned to the RDP ledgers, use menu 98, program 182, option 1.

  6. The adjustment should always be made for yesterday.  Therefore enter the month and day for yesterday.

  7. Enter the amount of the adjustment and the reason for the adjustment.  In this example, the amount is +50, since we are trying to move the 20100 account from a balance of -$19,050 to -$19,000.

  8. File this adjustment.

  9. Use option 184-4 to inquire on the 20100 account and verify the current balance is $19,000.  I.e., verify that you made the adjustment correctly

Adjust the Write off Account so that Debits=Credits for the day

In the example above the GL account assigned to the B1-Advanced deposit ledger is 20100, and in the previous step we made a "one sided" GL entry to this account for +50.  The "+ plus sign" indicates we made a debit of 50 to account 20100.  At this point the RDP daily GL entry is "out of balance" by +50.  Our debits do not equal our credits.  (to see the daily GL entry, use menu 3, RPT, option 370, sub option 3a).  We now need to make a credit entry of $50 to the write off account to force the daily debits to equal credits, as follows:

  1. From Menu 98, select option 184 - Inquire on Totals File.

  2. Select sub- option 5 - Make an adjusting entry.

  3. Enter the year during which the adjustment should be made.

  4. In the "Tb" column, type YY, which is the code for general ledger accounts

  5. Enter the GL account for write offs added previously.  In this example the write off account is 55555. 

  6. The adjustment must be made for the same day as the previous GL adjustment, which is yesterday.  Therefore enter the month and day for yesterday.

  7. Enter the amount of the adjustment and the reason for the adjustment.  In this example, the amount is -50, because the previous adjustment was +50.  (+ sign is debits, - sign is credits.  We want debits=credits for the day).

  8. File this adjustment.

  9. From Menu 3, RPT, use option 370, sub-option 3A.  Print the report for yesterday.  All GL accounts should be listed, with the daily entry.  The sum of the daily entry column must be zero (debits=credits).

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