The schemes for late recording of liabilities mirror those of early revenue recognition, so we will cover only the latter topic.
According to GAAP, revenue is recognized when the earnings process is complete and the rights of ownership have passed from seller to buyer.
The first thing I would do is identify what changed.
It will be easier to determine the best resolution when armed with this information.
I did my bank reconciliation and it balanced, but now it does not match my G/L balance. When I run last month’s statements again I get different numbers. I ran my month-end foreign exchange revaluation, but now when I multiply my USD A/R amount by the month-end exchange rate it does not match my G/L control account in CAD. Why do my balance at date amounts not match my net change amounts for my income statement accounts? They are all examples of what can happen when entries are backdated after a reporting activity is completed for a period.
When inventory transactions provide new cost information, the Adjust Cost Item Entries routine (which may be run manually or set to trigger automatically) will try to make updated costing entries on a date that matches the original transaction.
hen companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences to show phony profits.
Microsoft Dynamics NAV, with its filtering ability, can make it relatively easy to find the information we need. When Microsoft Dynamics NAV posts ledger entries one of the fields of data it creates is an entry number.
This number is sequentially assigned as the entries are posted, regardless of the actual posting date.