Guidance on Re-opening Deals
Re-opening deals should always be done with clearance from the Accounts department.
If you are still working within the Period the deal was closed then this can be reopened with the same date, any adjustments made and the deal closed again all with the same date.
If the Management Accounts, VAT return have been run and an error found at a later date then the deal should be open with the period you are NOW working in, any adjustments made with the current date and then the deal closing with the period you are NOW working in.
The Profit/loss will remain back in the period it was closed to start with and the only thing that will be processed within the current period would be the adjustment made.
By following this process it will stop any imbalances happening within the accounts.