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Error: "Incorrect Procedure. Cannot post to a future year" occurs when posting a batch

Problem Description:

After posting a GL batch, an error batch is created.  On the Posting Journal Errors Report, the following error is displayed:
"Incorrect Procedure. Cannot post to a future year"

Cause:

When a new year is created in the Fiscal Calendar, this allows the sub-ledgers to process transactions for that newly created year.  However, this does not automatically update the GL into that year.  The GL requires an additional procedure (Create New Year under GL Periodic Processing) to move it into the next fiscal year.  It is possible to post transactions into 2015 (for example) in a sub-ledger, but have the GL remain in 2014.  This scenario will cause the above noted error batch and error message when the 2015 entries are attempted to be posted in the 2014 GL.

Sage 300 ERP allows posting to prior years, but does not allow a journal entry to be posted to a future fiscal year. To verify which fiscal year the company is in, go to the GL Setup / Options. Click on the Posting tab and check the Current Fiscal Year under the Posting Statistics area.

 

Solution:

The error message is resolved by running the Create New Year function in General Ledger, G/L Periodic Processing.  However, if you have not finished making entries into the old year yet, you can hold off on this procedure until you have completed your GL work.  The error batches can stay unposted in the batch list during this time.  Once you have finished entering all the transactions into the GL for the year, run the Create New Year procedure and then you can post the error batches.  

The alternative would be to run the Create New Year process immediately, and post the error batches.  Make sure the option to Allow Posting to Previous Years (in GL Setup / Options, Posting tab) is turned on and continue your GL work by posting to the prior year.  Posting any entry to the prior year for Income Statement accounts will automatically create a closing entry transferring the amount to retained earnings. 

 

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    ahmad ghubj

    thanks for the article 

    Edited by ahmad ghubj
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