Problem: Vendor stated we owed last 2 months invoices. I looked in the system and showed those 2 invoices were paid and cleared the bank. I then went back and looked at the entire year and discovered the following:
The February 2012 invoice was actually a voided invoice from May 2011 AND the incorrect payment ID was used so no cash was affected. Well, since the expense was debited when the invoice was voided the GM didn't question the P&L since it "appeared" to by OK.
Then the March 2012 invoice was never entered or accrued for so the GM pointed it out so the accounting manager could pay March and April together. The accounting manager paid the April invoice but instead of entering and paying the March invoice, he reversed a 2011 prepaid entry that was sitting on the books in April 2012. So once again, the expense was debited when the prepaid entry was reversed and the general manager did not question the P&L since it "appeared" to by OK.
Therefore, I need to pay the vendor for the February and March invoices. What is the correct way to fix this issue since the expense accounts have already been recognized for these months in 2012?