13th Month’s Myth

Many accounting software prompt you to create a so called 13th Month when your accounting entries can only be entered into one of the 12 months.  So, what is the 13th month?  If a business needs to do a monthly closing and the journal entries relating to the closed period is entered after the closed period, then that entries can be put under the 13th month period.  The other reason is that the 13th month is used exclusively for audit adjustments.  We will retain the benefit of having a virtual 13th month period but not the burden of creating one.  The answer is to create a system default Journal Entry Template called AJ as it stands for adjusting journal entries.  We will change the balance sheet, income statement and trial balances to reflect the AJ entries by presenting it like a regular audit working paper format.