The item receipt was included in your year-end accounts payable figure, but the bill had not yet been entered. You can confirm this by noting that your Unpaid bills detail of that date is less than the a/p amount on your balance sheet.

You need to enter the bill, but leave it dated in 2007, or it will affect previous year numbers.

Run some reports to confirm this for yourself.

Does this make sense?

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Zahid H. Lilani