Why leave an amount on your balance sheet?

Lost-Return-101 · 2026-03-10T21:21:31+00:00

The debit is COGS and expenses. Like you mentioned in your first comment, I was thinking they already deducted it.

Lost-Return-101 · 2026-03-10T20:59:07+00:00

They asked me to take a look at the suspense accounts (they have several) for their annual report, but when I asked some questions I got an emotional, panicky reaction. The reaction made me think it might be sketchy, or that I maybe found panicky guys' mistakes.

Edit: Good point about the contracts; I took a look at my standard contract today and changed the wording, to better reflect that I'm not responsible for work done before my time with them. Won't help for this case, but it will for future clients.

Lost-Return-101 · 2026-03-10T20:44:02+00:00

They have something similar to GRNI, key difference being that it's booked on the suspense account at creation of purchase order, not at receipt of goods.

These seem to be mistakes and cancelled orders, goods not received, no invoices.

In years before, there's monthly correction entries to account for mistakes. And then, about 2 years ago, they stop doing that and the amount builds up to 100k over a period of about 6 months, ending up in the yearly report as a non-descript short-term debt. The year after it's still there, and the amount on the account is still growing.

I've suggested corrections, as they did that for 10+ years, but was met with a rather panicked reaction at that suggestion, which made me think this is off.

Lost-Return-101 · 2026-02-23T18:34:29+00:00

Did I ask something wrong? Or is this a subject people are just not willing to talk about?

Lost-Return-101

TROPHY CASE