Problem:

A/P or A/R Aging Doesn't Tie out to the General Ledger

Resolution:

The A/R Aging should be used to reconcile the A/R Account. The A/P Aging should be used to reconcile the A/P Account.  Both reports should tie to the corresponding General Ledger account, making sure that the general ledger is fully posted for the period you are trying to reconcile. Don't forget to check for transactions that are on hold - these will appear on the Aging but will not be included in general ledger balances.

Any discrepancies you find between the A/R and A/P reports and the ledger accounts should be emailed to support@evosus.com with the specific transactions noted so that they can be reviewed.  Support will be happy to investigate specific transactions that are causing the reports to be out of balance but cannot balance the reports for you.

The process by which we would attempt to locate a discrepancy in the AR or AP aging reports versus the General Ledger is:

  1. Run a General Ledger for AR or AP account and the aging report for the last month that you balanced.  (The AR aging report should include RGA’s when balancing).  Run the General ledger and aging report for the next month and compare balances.
  2. Keep running the two reports until you find the month of the discrepancy.  Hint: Search for any one transaction that matches the discrepancy amount by using the binoculars in the report to type in the dollar amount and search.
  3. If you cannot find any one transaction that matches, you should continue with the following procedure.
    • Run the General ledger and the Aging by day by day beginning with the first day of the month that you know the discrepancy occurred in. 
    • When you locate the day the discrepancy occurred in, you then review transactions posted to A/R on that day.
      • Scrutinize the “apply dates” of payments recorded in accordance with:
      • Actual payment date 
      • Transaction date of the trx the payment was applied to.  Specifically, you are looking for instances where someone has, perhaps, invoiced a sales order with a deposit and the invoice date is prior to the deposit date.
      • Deposit that is converts to account credit, but someone invoices and applies the credit to the invoice at a date prior to the credit memo date.
      • Check for transactions that would post to the ledger but not appear on the aging reports.  Check for journal entries posted to the AP or AR accounts; these will not show up in the aging reports.  If you don’t find any journal entries, look for other transactions that have posted to the general ledger but you know will not show up on the aging:
        • Accounts Receivable: A/P Invoices, Bank Deposits, Debit Memos, Stock Adjustments, etc.
        • Accounts Payable: Bank Deposits, Stock Adjustments, A/R Statement Charges, A/R Credit Memos, etc.

Tips for Balancing the AR and AP:

  1. If you have never balanced the AR or AP aging to the general ledger, please confirm that your initial Beginning Balance entries on the Product Setup Tool (PST) match the Trial Balance figures entered at go-live.  If these DO NOT match, you should not go any further in the reconciliation until they do.
  2. When attempting to balance the AR and AP aging to the General Ledger, be sure to review all transactions currently showing in the Pending Held Posting Transactions screen. (Admin/Accounting/Accounting Desk/Pending Held Posting Transactions).  If you have AR invoices or AP invoices showing on this list, they have NOT posted to the general ledger but will show on the aging reports.  Until you resolve the reasons for why they are hold, you cannot balance either account.