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Closing the Period and Year in Accounts Receivable

Lesson 8 ­ Reconciling to the General Ledger

Prior to closing each period, it is recommended that you balance the Accounts Receivable module to the corresponding accounts in the General Ledger. Use the Trial Balance in Accounts Receivable and General Ledger to accomplish this. Information appears on the Trial Balance report based on the transaction's posting date. For example, if an invoice was dated 04/20/04 and was posted on 05/01/04, the invoice would not appear on the Trial Balance until 05/01/04. Do not use the Aged Invoice Report to reconcile to the General Ledger. This report uses the invoice date to select items. If a transaction is dated and posted on different dates, the report may not balance to the General Ledger. 1. Let's take a look at the Trial Balance Report. Select Reports|Trial Balance Report from the Accounts Receivable Module Menus Toolbar.

The Trial Balance report summarizes beginning and ending balances, as well as costs for the current period. It produces a complete recap of the Accounts Receivable invoices, receipts, adjustments, and other activities that affect Accounts Receivable balances. Use this report to assist in reconciling Accounts Receivable to the Accounts Receivable account in the General Ledger Trial Balance. You can select a range of customer numbers to include in the report. In addition, you can include all invoices on file, or select either open or paid invoices. You can print the transaction information in detail form, or summarized by invoice. · · · Print Trial Balance As Of - Only transactions posted on or before this date will be included on the report. This should be the last day of the period when reconciling to the General Ledger. Invoices To Print - You have a choice of including Open, Paid, or All invoices as of the date specified. When reconciling to the General Ledger, only include open invoices. Print Transaction Detail - If selected, additional information such as checks and adjustments are included on the report also. This can be used when comparing transactions that have posted to the General Ledger. This setting does not affect the balance displayed in the Invoice Balance column. Customer Number - You may select to include all customers or a specified range. When divisions are used, a subtotal for each division will appear on the report. When reconciling to the General Ledger, all customers should be included. 2. Click to print and review the Trial Balance for all customers.

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3. Compare the last page of your report with the following figure:

The Report Totals reflect the balances for the entire company.

Information on the report includes such items as the customer, invoice date, balance due, and posting date. Use the report total for the Invoice Balance column to reconcile to the General Ledger. Use the division subtotals to reconcile to the General Ledger if your divisions post to different Accounts Receivable accounts.

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MAS 90 and MAS 200

Closing the Period and Year in Accounts Receivable

4. Now let's take a look at the Trial Balance in General Ledger. Select Reports|Trial Balance from the General Ledger Module Menus Toolbar.

The Trial Balance report in General Ledger summarizes account activity for a specified accounting period. The beginning balance, summarized activity in the form of a debit or credit balance, and an ending balance are listed for every account in the chart of accounts. Use this report to check the balances of all accounts within the General Ledger. The debit and credit amounts on the Report Total line should balance. You can select a range of account numbers to include in the report. You can print all accounts including accounts with a zero balance, or exclude all zero balance accounts. · · · 5. Ending Balance Only ­ To print a listing of debit and credit ending balances for each account. Beginning Bal./Activity/Ending Bal. ­ To print a listing of beginning balances, debit and credit activity for the accounting period selected, and ending balances for each account. Beginning Balance Only ­ To print a listing of debit and credit beginning balances for each account for the fiscal year entered.

Enter 110-00-000 for the Starting and Ending Accounts Number fields, and accept other defaults.

6.

Click account.

to print and review the Trial Balance for the Accounts Receivable

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7. Compare your report with the following figure:

The A/R Trial Balance Invoice Balance and the G/L Trial Balance amount should match.

Use the report total for the Invoice Balance column in the Accounts Receivable Trial Balance to reconcile to the General Ledger. Use the division subtotals in the Accounts Receivable Trial Balance to reconcile to the General Ledger if your divisions post to different Accounts Receivable accounts.

Lesson 9 ­ Correcting Discrepancies in Reconciling to the General Ledger

As with any reconciliation, you may encounter situations where the Trial Balance report in Accounts Receivable does not balance to the corresponding account in the General Ledger. To assist you in determining what has caused the balances to be different you need to verify that the Sales Journal, Cash Receipts Journal, and Finance Charge Journal have been updated. Verify the Daily Transaction Register has been updated to the General Ledger, and print the General Ledger Detail Report in the General Ledger for the current period and only include the Accounts Receivable account. When balancing Accounts Receivable, verify no entries were posted to the General Ledger account that did not originate from Accounts Receivable or Sales Order. If a transaction was posted that did not come from Accounts Receivable or Sales Order, reverse the entry in the appropriate module and re-enter the transaction in the appropriate module, if necessary. Use original hard copies of the registers, journals, and the Daily Transaction Register to verify entries are not missing from the General Ledger. If a transaction does not appear in the General Ledger, verify the postings were to the correct accounts and to the correct dates. Create a journal entry in the General Ledger for any transactions that do not appear. Make sure you use the correct posting date, amount, accounts, etc. When detailed transaction history has been retained, the drill-down feature is helpful also in locating discrepancies and errors. Refer to the Technical Reference and Support Guide (TRSG) for detail information on out of balance situations in Accounts Receivable.

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