Reconciling Payables Activity

Reconciling Payables Activity

The following reports are used to reconcile your posted invoices and payments to your Accounts Payable Trial Balance to ensure that your Trial Balance accurately reflects your accounts payable liability:

• Posted Invoice Register

• Posted Payment Register

• Accounts Payable Trial Balance (last period and current period)

Note: Before you run your reports, transfer the journal entries to General Ledger for all transactions in the period that you are reconciling.

Note: When reviewing your Accounts Payable Trial Balance report, you may notice that the remaining amount for a given invoice is less than you expect or even negative. This may be caused by recording invoice payments in a GL period that precedes the GL period used to record some or all of your invoice distributions.

For example: You enter an invoice with one distribution of Rs.2000 that uses a GL date of 04-JAN-2013. You pay the full invoice, and the payment date is 20-DEC-2012. If you submit the Accounts Payable Trial Balance report as of 31-DEC-2012, then the invoice will correctly show an amount remaining of <-Rs.2000>. In the reports parameter, if you do not enter an as of date, then the report shows all paid and unpaid invoices from the start date.

Payable allows the payment date to precede the invoice GL date to support certain accounting methods (e.g. recording prepaid items).

To reconcile your Accounts Payable Trial Balance for a given period:

• Add the current period's posted invoices (total invoice amount from the Posted Invoice Register) and subtract the current period's posted payments (total cash plus discounts taken from the Posted Payments Register) from the prior period's Accounts Payable Trial Balance. This amount should equal the balance for the current period's Accounts Payable Trial Balance.

For example, you are closing your accounting period for April and you have just posted your final invoice and payment batches to your general ledger system. To reconcile your accounts payable activity for April, make the following calculation:

March Accounts Payable Trial Balance

+ April Posted Invoice Register

- April Posted Payment Register

= April Accounts Payable Trial Balance

Reconciling Payables Activity to General Ledger:

Use the Accounts Payable Trial Balance report to reconcile your accounts payable liability in your general ledger. Compare the Accounts Payable Trial Balance to the accounts payable balance in your general ledger system for a given period. Because the Trial Balance presents the outstanding accounts payable liability information, it is only valid for an accrual ledger.