Invoices posted to the wrong General Ledger account.

1. From the Accounts Receivable Reports menu, select Reconciliation, Batch reconciliation to GL.
2. Enter the Accounting dates from and to for the period you are reconciling.
3. Click Conditions, Add, select Transaction type, Equal to, and select Invoice.
   Note: If you use Billing, repeat step 3 and select Issued Invoice.
4. Review the report for any of the following:
   • Accrual Debit Accounts that are not the Accounts Receivable account.
   • Retainage or Accrual Credit accounts that are the Accounts Receivable account.

If either of the above exist, void the affected invoice and make corrections. In some cases, the answer is to keep track of the affected invoices until all invoices are paid in full, retainage is billed in full and no balances are left on the invoice that has incorrect accounts. Using the Bill Retainage Prep reports in Accounts Receivables may help identify which invoices have a current balance for retainage. Journal entries can be made to fix the revenue account (credit account) entries. The Accounts Receivable and Retainage Receivable entries affect adjustments, cash receipts and retainage billed for future entries and so those would have to be fixed via a file fix or keeping track and making journal entries or using other reports to reconcile to the retainage account.

Note: A common reason for incorrect accounts to show up on contract-based invoices is that an incorrect General Ledger account is selected on the Contract Item, Accounts tab. This tab should only be filled in if that item should go to a different Accounts Receivable, Retainage Receivable or Revenue account than what is found in AR Settings, GL Settings, Balance Sheet Accounts for Accounts Receivable and Retainage Receivable accounts and the Revenue tab for the Revenue type accounts. If not using a different account than the default, leave that tab blank on the contract item.

If the contract item is set up with incorrect accounts, then any invoices that went to those accounts will make it seem like Accounts Receivables is out of Balance to General Ledger. A very common reason is putting the retainage account as the accounts receivable account or the revenue account as one of the receivable accounts - both will cause Accounts Receivables to appear out of balance to General Ledger.