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How do I reconcile Accounts Payable to General Ledger using reports?

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Summary

The information below provides the steps to take to do a reconciliation between Accounts Payable and General Ledger

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Note:


Overall Reconciliation Procedures

  1. Print the Period End Report for AP Accts report as follows:
    1. From the Accounts Payable Reports menu, select GL Reconciliation, Period End Report for AP Accts
    2. In the Period end cut-off date box, enter the period end date for the period that you want to reconcile
    3. Click Ranges, make a note of all the account numbers
    4. Click Cancel
    5. Click Start to print the report to a file or printer
    6. Make a note of the total in the Accts Payable Balance As Of [Period End Date] column for each accounts payable account
  2. If you use retainage, print the Period End Report for RP Accts report as follows:
    1. From the Accounts Payable Reports menu, select GL Reconciliation, Period End Report for RP Accts
    2. In the Period end cut-off date box, enter the period end date for the period you want to reconcile
    3. Click Ranges, make a note of all the account numbers
    4. Click Cancel
    5. Click Start to print the report to a file or printer
    6. Make a note of the total in the Ret Payable Balance As Of [Period End Date] column for each retainage payable account
  3. Print your Year-to-date Ledger as follows:
    1. From the General Ledger Reports menu, select Year-to-date Ledger
    2. Select the Modify date range check box
    3. Enter the beginning and ending date of your period in the Start date and End date boxes, respectively
    4. Click Ranges, select the accounts that you noted in steps 1.3 and 2.3 above
    5. Click OK
    6. Click Start to print the report to a file or printer
    7. Make a note of the ending balances for each account
  4. Compare the payable account totals from Accounts Payable to the ending balances for each payable account
    • Make a note of any accounts where the total in Accounts Payable does not match the balance in General Ledger
  • If there are no differences, GL and AP are in balance
  • If there are differences, follow the above steps going back one month at a time until you find the last month you are in balance

Batch by Batch Reconciliation Procedures:

  1. In General Ledger, print the Totals by Batch report as follows:
    1. From the Reports menu, select Entries, Totals by Batch
    2. Select GL Transaction (current) and GL Transaction (history) (if a history file is available), and then click OK
    3. Click Conditions
    4. Under Field, select Accounting date
    5. Under Operator, select Greater or equal to
    6. Under Value, enter the first day of the month you are reconciling (for example: 10/01/23)
    7. Click OK, and then click Add
    8. Under Field, select Accounting date
    9. Under Operator, select Less or equal to
    10. Under Value, enter the last day of the month you are reconciling (for example: 10/31/23)
    11. Click OK, and then click Add
    12. Under Field, select Account
    13. Under Operator, select Equal to
    14. Under Value, enter one of the payable accounts that you want to investigate further
    15. Click OK twice
    16. Click Start to print the report to a printer
  2. In Accounts Payable, print the Entries by Batch for AP Accts report and the Entries by Batch for RP Accts report. Print both reports for each payable account as follows:
    1. From the Reports menu, select GL Reconciliation, Entries by Batch for AP Accts (or Entries by Batch for RP Accts)
    2. Select AP Transaction (current) and AP Transaction (history) (if the history file is available)
    3. Click OK
    4. In the Accounts payable account (or Retainage payable account) box, enter the same account used in the condition on the General Ledger Totals by Batch report (above)
      Tip: If your Accounts Payable account is too long to fit in this box, refer to The Accounts Payable Entries by Batch for AP Accts report only allows 10 digits in the Accounts Payable account box for steps to modify the report to accommodate your account number
    5. Click Conditions, and then click Add
    6. Under Field, select Accounting date
    7. Under Operator, select Greater or equal to
    8. Under Value, enter the first day of the month you are reconciling (for example: 10/01/23)
    9. Click OK, and then click Add
    10. Under Field, select Accounting date
    11. Under Operator, select Less or equal to
    12. Under Value, enter the last day of the month you are reconciling (for example: 10/31/23)
    13. Click OK twice
    14. Click Start to print the report
      Note: To reconcile multiple accounts payable accounts or retainage payable accounts, condition and print the General Ledger Totals by Batch report for each account number separately. Do not add any other conditions or ranges and ignore any amounts in the Batch Proof column
  1. Compare your General Ledger Totals by Batch report and the Accounts Payable Entries by Batch reports for each account.
    • Compare each batch until you find a batch with a discrepancy
      • If you find a batch where the debits and/or credits do not match
        • Make note of the batch and the difference
        • Continue with the Entry by Entry Reconciliation Procedures below to find out which entry caused the discrepancy
  • If you do not find a batch with a discrepancy, the discrepancy has carried forward from a previous month
  • Repeat your Month by Month Reconciliation Procedures and Batch by Batch Reconciliation Procedures to identify the month and batch where the discrepancy originates
  • Tip: If the invoice and manual check have an accounting date within the same period
    • The Record Manual Checks task creates batches in Accounts Payable, but does not send a batch to the accounts payable account (or retainage account) in General Ledger

Entry by Entry Reconciliation Procedures:

When you identify the batch with the discrepancy

  • Compare the Accounts Payable Entries in Detail reports to the General Ledger Entries by Account report to find the discrepant entries
  • If the discrepant batch appears on both the Entries by Batch for AP Accts report and the Entries by Batch for RP Accts report
    • Print both the Entries in Detail for AP Accts and the Entries in Detail for RP Accts reports as follows:
  1. In Accounts Payable, print the Entries in Detail reports as follows:
    1. From the Reports menu, select GL Reconciliation, Entries in Detail for AP Accts (or Entries in Detail for RP Accts)
    2. Select AP Transaction (current) and AP Transaction (history) (if a history file is available), and then click OK
    3. In the Accounts payable account or Retainage payable account box, enter the appropriate payable account
    4. Click Conditions, and then click Add
    5. Under Field, select Accounting date
    6. Under Operator, select Greater or equal to
    7. Under Value, enter the first day of the month you are reconciling (for example: 10/01/23)
    8. Click OK, and then click Add
    9. Under Field, select Accounting date
    10. Under Operator, select Less or equal to
    11. Under Value, enter the last day of the month you are reconciling (for example: 10/31/23)
    12. Click OK, and then click Add
    13. Under Field, select Batch
    14. Under Operator, select Equal to
    15. Under Value, enter the batch number with the discrepancy you found in the Batch by Batch Reconciliation Procedures above
    16. Click OK twice
    17. Click Start to print the report to a file or printer
  1. In General Ledger, print the Entries by Account report as follows:
    1. From the Reports menu, select Entries, Entries by Account
    2. Select GL Transaction (current) and GL Transaction (history) (if a history file is available), and then click OK
    3. In the Accounting Date From box, enter the date of the first day of the month you are reconciling (for example: 10/01/23)
    4. In the Accounting Date To box, enter the date of the last day of the month you are reconciling (for example: 10/31/23)
    5. Click Conditions, and then click Add
    6. Under Field, select Account
    7. Under Operator, select Equal to
    8. Under Value, enter the appropriate payable account
    9. Click OK, and then click Add
    10. Under Field, select Batch
    11. Under Operator, select Equal to
    12. Under Value, enter the batch number with the discrepancy you found in the Batch by Batch Reconciliation Procedures above
    13. Click OK twice
    14. Click Start to print the report to a file or printer
  2. Compare the Accounts Payable Entries in Detail reports and the General Ledger Entries by Account report for each entry until you find a discrepancy
    • Determine the correction that you need and use Record Entries in General Ledger to make the appropriate correcting entries
    • Contact your Sage 300 Construction and Real Estate Consultant if you require assistance


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