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

Before reconciling AP to GL

Post Entries

Post all entries in both Accounts Payable (Tasks, Post Invoices) and General Ledger (Tasks, Post Entries). See steps to check for unposted entries.

Verify the applications balance

Verify both General Ledger and Accounts Payable are in balance on their own. See steps to reconcile General Ledger and steps to reconcile Accounts Payable.

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 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. Note the total in the Accts Payable Balance As Of [Period End Date] column for each Account Payables 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. Note the total in the Ret Payable Balance As Of [Period End Date] column for each Retainage Payables 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.c and 2.c 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 doesn’t match the balance in General Ledger
     • If there are no differences, GL and AP are in balance
     • If there are differences, repeat the 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’re reconciling (for example: 10/01/24)
   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’re reconciling (for example: 10/31/24)
   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 and Entries by Batch for RP Accts reports. Print both reports for each payable account as follows:
   1. Go to Reports, 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 account used in the condition on the GL Totals by Batch report
   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’re reconciling (for example: 10/01/24)
   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’re reconciling (for example: 10/31/24)
   13. Click OK twice
   14. Click Start to print the report
       Note: To reconcile multiple payables accounts, condition the General Ledger Totals by Batch report for each account number separately. Don’t add any other conditions or ranges and ignore any amounts in the Batch Proof column
3. Compare your General Ledger Totals by Batch report and the Accounts Payable Entries by Batch reports for each account.
   1. Compare each batch until you find a batch with a discrepancy
      • If you find a batch where the debits and/or credits don’t 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 don’t find a batch with a discrepancy, the discrepancy has carried forward from a previous month
   2. Repeat your Month by Month Reconciliation Procedures and Batch by Batch Reconciliation Procedures to identify the month and batch where the discrepancy originates
      

Entry by Entry Reconciliation Procedures

1. When you identify the batch, compare the AP Entries in Detail reports to the GL Entries by Account report to find the discrepant entries
2. Print the Entries by Batch for AP Accts and Entries by Batch for RP Accts reports if the discrepant batch appears on them:
   1. In Accounts Payable, print the Entries in Detail reports as follows:
   2. From the Reports menu, select GL Reconciliation, Entries in Detail for AP Accts (or Entries in Detail for RP Accts)
   3. Select AP Transaction (current) and AP Transaction (history) (if a history file is available), and then click OK
   4. In the Accounts payable account or Retainage payable account box, enter the appropriate payable account
   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’re reconciling (for example: 10/01/24)
   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’re reconciling (for example: 10/31/24)
   13. Click OK, and then click Add
   14. Under Field, select Batch
   15. Under Operator, select Equal to
   16. Under Value, enter the batch number with the discrepancy you found in the Batch by Batch Reconciliation Procedures above
   17. Click OK twice
   18. Click Start to print the report to a file or printer
3. 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’re reconciling (for example: 10/01/24)
   4. In the Accounting Date To box, enter the date of the last day of the month you’re reconciling (for example: 10/31/24)
   5. Click Conditions, and then click Add
   6. Under Field, select Account
   7. Under Operator, select Equal to
   8. Under Value, enter the appropriate payables 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
4. 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