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Reconcile Accounts Receivable sales to the General Ledger revenue account

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Summary

How to reconcile sales from Account Receivable to the revenue account in General Ledger for Sage 300 CRE.

Description

Cause

Resolution

CAUTION:

Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.

Comparing the report

  1. Download the AR Sales Summary report and save it as a Source type: TS Report Design when prompted.
  2. Enter the revenue account you’re reconciling with the General Ledger in the Revenue Account prompt. The From Date and To Date prompts determine the range of accounting dates included in the report.
  3. Print the report with only one accounting period or month at a time.
  4. Compare the total amount with the General Ledger Entries by Account report (Reports, Entries, Entries by Account).
  5. Click Ranges and select the revenue account on the Sales Summary Report. Enter the same accounting date range for both reports. 
  6. Compare the two reports.

Possible reasons for the variance

  • Verify posted entries in Billing, Accounts Receivable, and General Ledger by reviewing the posting journals 
  • Transactions exist in Accounts Receivable without General Ledger account numbers
  • Transactions occur with both debit and credit applied to the same account number

    NOTE:

    This results in a zero net effect to General Ledger, but affects the revenue totals in Accounts Receivable

  • Missing transactions due to a partial restore from the backup

Tracking revenue

EXAMPLE:

Invoice issued for $10,000.00 with $1,000 retainage held. The full $10,000.00 posts to revenue at the time of billing. 

Accrual accounting recognizes revenue as the full gross amount of the invoice when you originally issue it.

Retainage billed doesn't affect revenue accounts. The calculations include it in the original invoice revenue. The entry just reclassifies the retainage from the retainage receivable account to the regular receivable account. If you enter retainage write-offs to the revenue account, the entries affect the revenue reports, because you're writing off part of the retainage balance.

Taxes don't affect revenue. They post to receivables and tax liability accounts.

Sales reports only reflect the revenue from the original invoice, such as the $10,000.00 in the example.