Solving a Discrepancy between the A/P & G/L
Once the steps on balancing the A/P sub-ledger and the General
Ledger Accounts Payable control account are completed, as discussed
in Aged A/P Summary, if a discrepancy is
identified use the software to determine where the discrepancy
occurred by following the steps outlined below:
Note: If it is not known when the Accounts Payable sub-ledger
last agreed to the Accounts Payable account in the General Ledger,
or if they have never agreed, then the program does not have a
valid starting date and will not be successful in searching for the
discrepancy.
Refer to How to Solve Manually below.
If data has been compressed or purged in the Accounts Payable
sub-ledger or the A/P Control Account has been compressed in the
General Ledger since the date that last balanced, then the detail
necessary for the software to do the comparison will be missing.
This means it will not likely be able to identify the
discrepancy.
Refer to How to Solve Manually below.
A journal entry in the General Ledger will be needed to agree
the Accounts Payable account in the G/L to the Aged A/P Report
total.
Discuss the issue with your accountant referencing the report, and
explain that there is a discrepancy. Request a corrective journal
entry to resolve this problem.
The accountant should provide the account numbers and amounts
appropriate to your firm.
If your firm uses more than one currency code when entering Accounts Payable invoices, then it is probable that there is more than one General Ledger account for Accounts Payable invoices (each currency can post to a separate G/L Account), as setup in Default Accounts.
If this is the case uncheck this box and select the currency to run this option and the remaining Steps for one currency code at a time for the corresponding G/L Control Accounts.
This approach may isolate the discrepancy faster, if you are able to determine which currency is out of balance.
Resulting Paging Screen:
Make a note of each date, account and amounts. This information will be needed for a more detailed search with the next steps.
Note: When specifying the amount to search, this may only be
successful if the discrepancy is due to a single invoice.
If the discrepancy is made up of several invoices, all transactions
for that day should be reviewed.
Note: When specifying the amount to search, this may only be
successful if the discrepancy is due to a single payment.
If the discrepancy is made up of several payments, all transactions
for that day should be reviewed.
Finding the Discrepancy:
Compare each G/L entry found
in this Step 6, with the information found in the A/P in Steps 4
and 5 to manually determine the discrepancy.
Once the discrepancy is identified, contact Texada Support for instructions on how to correct this discrepancy.
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