A/R to G/L Discrepancies

The steps to balance the A/R sub-ledger and the G/L Accounts Receivable control account are discussed in Aged A/R Summary.
If a discrepancy is discovered, this utility can be used to determine the date that the discrepancy occurred.

Follow the steps outlined below:

Step 1

Determine the date when the Accounts Receivable sub-ledger last agreed to the Accounts Receivable account in the General Ledger.
The search for the discrepancy will begin at the last known point where the sub-ledger was in balance.

Note: If it is not known when the Accounts Receivable sub-ledger last agreed to the Accounts Receivable 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 the Accounts Receivable sub-ledger has been compressed or purged, or the A/R Account in the General Ledger has been compressed since the date when they were last in balance, then details necessary for the program to do the comparison will be missing. This means the program will not likely be able to find the discrepancy.
Refer to How to Solve Manually.

How to Solve Manually:

When the data is not complete enough to determine the exact discrepancy transactions, a G/L journal adjustment may be required to balance the ledgers.

Confirm each invoice amount on the current detailed Aged A/R Report for each customer.
After you have verified that the Aged A/R Report is correct, then you may assume that the A/R Sub-ledger has the correct total.

A journal entry in the General Ledger will be needed to agree the Accounts Receivable account in the G/L to the Aged A/R Report total.

Using this discrepancy report, your accountant needs to advise you on a corrective journal entry to resolve this problem.
The accountant should provide the account numbers and amounts appropriate to your firm.

Step 2

If there are no compression issues with the data, determine the date when the A/R Sub-ledger was last known to agree to the A/R Account in the General Ledger.
This would become the start date for this utility to compare the transactions in the A/R and the G/L as follows:

FROM DATE

Enter the date to begin the search for the discrepancy.
This will be the date plus one day when the Aged A/R Report last agreed to the G/L account for Accounts Receivable.

TO DATE

Enter the ending date to end the search. This is usually today's date.

CURRENCY

Check this box if all currencies post to a single G/L Control Account for Accounts Receivable, as defined in Default Accounts.

If your firm uses more than one currency code when entering Accounts Receivable invoices, then it is also possible that more than one General Ledger account is used for Accounts Receivable invoices where each currency can post to a separate G/L Account as setup in Default Accounts.
Uncheck this box if your firm uses more than one currency code with more than one G/L Accounts Receivable control account, and select the currency.

CURRENCY CODE

When there are multiple A/R Control Accounts, run this option and the remaining Steps for one currency code at a time for the corresponding G/L Account.
e.g. Currency C - posts to G/L Acct# 1200 Accounts Receivable Canadian
Currency U - posts to G/L Acct# 1201 Accounts Receivable U.S.

This approach may isolate the discrepancy faster, if you are able to determine which currency is out of balance.

DIVISION, "ALL" OR "SEL"

This filter only applies if your firm utilizes the Activate G/L Posting By Division feature as set in Support Application Parameters so that the "A/R Control Account" posting to the General Ledger reflects the specific Division assigned.
This filter does not apply if the divisional posting feature is not activated as the postings to the A/R Control Account always post to the Head Office (blank) division, and so the Div column is disabled on the output.

• Type ALL to include all divisions in the job.
• To run the compare for a single division, leave this field blank for the Head Office Division, or enter a specific division code, or select a division from the drop-down list.
• Type SEL to select several specific divisions or divisions by accounting region to include, as outlined in Division Select By Region.

Finished?

Click ACCEPT to proceed with the compare process or cancel to ABORT.
The progress of the utility is reported on the message line at the bottom left of the screen.

Step 3

After Step 2 is completed, the software automatically links to the Review A/R To G/L Discrepancy screen.
After running the initial compare, this screen can be re-accessed without re-running the utility by clicking on the PREV. RESULTS button.

The prompts are:

ACCOUNT #

Enter the G/L Account for the Accounts Receivable control account which corresponds to a specific currency, or select it from the G/L Account Search window, or leave this field blank and click the DETAILS button to view discrepancies for all Accounts Receivable accounts defined by currency in Default Accounts.

DATE

Leave this field blank for all entries which do not agree, or type in a specific date to view the discrepancy as of that date.

Resulting Discrepancy Amounts:

ACCOUNT #

This is the G/L Accounts Receivable account number used to compare to the A/R sub-ledger.

DATE

Records will only be displayed for dates when the A/R sub ledger did not agree to the G/L Accounts Receivable Account.

A/R AMOUNT

This is the sum of all entries to the Customers' accounts for that date.

G/L AMOUNT

This is the sum of all postings to the G/L account for that date.

DISCREPANCY

This is the net difference between the A/R Sub-ledger and the G/L Accounts Receivable control account for that date.

Note the dates, accounts and amounts. This information will be needed for a more detailed search with the next steps.

Step 4

Use the Find A/R Invoices/Payments utility to view the detailed activity for the Accounts Receivable for the selected date.

Note the matching A/R records, since it will be needed to compare against the information found in the next step.

Step 5

Use G/L Find to view the detailed activity for the selected General Ledger A/R Control Account postings on a selected date.

Finding the Discrepancy:
Compare each G/L entry found in this Step 5, with the information found in the A/R in Step 4 to manually determine the discrepancy.

Once the discrepancy is identified, contact Texada Support for instructions on how to correct this discrepancy.

ACTIONS:
Additional actions provided by buttons on the A/R to G/L Discrepancy utility include:

• View Discrepancy List from Last Run:
  Click the PREV. RESULTS button to review the A/R and G/L dollar values by date identified the last time the utility was run.

• View the G/L Discrepancies:
  Click the VIEW button to review the G/L transaction discrepancies as outlined in the G/L Find utility.