Balancing the AP Subledger to GL Control Account
- Be sure there are no unprinted registers. The AP subledger and the associated GL control account do not get updated in the same program. If you have any unprinted registers, the subledger would have been updated but not the AP control account. The registers to check are:
Updates AP Subledger
Updates GL Control Account
AP30 - Post Invoices
AP Audit Report
AP42 - Print Computer Cheques
AP50 - Manual Cheques
Manual Cheque Register
AP80 - Cancel Cheques
Cancelled Cheque Register
- Check that the correct AP control accounts are assigned in AP01 for each bank code. Be sure that the discount account is NOT the same GL account as for AP control (note that this is disallowed in AP01 if creating a new bank or maintaining an existing bank but it could be possible as a result of converted data.)
- Using GL45, check the source of the detail postings to the AP control account. The only expected sources should be from AP (AP Invoice), CC (Computer Cheques) and MC (Manual Cheques). Postings from any other sources would have updated the control account but not the subledger. Note that AP70 includes all posting sources when it is calculating the "GL Balance" figure.
- Important Note - Re: calculation of subledger figure by AP70 and AP83: Each invoice record has an invoice date but also stores the GL posting date of the invoice. When AP70 or AP83 are run "as of" a specific date the program first looks at the Invoice Date and then looks at the GL posting date to qualify if that invoice should be included in the subledger total. For example: An invoice dated Apr29 is posted in a batch with the GL Posting Date = May 10. If you were to run AP70 or AP83 as of Apr30 then that invoice would be qualified based on the invoice date but would be disqualified based on it's GL posting date; it would not be included. It hit the GL in May so it will not be included in the subledger until May.
- Cancelled Invoices: If you are trying to balance as of a period that has already been closed in AP (meaning AP89 has already been run) then cancelled invoices could cause an out of balance. Cancelled invoices are removed from the subledger; they would not be included in the subledger but might be included in the GL. Consider the following scenario:
Invoice posted on Apr 30; GL entry dated Apr30
AP89 has been run to close April; Current month = May
Invoice cancelled on May01: GL entry dated May01
Invoice will not be reported on AP83 run as of Apr30 but it is included in balance of GL account as of Apr30. The subledger will be lower than the GL. Check your AP31 reports for ***Cancelled*** invoices to see if any of them represent the out of balance amount. Also, if you run your reconciliation into the future and the out of balance self corrects then this is likely the reason why.
- If a future invoice is paid prior to its invoice (GL posting) date, an out of balance between the GL and subledger could occur. For example:
Invoice is dated Sep 01; CR to AP control account is booked Sep 01.
Invoice is paid and cheque dated Aug 31; DR to AP control account is booked Aug 31.
When AP70 is run as at Aug 31, the DR to the AP control account for the payment would be picked up on the GL side but the invoice itself would be skipped on an AP70 and/or AP83 run dated Aug 31.
The GL will be lower than the subledger. If you run your reconciliation into the future, the out of balane will self correct.
Note: AP50 disallows a cheque date "less than" the invoice date but in the computer cheque cycle the invoices are already selected for payment via AP40 or AP41 before the cheque date is entered in AP42.
- AP30 allows the operator to post invoices dated any day in the current period to a single GL batch date. If the invoice date is greater than the GL posting date, there could be an out of balance reported by AP70 IF the "as of" date entered in AP70 is less than the invoice date. For example:
Current Period End Date = Oct 31
GL Posting Date for Batch = Oct 10
Invoice Date = Oct 15
If you run AP70 with an "as of" date = Oct 10, then the GL total will include that invoice but the subledger total will not. If you run AP70 with an "as of" date = Oct 15, then that invoice will be included in both the GL and subledger totals.
If AP70 is reporting an out of balance and the entered "as of" date is not the end of the current period open, then re-run the diagnostic as of the period end date; it may self-correct.
Note: The invoice date may not be greater than the AP30 GL posting date if they are in different periods. For example: current period is October and GL posting date for the batch is October. You cannot post an invoice dated in November.