Balancing the AR Subledger to the GL Control Account

  • Payments are updated to the AR subledger by AR30 and the associated GL control account is updated by AR31. If you have any unprinted cash receipts registers, the subledger would have been updated but not the GL control account. This creates a temporary out of balance.

  • Check that the correct GL control accounts are set up in AR02 for each bank code.

  • IN08 allows the user to specify an override GL account for AR if the payment type is other than Account (ie, Cash, Check, etc). The AR control account should NOT be specified as the override account. For example, an invoice paid by Cash will not update the customer's account (subledger) so it should also not update the AR control account.

  • Check that the GL account assigned to supplementary charges in IN01 is not the AR control account. Otherwise the transaction amount will "wash" through the GL control account but will still be included on the subledger side of things.

  • Using GL45, check the source of the detail postings to the AR control account. The only expected sources should be from IN (Sales Invoices) and AR (Cash Receipts). Postings from any other sources would have updated the control account but not the subledger. Note: AR70 only picks up IN and AR source postings when calculating the "GL Total" figure. If there are any journal entries to the AR control account then it would be more appropriate to use GL45 to obtain the GL total and compare that to the subledger total provided by AR70 or AR84.

  • If there is an out of balance reported by AR70, check the Daily Totals section of that screen display. It balances cash receipts in the subledger to cash receipts in the GL and invoices in the subledger to invoices in the GL by day. If an out of balance is detected, the date is marked with an asterisk (*). Registers for that date should be pulled and reviewed.

  • If a credit belonging to the 'next' period is applied in the 'current' period, there will be an out of balance when balancing as of the current period. I.E.: Current period = September. Credit is posted October 1. Then it is applied to an invoice in an AR30 adjustment batch dated September 30. When balancing as of September, the invoice would be considered fully paid in the subledger. The GL would reflect the original invoice DR and both sides of the adjustment but the credit posting would not be reflected in the GL until October. An out of balance will occur. This condition is reported by AR70 in the section headed "Inv Date > Pay Date".

  • If you delete paid off invoices (AR87) and then try to back date the reconciliation, the subledger will not be able to be reconstructed properly.

  • Check that the Discount GL account specified in AR02 is not the AR Control account.

  • Special Note re. AR83/AR84: You are not allowed to choose Restriction 3 - Skip 0 Balance Customers if you are back dating these reports. This restriction uses the memo balance in SUCU (Customer Master File) and it could be that the customer's overall balance = 0 today but not as of the report "as of" date.

Balancing by Bank

  • If a customer's bank assignment is changed in SU13 after invoices have been posted, those invoices will be reported per their current SU13 bank assignment yet their AR control account would have been debited per their original bank assignment. IE: customer assigned to Bank 1 and invoice posted; then their SU13 bank assignment is changed to Bank 2. AR83/AR84 will report that invoice against Bank 2 in the subledger but AR was debited per Bank 1 in the GL. Note that the overall company totals would balance but there will be an out of balance within the banks.

  • You will not be able to balance the sub-ledger to the GL by bank if the Customer's bank is different from their Paying Office's bank and the AR control accounts assigned in AR02 are not the same. For example: in SU13 if the Customer is assigned to Bank 1 but their Paying Office is assigned to Bank 2, the invoice debits the AR control account (in AR02) per Bank 1 but is reported on Customer Aging (AR84) and Overdue Analysis (AR83) reports per Bank 2 (because the invoice is actually posted to the Paying Office customer's account). In this example, if those banks have a different AR control account assigned in AR02, then the Aging report printed for Bank 2 only will not balance to the total for the AR control for Bank 2 in the GL.

  • For the General Ledger total in AR70, if multiple Bank records (in AR02) point to the same AR control account, only the first Bank will be presented on the screen. For example: if Bank 1 and Bank 2 point to the same AR control account, only Bank 1 will be listed by AR70; however the Customer Aging Reports (AR83/AR84) printed for Bank 2 will list outstanding invoices.

 
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