At the end of each month, the A/R Module should be balanced.  To Balance the A/R Module, follow the document “A/R Month End Balancing, Procedures and Reports”.  One of the reports printed during these procedures is an A/R Aged Trial Balance (AR ATB).  The total of this report should equal the G/L account for Accounts Receivable.  

In the G/L Module one of the monthly reports is the G/L trial balance.  When this report is printed, the ending balance for the Accounts Receivable-Trade account should equal the ending balance on the A/R ATB report.   See G/L documents titled “G/L Month End Procedures” for additional information.

• For Example: When the Accounts Receivable module was balanced at the end of August 20xx an A/R Aged Trial balance was printed and the Cutoff Grand Total was $2,205,347.17.  In the General Ledger Module after everything was posted for August 20xx, and a G/L Trial Balance was printed.  If the A/R General Ledger # is, for example, 105-00-01, its August Ending balance should also be $2,205,347.17. 

This document explains what to do if the A/R ATB and the G/L A/R Trade account do not balance.

For this document example the G/L account # for A/R is 105-00-01 and August 20xx is being balanced.  There are 4 steps to follow:

1.      Check to see if in balance at the end of the previous month. 

2.      Verify the change from manual journal entries or non A/R Interface entries.

3.      Verify the change to receivables from A/R Interface.

4.      Ending balance current month

STEP 1:

Verify the AR ATB balanced with the A/R Trade account at the end of the previous month. 

• In this example, did the A/R ATB for the end of July 20xx equal the G/L account #105-00-01 for the end of July 20xx?  Did the two reports balance at the end of June 20xx?  You need to go back to the month where they last balanced and move forward balancing each month as you go.

STEP 2:

Verify the Change from manual journal entries or non A/R Interface entries.

Confirm the G/L account for A/R Trade Receivable wasn’t used in Sales or Cash Entry & Editing or in the A/P module:    The most common reason the AR G/L account doesn’t match the AR Aged Trial Balance is because someone used the A/R Trade Receivable G/L account while in Sales Entry and Editing (Task 1 in AR) or Cash Receipts Entry & Editing (Task 2) or used it as an account number while entering vouchers in A/P. 

• Sales Distribution by Account Number, by Invoice Date (SDBADI). 
  • Sales Distribution (Task 11)
    • In A/R (Module 2)

• Print this report for the month of balancing for the A/R account #.  For this example August 20xx for the A/R G/L account (per the example: 105-00-01).  This report should be zero.   If not, make a manual journal entry to remove the amount from the AR Trade Receivable account into the correct/appropriate G/L account.

• In A/R (Module 2)
  • Cash/Receipts History (Task 20)
    • Print this report for A/RG/L account # and the month balancing.  Per this example: 105-00-01 for August 20xx.  This report should be zero.   If not, make a manual journal entry to remove the amount from the AR Trade Receivable account into the correct/appropriate G/L account.

• In A/P (Module 3)
  • A/P Expense Distribution (Task 11)
    • Print this for the month of balancing.  For this example August 20xx, all vendors, using the A/R G/L account (i.e.105-00-01), ALL to everything else.  This report should be zero.  .  If there is something on the report it will list the voucher/vendor the A/R account was used on.  If this is the case, make a manual journal entry to take the amount out of the A/R Trade account into the correct/appropriate G/L account

• The Manual Journal entries should have a balance of zero. If there are manual entries it means someone made an adjustment in the General Ledger, but these changes were NOT accounted for in the A/R module, therefore the A/R Aged Trial Balance was not affected.   Go into G/L (Module 4)
  • YTD Master (Task 20)
    • Print for transaction types, M-manual and R-recurring.  This report should be zero.
      • Please enter – starting Division #: ALL
      • Please enter – starting transactions #: ALL
      • Please enter – starting batch number: ALL
      • Please enter transaction sources: ALL
      • Please enter transaction types: M,R
      • Please enter – starting amount: ALL
      • Print report by: 2) G/L Account Number / TRX Date
      • Please enter – starting G/L Account Number: 1050001 (per this example)
      • Please enter – ending G/L Account Number: 1050001 (per this example)
      • Please enter – starting TRX Date: 0801xx (per this example)
      • Please enter – ending TRX Date: 0831xx (per this example)
      • Suppress detail records? NO

STEP 3:

Verify the change to receivables from A/R Interface is correct.

• In the A/R module, print a new A/R to G/L interface (2/32/3), for this example using 08/01/xx – 08/31/xx.
  • ​Total the sum of all the debits and credits for the A/R Trade account, for this example it would be 105-00-01.  This sum should equal the change to the G/L receivables account from the A/R Interface (if you have more than one division, look in the Consolidated section).  There should be a debit (sales) and credit (from cash).  The difference/change will be the amount that goes to the G/L.  

• In the G/L module, print from the YTD Master (4/20)

  • ​Print selected YTD records (subtask 4)

  • Please enter – starting Division #: ALL

  • Please enter – starting transactions #: ALL

  • Please enter – starting batch number: ALL

  • Please enter transaction sources: A/R

  • Please enter transaction types: I

  • Please enter – starting amount: ALL

  • Print report by: 2) G/L Account Number / TRX Date

  • Please enter – starting G/L Account Number: 1050001 (per this example)

  • Please enter – ending G/L Account Number: 1050001 (per this example)

  • Please enter – starting TRX Date: 0801xx (per the example)

  • Please enter – ending TRX Date: 0831xx (per this example)

  • Suppress detail records? NO

    • ​The Grand Total of this report should equal the difference/change of all the debits and credits for the A/R Trade account on the new A/R to G/L Interface printed.  If it doesn’t equal STOP.

STEP 4:

Ending current month balance:

If any G/L adjustments were made during the previous 3 steps, print a new G/L trial balance for the G/L A/R account for the month balancing. 

• For this example, the ending balance for the G/L account #105-00-01 for August 20xx should equal the A/R ATB ending balance for August 20xx.
  • If all previous steps are verified, and these reports are still off, go back to the A/R monthly balancing.
    • Take the previous month (July 20xx) A/R ATB ending total, add in the debit to accounts receivable for each division, subtract the credit to accounts receivable for each division on the A/R to G/L Interface for the month balancing (August 20xx).  Make sure this sum equals the A/R ATB for the end of the month balancing (August 20xx).
    • Or, take the previous month A/R ATB ending balance, and then subtract the Change figure, to come up with the new A/R ATB.  Verify this sum equals the new month ending A/R ATB.