MV Software Knowledge Bas…  Modules»Accounts Receivable»A/R End of Month "Display Tota…
  
Page Collections
Attributes
Hierarchy
  • RSS Feed

Last modified on 10/9/2015 1:18 PM by User.

Tags:
A/R, End, Month, Display, Total, Value, Open, Incorrect

A/R End of Month "Display Total Value of A/R Open" is Incorrect

For A/R Month-End some calculations are done and the sum is verified against System Management (Task 32), Display Total Value of A/R Open (Sub-task 1).  This document explains how to find & correct the incorrect Display Value.

On an adding machine:

  1. Enter the balance brought forward from the previous month,
  2. Add the total amount of sales from the sales postings for the current month plus any finance charges, (this can either be added up on the calculator or get the figures from your spreadsheet)
  3. Subtract the Total Change to AR from the cash postings, (this is the total of the cash postings either added up on the calculator or get the figures from your spreadsheet).   
  4. This number must exactly equal the “TOTAL VALUE” displayed on the screen.
  • If all month long you have been balancing A/R daily, you would have already found the error and fixed it, or you would know when you last balanced and you should look at the postings from that point forward.
  • Check addition – either manually or verify the amounts on your spreadsheet were entered correctly
  • Verify the system prompts for the Display Total were answered correctly:
  1. Starting date: Use 01-01-00, unless there are Receivables older than this date.
  2. Ending date: Use the end of the month is being balancing.
  3. Include Retail Accounts? (Y/N): Answer Y for YES.
  4. Date Basis:(1)Due/(2)Document: Use 2 Document.
  5. Please enter - Starting division: Enter for ALL
  • Check the postings to see if there are any zero documents numbers. There should NEVER be any zero document #'s. If the zero document number is for a zero amount, it may be deleted from the A/R Open (Task 18), but be VERY careful.   Note:  this rarely occurs, however if it does then:
  1. ​If the zero document number has an amount, an investigation needs to be done to determine the actual document number.
  2. Another way to find zero document numbers is to go to Task 27 in AR (Customer Inquiry) and with the cursor at the Customer number, press the ENTER key, and at the Document number enter 0 and press ENTER.  This lists all customers with zero document numbers.
  • The dates on the postings should be only for dates that were on the AR to GL Interface
  • Check for duplicate customer numbers. Use Aged Trial Balance (Task 9), Quick Aging Summary from Customer File (Numerical) – Sub-task 1 (ARTSMN)
  1. Skip zero balance accounts? N
  2. ‘Pre-print preview’ the report to the screen
  3. ALL customer #’s
  4. Look for message of duplicate customer’s.
  • Print the A/R Open items to the screen. Use A/R Open Items (Task 18), Print Selected Open-Item Records (Sub-task 4).
  1.  Pre-print preview to screen
  2. ALL Batch numbers
  3. ALL customer types
  4. ALL statement types
  5. Print report by 2: Customer number / Document date / Division number
  6. ALL customer numbers
  7. ALL document dates
  8. ALL division numbers
  9. Suppress detail records? NO

Watch for any messages on the screen.  “Example: Invalid customer #00251 on doc #01656, must re-add customer   CR TO CONTINUE”.    This message is stating there is an invoice in the A/R Open Items file with an invalid customer number. The customer number must be re-added.  This invoice wouldn’t be included in the “Display Total Value of A/R”.

When the report is on the screen, go to the last page.  Look for the total on this page.  It is the total of your calculation?

  • Check the “Display Total Value of A/R” again.  Answer all the questions the same as above EXCEPT, the END DATE.  This time type in the end of the previous month ending date.  (For example if you’re balancing July 20xx, this time you enter the same beginning date of 01/01/00 and an ending date of 06/30/xx.) You are verifying the end of last month total is still the same.  If it isn’t the same as it was when you balanced last month it could mean a couple of different things.
    • ​Something was changed, added or deleted in A/R Open Items (Task 18).
    • The Clear Paid Inv.’s from AR Open program (Task 32, Sub-task 4) was run for the month that you are now balancing.  To check this:
      • Go into Cleared A/R History, (Task 24, Sub-task 4) You may pre-print preview it to screen or actually print it.  Answer questions:
  1. ALL Batch #’s
  2. ALL Customer #’s
  3. ALL customer types
  4. Starting document date: Use the first day of the month you are balancing.
  5. Ending document date: Use the last day of the month you are balancing
  6. Print report by: 1) apply-to number/document type.
  7. ALL apply-to numbers
  8. ALL document types
  9. Suppress detail records? NO
  • The report should come up blank on the screen.  If there are figures on the report, this means someone cleared paid invoices during the month being balancing with a date you are currently trying to balance.  There is NO way of knowing if the reason you are off is because someone entered, deleted, or changed something in the A/R Open with an old date.

 

  • Look for A/R Open duplicates, go to System Management (Task 32), Identify A/R Open Duplicates (Sub-task 10).  This prints a report of duplicate document #’s showing the date, customer, record type, amount and batch number for each duplicate.  Answer questions:
  1. ALL document dates
  2. ALL divisions
  3. Pre-print preview to screen or print it on paper
  4. If duplicate records show up, contact us on how to correct them in AR Open Items (Task 18).  After the duplicates are fixed, go back into A/R Open Items and print this report again (either to screen or on paper) to assure the duplicates are gone.
  • Go to: System Management (Task 32), Compare Sales Hist / Dist /Open (Sub-task 11)
  1. Pre-print preview or print on paper
  2. Build missing A/R open item records N, press enter for N
  3. Starting document date: Use the first day of the month being balanced
  4. Ending document date: Use the last day of the month being balanced
  5. ALL batch #’s
  6. ALL divisions
  7. This report should come out all zeros.  If anything shows up on this report, contact us for assistance via e-mail or fax: 248 583-4110.
  • For each batch number a report may be printed from A/R Open Items (Task 18). Since the above steps check each sales record against the A/R Open Items, now you may check each cash batch against the A/R Open items.  Go to:  A/R Open Item (Task 18), Print Selected Open-Item Records (Sub-task 4)
  1. Pre-print preview to screen
  2. Batch # TYPE IN ONE BATCH # AT A TIME
  3. ALL customer types
  4. ALL statement types
  5. Print report by 2: Customer number / Document date / Division number
  6. ALL customer numbers
  7. ALL document type in the first and last day of the month being balanced
  8. ALL division numbers
  9. Suppress detail records? NO
  10. When the report is on the screen, go to the last page to see if the total of the batch is correct.
  • If there is still a problem, look at each sales and cash posting, and check the individual entries for a date error!

Make the necessary adjusting entries. NOTE: DO NOT MAKE CHANGES IN ANY OF THE MASTER FILES! This is not the right way to correct imbalances. Most files in the system are inter-related, and changing only one or a few of them improperly could create new imbalances.

Corrections should be made with adjusting debit and credit memos This is done in:

  • Accounts Receivable (Module 2)
    • Sales Entry & Editing (Task # 1) [see document:  Task #1 - Sales Entry and Editing for step-by-step instructions]
      • Two adjusting entries need to be made for each document found to be incorrect. The first adjusting entry should be one that EXACTLY reverses the incorrect document. If the incorrect document is an invoice, the reversing entry should be a credit memo. If the incorrect document is a credit memo, then the reversing entry should be a debit memo. The net effect of the reversing entry then will be to zero out the incorrect document.

The second adjusting entry should be one that puts the correct document data into the computer. If the incorrect document was an invoice, then the second adjusting entry should be a debit memo. If the incorrect document was a credit memo, then the second adjusting entry should be a credit memo

  • The adjusting entries, with the incorrect date, should be on an edit/posting all by themselves.
  • Be sure to print an edit list and check it carefully before posting.

The bottom line total of the edit/posting should be zero.