GP Controller Series: Improving Period-End Reconciliation

For controllers working with Dynamics GP, there are a couple of basic items that can make a big difference.

One of the big keys to getting clean reconciliations at month end is to ensure that only data from subledgers flows into control accounts in the GL. For example, the value in the AP account in GL should tie back to the detail in the subledger via the Historical Aged Trial Balance account for AP. The most common scenario when they don’t match is that someone made an entry directly to AP. That should be prevented.

The key to managing this is the Allow Account Entry setting. This is a setting in the chart on each account. This setting should be UNCHECKED for control accounts (cash, A/P, A/R, Inventory, etc.). By unchecking this option, direct posting to these accounts via the GL is restricted. Posting to these accounts must flow through a subledger . This helps eliminate mismatches when reconciling subledgers to the GL.

If someone truly needs to enter a journal entry to fix something, make them ask for this item to be checked temporarily. That additional control point helps make sure that a JE is a right way to fix something.

Don’t mix and match. For example, if there are receivables in GP they flow into an AR account in the GL. If there are also receivables from another system, a non-GL module, or some type of ad hoc AR, they should flow into a different AR account. Mixing them just makes reconciliation harder.

You can find more detail about Allow Account Entry here. Our Historical Excel Reporting can also be used to simplify the reconciliation process with Excel-based historical reports.