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Hi
We have an AP Clearing Account and I am trying to reconcile as it appears that I am overstating in this particular account. When we receive a PO, that is suppose to go to debit inventory and credit AP Clearing. Once the invoice is received to match, the Clearing account is Debited and AP is Credited. When we are ready to pay, Cash is Credited and AP is Debited. The issue that I am having is that the Clearing account is very large but I don't know what the proper way is to reconcile this particular account. If there happens to be any differences between receiving and invoice, the difference is Debited/Credited to our overhead account and Debited/Credited to the inventory account. Is there anyone that can assist or point me in the right direction?
I ran a detail report of the account to capture differences between the debits and credits (POIVC vs RECVG and found some that way. With this being a carry over from year to year the account keeps growing so I am just trying to focus on this year and then adjust properly at year end once I figure out a report to tie back to the General Ledger.
Thanks
Hello Connie,
Thank you for your post! I think that you would potentially benefit from using the Reconcile to GL Routine in Dynamics GP. If you are confident that you have already found the transactions that have differences between Shipments and Invoices, the Reconcile to GL Routine will help to account for the Invoice information that hits Payables Management, and to account for the Payments as well. You can use the Reconcile to GL routine in conjunction with the Historical Aged Trial balance report and the General Ledger Trial Balance Detail report to find matched, potentially matched, and unmatched transactions. This can help identify entries that did not get posted to the General Ledger, or even entries that were posted directly to the General Ledger without an associated Payables Management entry.
To get to the Reconcile to GL Routine, go to the Financial homepage | Routines | Financial | Reconcile to GL. From here, you can select the Payables Management option in the Module selection if needed, and enter the date range that you would like to look at, as well as enter the Accounts that you would like to review. This would be where you would enter the AP Clearing and AP Accounts, although you may just want to start out with your AP account to work through and familiarize yourself with the process.
You can also find some further information on this routine, including commonly asked questions for the tool, linked below.
Thank you again and have a great day!
Regards,
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