Reconcile Accrued A/P to the GL

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Posted on by Palma Hirschfelder ...

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We are looking for a way to reconcile our Accrued A/P to the GL.

When we run the purchasing analysis report of items received but not invoiced, we come up with a balance far higher than the GL balance for accrued A/P.

Is this discrepancy likely because there may be instances when the enter/match invoice process was not used?

Is there a better way to substantiate the GL balance for accrued A/P?

Thanks in advance,

Palma Wurzel

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Frank Hamelly | MVP... 46,633 Moderator on at

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Palma, if you're on GP10 or GP2010, then you should use the 'Reconcile to GL' feature under Financial Routines. This will create an Excel spreadsheet that will indicate the transactions in the GL that are matched by transactions in the AP module and highlight those transactions where are match doesn't exist. If you're on GP9 or prior versions, you're pretty much on your own to do the reconciliation manually but here's something that may help -

http://gp2themax.blogspot.com/search/label/Account%20Reconciliation

Good luck!

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Palma Hirschfelder ... 565 on at

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We already use that process to reconcile A/P to the GL.

As far as accrued A/P goes:

We issue a purchase order. Our warehouse personnel "receive" the items when they arrive and post that entry to an Accrued A/P account in the GL, at the value of the items as listed on the PO.

When the invoice arrives from the vendor, we use the enter/match invoice window to match the invoice to the PO. On posting of the vendor invoice, the Accrued A/P account is cleared and the full amount of the invoice is posted to the A/P account.

So, to reconcile our accrued A/P to the GL, theoretically we should be able to run the purchasing report for items received but not invoiced. The total should match the GL balance for accrued A/P.

(Purchasing > Reports > Analysis > Received/Not Invoiced)

However the report is showing a total far greater than the GL balance.

Would this occur for any reason other than payables personnel _not_ using the enter/match invoice process?

If I run the reconcile to GL routine for the accrued A/P, of course there are no matched entries. However it does give me a list of which item receipts make up the GL balance. That is a start.

I was hoping there would be a better way. Or that there would be some explanation of the Received/Not Invoice report other than my assumption about the enter/match invoice process stated above.

Thanks,

Palma

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Carol Effler 50 on at

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Palma,

Were you able to get any resoloutions? I am having the same problem. I would really appreciate any assistance you can provide.

Carol

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L Vail 65,271 on at

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Palma,

Are you doing any drop-shipments, either on the Sales side, or the Purchasing side? Are your posting accounts coming from the item or the customer?

Kind regards,

Leslie

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Palma Hirschfelder ... 565 on at

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Hi Carol and Leslie,

No, I was never able to get a resolution. I'm not sure what our Accounting department is doing w/ accrued A/P right now, if they are attempting to reconcile to purchasing analysis reports.

We do some drop-shipments in SOP. Our posting accounts come from neither the item or customer, they are the defaults we set up for the company.

We also hit accrued A/P with purchases for Wennsoft jobs (3rd party software here), but again, if using the enter/match invoice process, accrued A/P should clear without issue.

Carol - sorry I could not be of help. It has been several months since you posted. Did you learn anything since then? Perhaps you can help me! :)

Palma

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Carol Effler 50 on at

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Palma,

I haven't had any luck either and our process are very simple. Purchase orders are received by one of two people. I would expect my reconcilation to be simply receipts not invoiced. I was interested to see you also use Wennsoft Jobs. We also use Wennsoft to track our jobs. I really need to learn how to utilize it more fully. One of these days I will find the time.

Carol

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L Vail 65,271 on at

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Palma,

You are correct if the AP department does not use the invoice matching, your Accrued AP will not be relieved. Drop ships can also cause an outage. I haven't followed a Wenn Soft posting through, but if you go through the steps, does it dr and cr the correct accounts?

I would check this account daily (the accrued ap account) so that you can isolate the types of transactions that are throwing it off.

Let us know what you find.

Kind regards,

Leslie

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