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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / AR Aging Issues
Microsoft Dynamics GP (Archived)

AR Aging Issues

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Posted on by Community Member Microsoft Employee

I recently started a new job and am new to GP. I inherited a GP system that has never had the reconcile to GL task performed and has a number of variances between the GL and the AR module. The Aged Detail Trial Balance, pulls in cash receipts that were recorded through the Sales module but never actually debited or credited any AR account. So, my aging total does not reconcile to my GL. I can get close if I start removing the credit balances but I can't reconcile exactly, so I am partially blind to what actually makes up my AR balance. Any suggestions on how to reconcile or un-muddy up my aging would be greatly appreciated.

Thanks!

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: AR Aging Issues

    You might want to also check out the below link on monthly AR closing.

    community.dynamics.com/.../receivables-management-period-end-closing-in-dynamics-gp

  • MattPaulen Profile Picture
    MattPaulen 6,912 on at
    RE: AR Aging Issues

    For one time cash receipt, are you meaning that you don't plan on that customer ever doing another transaction?  It depends on how you want to handle it.  Some will still create a customer ID and enter the invoice/transaction so you have the history.  You can also enter in a receipt directly in to the Bank Rec module, bypassing the AR module.  (Just a note on the bank module, when you enter a receipt in to AR or even the bank module, that receipt then needs to be deposited in to the bank by entering the deposit in the Bank module where you select what receipts make up that deposit, otherwise your checkbook balance won't get updated)

    I always like to use the Historical Aged Trial Balance for the AR Aging.  That way you specify the date you want to run the report as.  So if you run it as of 03/31/2016, it will show you what your aging was as of that date.  If you run it as of today's date, it will be as of today's date.  If you use the normal Aged Trial Balance w/Options this will be everything in the system, even something post dated.

    One option would be to void the receipts through the Receivables Posted Transactions window (Sales >> Transactions >> Posted Transactions).  Keep an eye on the void and posting date.  The Void date will be the date the void hits the AR module where the Posting Date will be the date it hits the GL.  Since those are effecting cash that may end up throwing your cash balance off if the user was reconciling the bank module.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: AR Aging Issues

    Thanks again, Matt. This is really helpful. I have a couple more questions if you don't mind.

    In the case where we receive a one time cash receipt, what is the proper way to record that transaction?

    What is the best way to run the AR Aging report in GP?

    If I have old cash receipts that were not applied correctly or at all or don't even have an existing debit in AR to apply against, how would you suggest cleaning that up in order to move forward?

    Thanks again!

  • MattPaulen Profile Picture
    MattPaulen 6,912 on at
    RE: AR Aging Issues

    Are these cash receipts being applied to anything?  For the customer that has the cash receipt against it, are there open invoices?  If not, should there be invoices there that those cash receipts should then be applied against?

    As you noticed, the accounts that are getting used on the cash receipt are not correct.

    Just to give a quick, basic overview of AR in GP.  Invoice is entered for a customer, typically with terms.  AR is debited, sales account is credited.  The payment is received and entered in as a cash receipt.  Cash is debited, AR is credited.  That cash receipt is then applied to the invoice which then will show both the invoice and the payment as fully applied.  The AR GL account will have a zero balance.

    I would definitely check the history for one particular customer to see if things make any type of sense.  I've gone in to many situations like this where it's a mess.  Hopefully it doesn't end up being too bad.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: AR Aging Issues

    Thanks, Matt. The reason I am pretty sure the issue is, at least somewhat, in the AR module, is because the Aging is returning a sizable credit balance. One of the transactions that is causing an issue is debiting cash and crediting a non-AR account but was recorded as a cash receipts journal entry. Is the fact that it was recorded as a CRJ part of the issue? Am I missing some definition when running the aging?

  • MattPaulen Profile Picture
    MattPaulen 6,912 on at
    RE: AR Aging Issues

    From what you are describing, it sounds like the AR module might have the correct balance but the GL is what's off since the AR GL account never got hit on some of the transactions.  Not sure if this is an option but you could potentially just run the balance of the AR as of April 30th when it gets there and then make an adjustment to the GL to bring it in line with the AR module.

    Then monitor it going forward to see how things are going.  One thing you'd have to keep an eye out for is if any of those transactions that were not hitting the AR GL account were voided, that would throw the two modules back out of balance.

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