Unvouched Accounts Payable Positive

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Posted on by MahGah

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We have "Unvouched Accounts Payable". The purpose of this would be to show something we have received but don’t have an invoice for yet. Our accounting team thinks this account should be always negative which was the case so far. But last month this account was positive. I do not know how to investigate and see why this account was positive.

Any idea here? Where should I start and how to investigate?

Thanks

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Inge M. Bruvik 1,105 Moderator on at

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I would export all the transactions on the account to Excel and make a formula to calculate the total sum on each transaction line and then you can see when the balance of the account turns positive.

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MahGah 15,529 on at

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Hi Inge

Thanks. I tried that for entire May. The problem is each line is either credit or debit. Then the total lines it goes up and down and at the end produce the difference. I cannot tell which line/lines are causing the account to turn positive.

Do you have an example that I can use?

Thanks

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Inge M. Bruvik 1,105 Moderator on at

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Here is how i do it.

I sort the entries by date acsending

So in column b i have the amount

In column c i calculate the sum so in C2 my formula i =B2

Then in C3 my formula is C2+B3 then and so forth then i have a running total in column C and i can see at the end of what dates i have a balance that looks off.

Hope that was understandable.

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MahGah 15,529 on at

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Thanks Inge

I think our accounting does things differently. I mean I can see at the end of Feb 2022 we are negative which is correct. Then end of March we turn to positive. then in April it is more positive then in May it reduced to lower positive (like from 5k to 300). Also, looks like they do not invoice the PO and they pull it into Purchase Invoice. Hence, it is hard to find a exact Receipt that invoice applied to. In addition, I noticed many purchase invoice has a earlier date than PO Receipt. Looks like accounting enter the date of vendor invoice instead of the date we received the item in Purchase Invoice.

So far I had no success to find the cause of it or exact transaction that caused that.

I think I need to change my question to: what kind of transaction can change this account to positive? My assumptions are:

1) Prepayment of PO (since we paid for invoice but not receipt the item).

2) if Invoice was less than the PO Receipt?

Thanks for your help

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Gavin 2,508 on at

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Hi,

As you say when you receive a PO, but don't invoice the PO, assuming you have the option "Expected Costing" switched ON in the Inventory Setup, you will get a Credit posting to the relevant "Inventory Accrual Account (Interim)" (you must call this "Unvouched Accounts Payable").

Therefore you will get the opposite, a Debit posting, to the "Inventory Accrual Account (Interim)" if you have any "Purchase Return Memo" that you have only shipped and not invoiced.

Do you know if this is the case? You could search for them in the "Posted Purchase Return Shipments" page.

Just a thought.

Thanks

Gavin

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Inge M. Bruvik 1,105 Moderator on at

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[quote user="MahGah"]
1) Prepayment of PO (since we paid for invoice but not receipt the item).

2) if Invoice was less than the PO Receipt?
[/quote]
I am a little confused about what you really are trying to reconcile. Is it a G/L Account or a Vendor Account (Vendor ledger entries) ?.

To your questions:

1) A creditmemo could also bring a A/P to positive.

2) Invoicing less then PO receipt should not really be possible because then you will have a remaning qty to invoice on your PO and that needs to be handled ?

Your process seems a little unclear for me

Is my assumption correct ?

1) You register a PO

2) You receive a PO either partly or fully and at the same time you offset to your A/P for an expected invoice and this is done as a manual transaction?

3) You create an Purchase invoice based on the posted receipt and you post the invoice and a transaction to clear the offset you did in step 2?

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Dallefeld 211 User Group Leader on at

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MahGah, it is important, if you have inventory, accounting does not use a posting date prior to the receipt date.....at least at the end of the month. When a receipt on May 1 has an invoice posted April 30. This will cause an inventory to gl reconciliation problem.

Is direct posting to your Unvouched AP account turned off? If not make it so. Now review all of the entries that were Not System Created. These need to be reclassed to another account.

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MahGah 15,529 on at

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Hi Inge / Gavin / Kim

I cannot thank you enough for all your valuable input here. I have used all of them and was able to determine the problems.

1) Inge: your excel method helped me to find "range date" of problematic transactions. Also the tip about credit memo turns out to be responsible for a few issues.

2) Gavin: thanks for credit memo tip. That was the issue with some transactions.

3) Kim: you were right on posting prior to receipt date at the end of the month. I have found a few transactions that receipt happened next month but invoice date was prior month.

The other issue I have found was "invoice discount" looks like some of our vendor provide "discount term". That discount is built in their item price. Sometimes if we do not pay on time that discount laps and we pay more. Looks like for those invoices we paid more than PO and hence the account turned positive.

Thank you all

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