Balancing received not invoiced to the GL - problems with DEBIT balances.

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Posted on by NikkiG

I am trying to get our received not invoiced account to balance. I've done a lot of research and I understand that running the received not invoiced report and matching it to the GL is the way to go. However, that is not solving the entire puzzle for me. The problem, as I can see it in historical years, is when an invoice is posted BEFORE a receipt. For example: PO1234 is created on 4/1. The invoice is posted against that PO on 4/30, and then the receipt is posted on 5/3. So, that would give me a debit balance for the April period. Those types of items don't show up on the report. Is there a way to check for items like that to balance against the GL? The bigger question is - is there a setting to block the capability of posting an invoice before a receipt is posted? I would prefer than an invoice is never posted before a receipt, but with several hands in the pot it is a matter of human error. I would like to be able to block that from happening.

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Richard Whaley 25,195 on at

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There are a couple of issues with the three way match that require good company procedures to be followed to resolved. You have found that posting an invoice before the receipt causes one level of problems. Another set of issues is created when you close the PO after receiving but before matching. Money is left everywhere.

The proper business process MUST be followed (Issue PO, Receive, Enter Match Invoice, Close PO) to have everything close properly. To clean up, close all dead POs where invoices have been received and entered. Print the RNI report and adjust the GL balance to match the report. Now, check the balance daily for a few weeks and take a ruler to the knuckles of anyone violating the business rules!

Version 2013 will help as it offers a switch that will prevent the closing of POs that are not fully matched.

You also have to match Landed Costs invoices to POs if you are using those before closing the PO.

You might want to review a copy of our book, Understanding Purchase Order Processing at www.AccoladePublications.com.

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soma 24,410 on at

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Better you can follow below the 3 steps to complete the PO process.

1. Create PO.

2. Receive the PO and Invoice it in a single step(Use the type as "Shipment/Invoice" inReceiving Transaction Entry). This will help you to avoid the issue for PO invoiced without the received.

3. Close PO(If the PO has been fully received and invoiced, it will closed automatically).

Hope this helps!!!

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NikkiG on at

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Is there a way to run the report for a historical date? Basically, I'm trying to see what my GL balance SHOULD have been on 12/31/13 so I can close the year with accurate balances. Is there any way to figure that out?

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soma 24,410 on at

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1. Goto: Reports-->Financial-->Trail Balance.

2. In Trail Balance Report window, choose summary or detail in option and click new.

3. In Trail Balance Report Option, choose the year as history and also enter the date whatever you want.

Hope this helps!!!

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