How To Reconcile Your Receivables

Steps to Take When You Are Out of Balance

Generate an Account Analysis Report in Finance on the accounts receivable GL. Check to make sure all paid on account transactions equal cash recorded against customer accounts in Accounts Receivable. This can be done by running batch balance reports on Accounts Receivable batch code with a CA type (cash receipt batches) in Accounts Receivable.

Generate an Aged Trial Balance as at December 31, 2020 compare this to your trial balance. If there are differences, entries have been made using the wrong date. To track down these entries run batch balance reports on all Accounts Receivable batch codes with a BL batch type (such as INV, CRN, and ADJ Accounts Receivable batch codes) and look down the date column.

Make sure any journal entries made to the accounts receivable account have also been updated in the customer file in Accounts Receivable (See note above regarding journal entries).

Make sure all batches in Accounts Receivable have been balanced and interfaced. If you are unsure if everything has been interfaced - run another one. If everything has been interfaced a zero (0) batch will be created.

Make sure Misc. Cash entries have not been charged to the accounts receivable account in error. An account analysis of your A/R account will show if any miscellaneous cash entries have been made.

It is important to always look at the .LOG files created by the interface to Finance. If the interface should fail, it might flag the batches as being interfaced but there will be no transactions in Finance.

Hints to Prevent an Out of Balance Receivables

If entering adjustments, credit notes, invoices, etc., for a prior accounting period make sure the transaction date is in that accounting period.

If entering invoices for a future period, make sure the billing date and the due date fall in that future period