- The correct documentation is available when an audit is scheduled.
- Inconsistencies in the information in the two modules can be identified and corrected before the period is closed for the month.
Print reports in the Accounts Payable module and in the General Ledger moduleAll the information that is entered in the Accounts Payable module updates a General Ledger account. The primary account that you must reconcile in the Accounts Payable module is the accounts payable account. Other accounts that you must reconcile include the holding account, the purchases accounts, the pre-payment account, and the cash accounts.
Step 1: Print a report in the Accounts Payable moduleTo verify that the Accounts Payable amount and the General Ledger amounts are the same for the current period or for past periods, you can use one of the following two reports in the Accounts Payable module:
- The Vendor Period Trial Balance report
If you print the Vendor Period Trial Balance report, use the Prior Period format. If you have a multiple-currency database, use the Prior Period - MC format.
- The Period Sensitive Aged AP report
If you print the Period Sensitive Aged AP report, use the Historical format. If you have a multiple-currency database, use the Historical MC format.
It is also helpful to compare the balance that appears in the Period Sensitive Aged AP report to the balance that appears in the Vendor Period Trial Balance report. This way, you can rule out any discrepancies between the two reports. If the two reports are not in agreement, you can narrow down which vendor is causing the two reports to not agree. Additionally,, if the two reports show two different balances, check to see if either report agrees to the GL.
Step 2: Print a report in the General Ledger moduleIn the General Ledger module, you must print the Trial Balance report for the account that you are balancing. You can use either the Combined Totals format or the Debit and Credit Totals format.
To specify the account in the General Ledger module that you want to print a Trail Balance report for, follow these steps:
- In the Trial Balance (01.610.00) dialog box, click the Select tab.
- In the Field field, type account.acct.
- Select Equal in the Operator list, and then type the account number of the accounts payable account in the Value field.
Step 3: Compare the reportsThe account total in the Trial Balance report should balance with the total in the report that you printed in the Accounts Payable module. If the totals from these two reports balance, no additional action is required.
Note If you have multiple accounts payable accounts, or if you have multiple subaccounts and one accounts payable account, you must use one of the following procedures to compare the reports:
- Print the report for the Accounts Payable module by using a select statement so that the report includes only one of the accounts payable accounts, and then use the same select statement in the General Ledger Trial Balance report. Then, compare each accounts payable account one by one.
- Add all the accounts payable accounts in the General Ledger Trial Balance report, and then compare the total to the total in the report for the Accounts Payable module.
Reconcile differences between the report for the Accounts Payable module and the General Ledger Trial Balance reportIf you find an inconsistency between the totals in the Period Sensitive Aged AP report or in the Vendor Period Trial Balance report and the General Ledger Trial Balance report, follow these steps to locate the source of the inconsistency.
Step 1: Print the Detail General Ledger reportFirst, print the Detail General Ledger report. The Detail General Ledger report shows all the entries that have been posted to the accounts payable accounts and to the subaccounts for the period. The JrnlType field lists the module that the entry originated in. If the journal type is AP, the entry originated in the Accounts Payable module. If the journal type is GJ, the entry originated in the General Ledger module. If the journal type is AR, the entry originated in Accounts Receivable. If there is a journal type that is different from AP, an entry was made to the accounts payable account by using another module. Entries that are made to the accounts payable account through other modules create a difference between the totals in the General Ledger module and the Accounts Payable module. If there is a journal type that is different from AP, you must locate the original entry.
Step 2: Locate the original entryTo locate the original entry, follow these steps:
- Note the batch number of the transaction in the BatNbr field, and then note the entry in the JrnlType field in the Detail General Ledger report.
- Open the edit report dialog box for the module that is listed in the JrnlType field.
For example, if the journal type that is listed in the JrnlType field is GJ, open the General Ledger Edit (01.810.00) dialog box.
- In the edit report dialog box, click the Select tab.
- Type batch_batnbr in the Field field.
- Select Equal in the Operator list, and then type your batch number in the Value field.
Research the transaction in question on the batch report. Decide the adjustments that are required to balance the General Ledger accounts and the Accounts Payable accounts.
Step 3: Analyze prior periods and unposted entriesEntries that are posted to prior periods do not print on the current-period Detail General Ledger report. If the current-period total in the Accounts Payable module does not agree with the current-period total in the General Ledger module, examine previous periods to determine when the out-of-balance condition started. Print a Detail General Ledger report for the prior period, and then research the transactions that were posted to that period. Transactions that were posted in a different period are marked with an asterisk. The following message is printed at the bottom of the page: You can also use the General Ledger Transaction report to try to reconcile the inconsistencies between the General Ledger module and the Accounts Payable module. To print this report, click General Ledger Transaction on the Reports menu. Use the Unposted format. All transactions that are entered through subsidiary modules such as the Accounts Payable module or through the General Ledger module are listed in this report. You can review this report to make sure that there are no unposted transactions that affect the balances in the General Ledger module.
If you cannot resolve the inconsistencies by analyzing the unposted entries and the prior periods, you must perform the data verification procedures that are described in the following sections.
Step 4: Perform transaction validationReview the Account Distribution report to verify the following:
- Make sure that the accounts payable accounts were correctly credited for vouchers and adjustment credits.
- Make sure that the accounts payable accounts were correctly debited for adjustment debits and checks.
- VO = Voucher
- CK = System Check
- HC = Manual Check
- AC = Adjustment Credit
- AD = Adjustment Debit
The Accounts Payable Transactions report that you can print from the Accounts Payable Reports dialog box is a very helpful report if questionable transactions appear on one or more of these reports. This report lists each transaction that was entered for the current period in the Voucher and Adjustment Entry (03.010.00) dialog box, the Manual Check Entry (03.030.00) dialog box, and the Checks (03.620.00) dialog box. The report shows the accounts payable account and the offsetting expense account that each transaction was posted to.
It is also helpful to print the GL Transactions report and compare it to the AP Transactions report. Each entry in the AP Transactions report should appear in the GL Transactions report. Conversely, all transactions on the GL Transactions report that affect the AP accrual account should appear on the AP Transactions report. Investigate any discrepencies.
To print the report for a specific transaction type, follow these steps:
- Click the Select tab.
- Type aptran.trantype in the Field field.
- Select Equal in the Operator list, and then type the transaction type in the Value field.
Step 5: Perform an integrity checkThe integrity check verifies that the data in the Accounts Payable module is complete and accurate. You perform an integrity check from the Accounts Payable Integrity Check (03.990.00) dialog box. You can open this dialog box in the Accounts Payable Screens dialog box.
You can use three options to verify the data in the Accounts Payable module. You cannot change data when you select the following verification options:
- Verify Document Balances
- Verify Posted/Unposted AP Batches
- Verify Vendor Balances
You must use caution when you use the correct options and the rebuild options in the Accounts Payable Integrity Check (03.990.00) dialog box. These options change the data in the related records. Do not run the rebuild processes without approval from an accounting supervisor or from your Microsoft Dynamics SL consultant. Always back up the database before you use the following options:
- Correct Document Balances
- Rebuild Vendor Balances from Documents
- Rebuild Vendor History from Documents
- Rebuild 1099 History
If you find and correct errors, you must reprint and review the General Ledger Trial Balance report. Also, reprint the Vendor Period Trial Balance report or the Period Sensitive Aged AP report in the Accounts Payable module. Verify that the balances agree.
The Rebuild 1099 History option is not discussed in this document because it does not affect reconciliation of the Accounts Payable module and the General Ledger module.
After you finish monthly reconciliation and you verify that the Accounts Payable module and the General Ledger module are balanced, you can perform the month-end closing.
Summary: Discrepancies between the balances of the AP period reports and the General Ledger balance of the AP account is generally caused by entries affecting the AP module that were never posted to the GL accounts, or entries were made directly to the AP account in GL which did not originate through the AP module. We have also noticed that AP pre-payments sometimes cause out-of-balance situations. Look closely at the vendors affected by pre-payments to see if those transactions could be the cause of the out-of-balance situations. Remember to include the AP pre-payment account in your reconciliation. Additional assistance can be provided by contacting technical support if none of the above suggestions find the cause of the issue. Prior to calling technical support, you should know in which period the out-of-balance situation first occurred and have completed all the above steps to try and locate the problem transaction(s).
For information about technical support for Microsoft Dynamics SL, visit the following Microsoft Web site:
Article ID: 888149 - Last Review: 29 Mar 2017 - Revision: 4