Accounts Payable

There are three elements required to balance the Accounts Payable system to the General Ledger:

Invoices and adjustments
Accounts Payable checks
Purchase orders/encumbrances

In this Topic

Accounts Payable
1. Step 1: Identify the GL account information in the Organization file
1. Step 2: Balance invoices and adjustments
1. Step 3: Balance checks
1. Step 4: Balance purchase orders to the money encumbered in the General Ledger
1. Troubleshooting
  1. How do I fix AP checks that were charged to the wrong bank and the General Ledger has been updated?

Step 1: Identify the GL account information in the Organization file

1. Go to the GL Info tab to identify the interface, accounting basis, default journal, bank number, accounts payable liability account, and the reserve for encumbrance account.

2. Partial GL accounts for AP Liability and Reserve for encumbrance accounts: Use a partial GL account to create a Payables Reserve Allocation when invoices and purchase orders are updated to the General Ledger. The credit side of the invoice or purchase order is based on the fund that was used when the expense or debit side of the entry was created. Using a partial GL account means ownership of the Payable/Reserve balance is given to each fund accurately.

Step 2: Balance invoices and adjustments

1. Invoice Adjustment Register:

Print this report after invoices are entered and before invoices are selected for payment and updated to the General Ledger. Review the report carefully to ensure invoice amounts and GL accounts the invoices are posting to are correct.

2. Unpaid Invoice Report: List all unpaid invoices for the selected GL period. Verify the Accounts Payable account balance for each fund. Tip! Select Print Order to total by fund to verify the unpaid balance in each fund.

Step 3: Balance checks

1. Print the Check Register after checks have printed and before checks are updated to the General Ledger.

Verify check amounts and check numbers are accurate.

2. Print the GL Reconciliation Summary Report.

Verify if transactions need to be updated to the General Ledger for a specific input date.
Identify items that have not been posted to the General Ledger.
Compare report totals to the Accounts Payable account detail in the General Ledger.

3. Print the GL Reconciliation Detail Report.

Note: This may take a long time to print because the transaction detail is included in the report.
Compare the items posted to the General Ledger to the General Ledger Detail report.

Step 4: Balance purchase orders to the money encumbered in the General Ledger

1. Print the Open Purchase Order Report.

Verify the information is correct.
Identify open purchase orders that need to be closed and use the Close Open Purchase Orders routine to close them.

2. Updating purchase orders to the General Ledger will create an encumbrance (EN) journal entry.

3. Verify the EN journal balance against the Open Purchase Orders balance in the Accounts Payable system. Note: Year-to-date entries ensure the encumbrances will balance.

Troubleshooting

How do I fix AP checks that were charged to the wrong bank and the General Ledger has been updated?

1. Delete the AP and CDA journals for the GL period that is impacted by the update.

2. Find the check numbers in the AP database and reset the Bank field.

A. Open System Management > Modify Data > Accounts Payable > Modify Batch Records.

B. Select Find and Replace a Field Value.

C. Select Check from Tables and Bank from Fields. Click Next.

D. In the Find Value select the bank number that is currently assigned. In the Replace Value select the bank number you wish to assign. Click Next.

E. Setup the Selection Criteria to select the check numbers (Check.Check Number), next set the Value field to the check number range to be updated. Click Next.

F. Click Continue.

3. After the bank numbers have been corrected on the check records in Accounts Payable, it is now time to update the General Ledger with the corrected data.

A. Open Organization > Update General Ledger.

B. Enter the period to update and select Update Transactions That Have Already Been Updated check box. Note: This check box should only be selected when the AP and CDA journals have been deleted from the General Ledger; otherwise, the entries will be posted twice.

C. Click GO.

4. Verify the updated checks display in the CDA journal and the appropriate bank reconciliation.