Accounts Receivable

There are there elements to balance the Accounts Receivable system to the General Ledger:

Balance the Cash Clearing account
Balance the A/R accounts
Balance customer deposits

In this Topic

Accounts Receivable
1. Getting started
  1. Step 1. Identify the GL accounts that have been set up.
  1. Step 2. Create a table that includes category, cash clearing number, accounts receivable number, and customer deposit number for each GL account.
  1. Step 3. Review the GL account.
1. Balance account receivable cash clearing account - Accounts Receivable
1. Balance accounts receivable accounts - Accounts Receivable
1. Balance customer deposits - Accounts Receivable

Getting started

Step 1. Identify the GL accounts that have been set up.

A. 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.

B. 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. Create a table that includes category, cash clearing number, accounts receivable number, and customer deposit number for each GL account.

Category	Cash Clearing Number	Accounts Receivable Number	Customer Deposit Number
Ambulance	01-10770	10-1150	Override GL account
Building Permit	01-10770	10-11500	Override GL account
City Park	01-10770	10-11500	Override GL account
Contractor License	01-10770	10-11500	Override GL account
Penalty	01-10770	10-11500	Override GL account
Sales Tax	01-10770	10-11500	Override GL account

Note: The Category table stores the primary GL accounts.

Step 3. Review the GL account.

Balance account receivable cash clearing account - Accounts Receivable

The accounts receivable cash clearing should have a zero-balance at the end of each month.

Do this...

1. Review the accounts receivable cash clearing account balance in the General Ledger. Use General Ledger Inquiry or print the General Ledger Detail report to view the accounts receivable cash clearing account balance and the ending balance.

2. STOP if the accounts receivable cash clearing account balance is zero.

3. Continue if the accounts receivable cash clearing account balance is NOT zero.

4. Compare the Accounts Receivable Transaction Summary report to the General Ledger Detail report.

The source of the credit side is the CR (Cash Receipts) journal with daily totals. The source of the debit side is the AR (Accounts Receivable) journal with daily totals.
Tip! Look for a Cash Receipting transaction that needs to be updated to the General Ledger or Accounts Receivable system, or look for an incorrect journal entry to the cash clearing account.

Balance accounts receivable accounts - Accounts Receivable

At the end of each month, balance the Customer Deposit Liability Account balances in the General Ledger to the Customer Open Deposit report from Accounts Receivable. HowHow

1. Review the Customer Deposit Account balance in the General Ledger.

- Use General Ledger Inquiry or print the General Ledger Detail report for each account.
- Review the ending balance for each account.

2. If the Accounts Receivable account balances in the General Ledger match the ending balances in the Accounts Receivable by Category report, you are DONE.

3. CONTINUE if the balances DO NOT match.

- Identify the item that is out-of-balance. Use the General Ledger Detail report and General Ledger Update Summary from the Accounts Receivable program.
- The source of the credit side is the Payment Update portion of the Accounts Receivable Update to the General Ledger. The source of the debit side is the Billings Update portion of the Accounts Receivable Update to the General Ledger.

Do this...

1. Review the Customer Deposit Account balance in the General Ledger.

Use General Ledger Inquiry or print the General Ledger Detail report for each account.
Review the ending balance for each account.

2. If the Accounts Receivable account balances in the General Ledger match the ending balances in the Accounts Receivable by Category report, you are DONE.

3. CONTINUE if the balances DO NOT match.

Identify the item that is out-of-balance. Use the General Ledger Detail report and General Ledger Update Summary from the Accounts Receivable program.
The source of the credit side is the Payment Update portion of the Accounts Receivable Update to the General Ledger. The source of the debit side is the Billings Update portion of the Accounts Receivable Update to the General Ledger.

Balance customer deposits - Accounts Receivable

At the end of each month, balance the Customer Deposit Liability Account balances in the General Ledger to the Customer Open Deposit report from Accounts Receivable.

Do this...

1. Review the Customer Deposit Account balance in the General Ledger.

Use General Ledger Inquiry or print the General Ledger Deposit report.
Review the ending account balance for each account.

2. If the balances match, you are DONE.

3. CONTINUE if the balances DO NOT match.

Compare the Deposit report for new deposits and the Refunds/Applied report from the Accounts Receivable program to the General Ledger Detail report.
The source of the credit side are deposits applied and deposits refunded. The source of the debit side is new deposits posted from the Cash Receipting program.
Hint! Make sure the General Ledger beginning balance matches the previous month's Open Deposit report.