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The “Reconcile to GL” tool helps you find differences between Payables Management (and GL) and Receivables Management (and GL). Accountants always run their monthly Aged Trial Balance reports for General Ledger, Accounts Payable (Payables Management) and Accounts Receivable (Receivables Management) at the end of the period. The GL balance for the Accounts Payable account(s) should match up with the total on the Payables report and the GL balance for the Accounts Receivable account(s) should match the total on the Receivables report. Usually, if you are posting everything through from the subledgers to the GL, your posting dates are correct, and your default accounts are set up correctly, the balances match with no problem. However, sometimes those numbers don’t match and accountants have to start digging through detailed transactions to see what went wrong. That’s when the “Reconcile to GL” tool can be a lifesaver!
The “Reconcile to GL” tool is fairly self-explanatory as far as how to use it. You simply choose whether you are reconciling Payables or Receivables Management, put in your A/P or A/R account number(s), type in your date range, and click “Process”. The tool goes through the transactions for that date range, analyzes the information, and produces an Excel Spreadsheet that shows which transactions look like problems. It lists transactions as either “Matched” (no problem found), “Potentially Matched” (might be a problem) or “Unmatched” (likely a problem). The system makes the determination about which transactions are problems based on their source, their type, and whether the transaction traces back to the subledger appropriately.
I can tell you from firsthand experience that the Reconcile to GL tool is a real timesaver. If you didn’t know it was there, or if you knew it existed but you didn’t think it would be helpful, I urge you to make it your first step the next time you don’t have an immediate match between GL and your Payables or Receivables subledgers!
Beth Hodge, Microsoft Business Management Solutions Professional
Intelligent Technologies, Inc.,