Receivables Reconciliation [Summary] - out of balance

Hi kimpossible , if you generate the report for a date in the future, eg 31/12/2023, does the out of balance still appear?

Converting an order to an invoice would cause the invoice total to appear in receivables, and if a deposit had been paid, that amount would be automatically transferred to the credit of the receivables account. Is this the transaction you are referring to?

Customer deposits on orders go to the specified linked account. If that account was changed between receiving the deposit and converting the order, then there may be an offsetting amount in the linked account.

Hi Mike_James ,

Yes, it is related to that. 

My staff accidentally encoded 31/08/2222 upon convert to invoice phase.

To clear out the floating amount in the deposit and trade debtors, we did the following:

1. Create a credit note [negative sales invoice] using client deposit instead of income account - dated 31/08/2022

2. Create a normal invoice using client deposit instead if income account - dated 31/08/2222

3. Apply to sale was dated 31/08/2222.

Receivables recon is balanced only if I date it 31/08/2222;

Statement of Account reflects the correct balance of the client as of current date.

Hope you can help me on this.

Thank you.

Hi kimpossible , the entries you have put through leave a credit entry in Debtors in August 2022, a debit entry in Debtors in 2222, and the income reported only in August 2222.

To correct this, try entering 2 general journals:

In Aug 2022: DR Receivables, CR Income (& Taxes if any)

In Aug 2222: DR Income/Taxes (& Taxes if any), CR Receivables

That should remove the out of balances on debtors and report the income correctly in 2022. Let me know the result.

Hi Mike_James ,

All balances are tied up after all the correcting entries I made.

The error in the out of balance is not in the general ledger anymore. It is in the receivables  amount presented for such client.  

Also, I just noticed, the activity statement of account reflected correct balances for the client, but the aging details below the statement (current, previos month and prior months classification), has an error. There is a negative balance in the prior months portion showing negative balance. 

Would it be better if I reverse first all entries made for correction for better analysis? Hope you can help me on this. I tried several approaches and receivables out of balances can be eliminted; however, the activity statement aging portion is still showing the negative portion in the prior month.

Currently, I am not able to determine the composition of the negative portion showing in the aging but this might be connected to the error in deposit application as the deposit was initially recorded in 2021 and was converted to invoice using 2222 date.

Your responses are greatly appreciated.

-Kim

Hi kimpossible , I would recommend not reversing your corrections, it will make further review harder.

Is your file in the cloud?

Hi kimpossible , could the aging issues be corrected by changing the due dates on the transactions involved?

Hi Mike_James ,

Thank you for responding. Okay, will not reverse of delete corrections made at the moment.

Our file is not online (no subscription).

Could the aging issues be corrected by changing the due dates on the transactions involved?

- Could you elaborate on this pls?

One of my trials involved:

1. I deleted all the correcting entries

2. Created an invoice at the future date

3. Applied the deposit (the one dated 2222) to it.

4. Then I set up another deposit at the current date and applied it to the current invoice.

All entries here resulted to:

- GL balances are okay

- Error in the table of activity statement

- Error in the aging details below the statement.

Pls bear with me on this. We encountered the same error last year and we did the same correcting entries but it is the first time to encounter this. 

Hi Mike_James ,

I repeated the steps of my correcting entries and when I generated, no out of balance in the receceivables recon and statement of account table. However, we still have this negative balance reflecting  in the statement. 

I have attached a screenshot of the statement. table is not equal to the summary below.

Note that the converted order with error amounted to 825. However, the negative balance in the aging presented is 1361.

Is there a way to trace where 1361 came from?

Your help is ver much appreciated. Thank you!

Thank you.

Hi kimpossible , the opening balance of K2084.00 doesn't match what the actual opening balance is either (K385.00). From the facts given I can't explain that. Since this has happened before, I suggest that a moderator should comment further, it may be that there is a corruption in your file (ie that the program is mis-reporting the results of all your particular entries).

If you create an activity statement from the beginning of this account, or the earliest possible time, to 31/12/2222, do the differences disappear?