Reconciling Accounts Receivable to the General Ledger

[AnneC1]

I am trying to reconcile the Receivables Reconciliation report to the Accounts Receivable in the General Ledger, which is showing an Out of Balance Amount of $390.94.

The Receivables Reconciliation report from previous month indicated the the Out of Balance amount was zero.  I then ran the General Ledger Detail for the current month as well as the Customer Ledger for the current month.  The Net Activity in the General Ledger Detail report was the SAME as the total of the transactions in the Customer Ledger, but there should have been a difference of $390.94 (ie equal to the Out of Balance Amount in the Receivables Reconciliation).

I note the Customer Ledger report does NOT include the balances of those debtors which have no activity in the period, so it is impossible to reconcile the opening and closing debtor balances between this report and the General Ledger.

Can you help?

[Mike_James]

Hi @AnneC1 , welcome to the forum. Is the GL balance greater or less than the report?

If you run the reconciliation report for the previous month again, is it still in balance (not sure if you have done that today). 

If it's not, then something in a previous month has changed. Run it at the previous month until you find a month-end which was in balance. 

If it is, run the reconciliation report for dates within the current month, halving the gap each time. For example, first run for the 15th. If it's in balance, go forward, ie run for the 22nd. If not, go back, ie run for the 8th. Repeat, halving the date each time. Hopefully you'll find a day when it goes out of balance. Then have a look at the GL transactions for that day, and see if anything pops out. 

Imbalances can also be caused by a payment within the month of an invoice in the following month. The customer payment history report lists invoices completely paid. If you run this report, review for any invoices dated post month end.

Imbalances may also be caused by GJ entries to the debtors account; review across a suitable date range via Find transactions, filtered for general journals.

[AnneC1]

Thanks Mike,

The GL balance is less than the Receivables Reconciliation total.

As you suggested, I ran the Receivables Reconciliation report until the first day it went out of balance.  So for that day I ran the GL transactions for the Accounts Receivable, as well as the Customer Ledger - and these amounts were equal.

What am I missing???

[SamaraM]

Hi @AnneC1 

Sorry for the delay in response, but It's great to see that @Mike_James has already provided assistance with this.

Are you able to send through a screenshot of the report that is showing as out of balance? 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.