Accounts Payable
This account reconciliation is a
Liability
account type and a Subledger Match reconciliation type.
This type of reconciliation is used when matching the balance in the
General Ledger to another accounting information system.
In this example, the balance in the General Ledger is being
matched with the payables system report titled "Aged A/P Trial
Balance".
Most integrated accounting systems may have the
payables system
included in the total software package, but this simple review
should still be done at the end of each month to make sure there
have not been any errors in setting up the interface between the
system modules and to make sure nobody has made a journal entry to
the account in error.
Note the description above states the report needed for the
reconciliation. This is very important documentation of what your
accounting procedures are. This should
be kept up to date when reconciling your accounts. Changes to the
Description and Policy/Procedure sections can be made in the
Application Setup section.
This account has been Prepared, Approved
and Reviewed as noted by the appropriate staff members. The
Supporting Document that substantiates the Subledger Balance has
been attached. The detail of the reconciling item is
shown below.
This item has an Open Date of 12/31/2010, and the Close Date is
blank. When the reconciliation is opened to perform the 1/31/2011
reconciliation, this item will appear. If the item has been recorded
in the General Ledger during January, you will be able to enter a
Close Date with a January 2011 date, and the item will disappear
from the 1/31/2011 reconciliation. The supporting document has been
attached.
This is a Timing Item. In the normal
course of accounting activity this amount would eventually be
recorded in the General Ledger. The item was recorded in this
accounting period to provide accurate matching of the expense in the
period for which it was incurred. However, the item was recorded in
the wrong account. Thus an adjustment in January is necessary.
This particular account is reconciled with no Unidentified
Difference. The journal entry mentioned in the Reconciling Items is
clearly an error, and has been identified appropriately. As
always, the important thing now is to make sure the error is
corrected, not just documented.
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