Accounts Receivable

This account reconciliation is an Asset 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 billing system report titled "Month End Aged Trial Balance".

Some integrated accounting systems may have the billing 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 detailed description above about how the normal journal entries are made and the company policy that states very clearly how the report needed for the reconciliation can be found or created. This is important in keeping the documentation of your accounting procedures up to date. Changes to the Description and Policy/Procedure sections can be made in the Application Setup section.

The reconciliation 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 item is note as a Required Adjustment. A journal entry should have been made to correct this item prior to publishing the company's financial statements.

This particular account is reconciled with no Unidentified Difference. The journal entry mentioned in the Reconciling Items is clearly an error, but it has been identified and documented.

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