Prepaid Rent

This account reconciliation is an Asset account type and a List reconciliation type. This type of reconciliation allows you to make a list of the amounts that make up the account balance.

If your company has a complex inventory, you would probably have a specialized accounting system for inventory and would use a Sub-Ledger Match account type. If you do significant inventory calculations manually, using an Excel worksheet for example, you could still use the Sub-Ledger Match and input the total from your worksheet as the Subledger balance.

This example shows how you can use the List reconciliation type for inventory items. This would probably be most useful for something like a supplies inventory where you have only a few items and the calculations are not complex.

The reconciliation has been Prepared, Approved and Reviewed as noted by the appropriate staff members. Here is one the Reconciling Item that makes up the account balance for Prepaid Rent.

This item has an Open Date of 6/27/2010, and the Close Date is blank. When the reconciliation is opened to perform the 1/31/2011 reconciliation, this item will appear. It will continue to appear until it is closed. When the monthly rent amount changes in June of 2011 based on the annual amount stated in the lease, this reconciling item should be closed and a new reconciling item set up in the amount of the new monthly rental amount.

This particular account is reconciled with no Unidentified Difference. You can see that the Comment adds a level of responsibility identification to this particular reconciliation.

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