Accounts Payable Reconciliation

1. Start by making sure your beginning balance on this month trial balance is last months ending balance. If not keep going back each month until you find a month that balanced then focus on the first month the journal went out of balance.
2. Browse through your AP Journal listing and pay special attention to the comment field.   Check for any mispostings to the account such as journal entries or misposted receipts.  These can be reversed with a Journal entry.  Check to see if you have any AR coded to the AP account.  You may be able to edit the payable and change the account code.   
3. Move on to checking your debits and credits on your trial balance.

Debits

Debits to Accounts Payable come from AP checks that have been written.

Credits

Credits to Accounts Payable come from AP records posted to the AP file.

DEBITS OUT

 AP paid for the month:  File>Accounts Payable>AP Paid by Account Code or Check (select by account code for the month all account codes.)

 Compare this number to your trial debits column.

When Your Debits do not match:

• Make sure you do not have direct Journal postings.  If you do, research.  It probably does not belong here and can be reversed to correct with a Journal Entry.
• Make sure all paid AP posted to the journal.  Check the posting for your AP check runs. For example in the journal you will see check numbers 100 - 150 posted. Add all the entries that appear on the journal together. You will now want to go to Accounts Payable>A/P Reports>A/P Paid by Account Code or Check. Print the report for the range of checks and compare it to what the journal says. If the two reports do not match you may need to do a journal entry.
• If you are unable to find then print report (File>Accounts Payable>A/P Reports>A/P Invoice Listing)  Enter month, all stores, paid date, Paid and compare this to your debits in your Journal…… matching invoices from this report to your journal.

CREDITS OUT

AP entered for the month:  File>Accounts Payable >A/P Reports>Payables by Supplier. (Select by all payables, Invoice date, the month and all stores.)

 Compare to your trial credits Column.

When Your Credits do not match:

• Make sure you do not have direct Journal postings.  If you do, research.  It probably does not belong here and can be reversed to correct with a Journal Entry.
• Check to see that the A/P listing by G/L account code balance balances with the A/P listing by supplier (File>Accounts Payable>A/P Reports> A/P Invoice Listing).  Run the report for month by invoice date all status, and all stores.  
• If they don’t balance, then compare the two reports for missing invoices on the A/P by G/L account report. Go to File>Accounts Payable, Add/Edit Payables and search for the A/P record. Here you will find that the A/P has no journal distribution. Edit the record and enter in the correct G/L account code. If the system will not let you edit the A/P record, call RFMS to obtain an access code to use the utilities menu, A/P Edit routine.
• If still not found then time to compare both reports.