Question

Why does the AP Aging report not tie to the balance sheet?

Solution

The AP Aging report and the AP balance sheet account (or the sum of the AP accounts if your company has more than one AP account) should always tie to each other. Unanet will not allow them to go out of balance unless the responsible personnel perform data entry activity outside of the normal prescribed procedures. Note possible causes and solutions below.


If AP Aging > Balance Sheet:

Common CauseSolution
A vendor invoice was posted prior to the General Ledger Effective Date or with the General Ledger disabled.Review Vendor Invoices Post Dates via Financials > Accounts Payable > Vendor Invoices and compare to General Ledger properties audit trail. 
A General Journal Entry was made debiting AP.Review the General Ledger Details report for the AP account for the affected period to see if a General Journal entry was made. If so, reverse the General Journal entry and properly record the transaction.

Prior to the Go Live date, the AP Aging and General Ledger accounts were not properly reconciled.

Reconcile the aging and general ledger as of the Go Live date and make any required adjustments.



If AP Aging < Balance Sheet:

Common CauseSolution
A vendor payment was posted prior to the General Ledger Effective Date or with the General Ledger disabled.Review Vendor Payments Post Dates via Financials > Accounts Payable > Vendor Payments and compare to General Ledger properties audit trail.
A General Journal Entry was made crediting AP.Review the General Ledger details report for the Accounts Payable account for the affected period to see if a General Journal entry was made. If so, reverse the General Journal entry and properly record the transaction.
Month-end accruals of AP via Journal Entry are recorded to the AP account. Create a separate AP account specifically for accrual purposes.
Payments to employees are recorded through AP and the costs are posted in one period but the vendor invoices are not posted/paid in the same period.Create a separate AP account for payments to employees so that the AP account will not be affected when the costs posting and vendor invoices posting occur in different periods.  



Additional Information

KC - FAQ - Why does the AR Aging report not tie to the balance sheet?