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Accounts Receivable Reconciliation

How can a user reconcile an Accounts Receivable balance? 

Resolution: 

Ajera automatically creates financial entries to the Accounts Receivable account when a user performs tasks through these menu options: 

• Manage > Client Invoices
• Manage > Finance Charges
• Manage > Client Receipts

Selecting the Accounts Receivable account when working in areas of Ajera other than those listed above (such as Manage > Journal Entries) causes a Client Invoice Aging report and Trial Balance report to be out of balance.

Print the Client Invoice Aging report as follows: 

1. Reports > Client > Client Invoice Aging
2. Set the As of Date date to the same month-end date that was used to produce the Trial Balance report.
3. In the Customize options, in the Date Basis field, select Accounting date.
4. Compare the Client Invoice Aging report to the Trial Balance report. If in balance, the Report Total in the Outstanding column of the Client Invoice Aging report will equal the Current Balance for the Accounts Receivable account on the Trial Balance report.

If the Accounts Receivable balance in the Trial Balance account does not equal the Outstanding total on the Client Invoice Aging report, follow these steps:

1. Ensure beginning balances are in balance
2. Print the Beginning Balance Control Account Verification report.
3. Click Setup > Company > Beginning Balances >  Trial Balance > Reports > Beginning Balance Control Account Verification.
4. Compare the amounts listed in the Trial Balance column with the Entered column for the Accounts Receivable account. If there is a difference or noted on the report, the user must determine which amount is correct and change the amount that is incorrect.
5. If the Trial Balance amount is incorrect, change the amount entered in the Beginning Balance Trial Balance in Setup > Company > Beginning Balances > Trial Balance.
6. If the Entered amount is incorrect, change the amount entered in the Unpaid Client Invoices in Setup > Company > Beginning Balances > Unpaid Client Invoices.

To determine if any journal or bank entries need to be adjusted: 

1. Print the Ledger for the Accounts Receivable account. Click Reports > Financial > Ledger, and select the month that you are reconciling
2. Drill down on the Accounts Receivable account. Identify any items that have a description other than Invoice, Cash Receipt, or Finance Charge.
3. Users can review journal entries in Manage > Journal Entries.
4. Users can review bank entries in Manage > Bank Register > Register tab.

Because the Accounts Receivable account is a control account, users must determine why entries were made and if they were made in error.

1. Verify miscellaneous receipts
   1. Print the Client Receipt Register Reports > Client > Client Receipt Register
   2. Click Customize.
   3. Select the Print miscellaneous check box.
   4. Clear the Use drill down check box.
   5. Review the report to determine if any Miscellaneous Receipts were posted to the Accounts Receivable account or any other control account. Because the Accounts Receivable account is a control account, you must determine why entries were made and adjust any erroneous entries.
2. Check if the out of balance clears out as of a future date. If the out of balance clears as of the current date or a future date, it may be caused by the following scenario:
   • A Time & Expense invoice is finalized, then later Reissued with a later accounting date.
   • • For example, the original accounting date was 1/31/17, and the reissue accounting date was 2/1/17
   • During the reissue process, some billable entries were removed from the invoice to reduce the invoice amount.
   • In this scenario, the billable entries that were removed from the invoice will drop off the Client Invoice Aging report as of the original accounting date of the invoice, bringing the report out of balance with the Ledger for the dates between the original accounting date and reissue accounting date.
   • If this scenario applies to you, please reach out to Support to discuss possible workarounds to avoid future occurrences of this issue

If these steps do not resolve the out-of-balance situation, contact an Ajera consultant to discuss having Deltek analyze the data.