Accounts Payable Aged Analysis
Will Everett
affecting the Balance Sheet and or the P & L?
The detail aged report differs from the Balance Sheet. The same thing is
also in the aged Accounts Receivable.
We are using PCA 2003
Thanks in Advance
Will Everett
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Chad A Gross
> Is there a way to correct incorrect balances in this report without
> affecting the Balance Sheet and or the P & L?
>
First, to make sure I understand your question, you're saying that your
Accounts Payable amount on your Balance Sheet does not match the total
amount on your Aged Payables report.
If that is in fact the case, the short answer to your question is - probably
not.
But this is a loaded question. First of all - does your Accounts Payable
G/L balance match your Aged Payables report? (it should) . . . If it does
match - then no. You want these to match, so any open vendor invoices you
delete will lower both your Aged Payables report & your Accounts Payable G/L
(thus affecting the Balance Sheet & Income Statement)
If your Accounts Payable G/L does not match your Aged Payables report, then
you need to determine whether your Aged Payables report or your AP G/L
balance is correct. (and it is possible that neither one is). If your Aged
Payables report is correct, then you will need to adjust your AP G/L to
match (and thus affect the Balance Sheet & Income Statement). If you
determine that your G/L account balance is correct, then you will need to
determine which vendor invoices need to be deleted or added so that
everything balances. For these not to match, one of two things has
happened: First, a vendor invoice was posted to the wrong G/L (thus
resulting in a Aged Payables report that has a higher total than your AP G/L
if the invoice was a purchase, or a lower Aged Payables if the invoice was a
credit) or some other transaction (general journal entry, cash disbursement,
etc.) has been posted to the AP G/L. If it was me, I would start by looking
at these two items for each accounting period to determine when the
discrepancy first appeared. Then you can open your Purchase Journal for
that period and make sure that each purchase invoice was posted to your AP
account. (Also make sure that there are no items listed on any invoice that
were posted to the AP account - basically in the Purchase Journal, your AP
account should appear only once for each invoice). Correct any invoices you
find which were not posted to the AP account. If you still have a
discrepancy, then open your AP G/L account for that period and look for any
items listed that don't belong (which would be anything referencing a
journal other than purchases journal (PJ) or cash disbursements journal
(CDJ). When you get your Aged Payables report to match your AP G/L account,
move to the next month & repeat the process if necessary.
Basically, right now I would be more concerned with making sure my Aged
Payables report was reconciled against vendor statements, and that the AP
G/L account matched that report. It is more important to have accurate
information that try to fudge reports to match the amount currently listed
on your Balance Sheet. Of course, this gets tricky if you've recently
completed your fiscal year and used the amounts on the Balance Sheet &
Income Statement for your tax returns - in which case I would still take the
time to find the discrepancies - but not change them until you talk to you
accountant.
> The detail aged report differs from the Balance Sheet. The same thing is
> also in the aged Accounts Receivable.
>
Same as the A/P situation I outlined above . . .
I discovered this same problem with my books about a year after switching to
Peachtree - and traced my problem back to a handful of inventory items that
were set up wrong & were posting COGS info to my A/P account . . . Call me
crazy, but I have never been fond of just posting adjusting entries to get
accounts to balance - I actually dig through the G/L and journals line by
line to find where the errors occurred - and determine why they happened.
While it is time consuming, it taught me a lot about what accounts are
affected by different transactions, and where to look when I find a
discrepancy. One of the biggest things I have learned using Peachtree is
not to trust your reports blindly. Always double-check & cross-reference
your key reports to G/L accounts. Part of my month-end procedures each
month includes comparing my Accounts Payable G/L to my Aged Payables report,
& my Accounts Receivables G/L to my Aged Receivables report to make sure
they match. If they don't, I know the error has to be in the current month,
as they balanced the previous month. In addition, I always make sure the
941 total on my Tax Liability report matches my Federal Payroll Taxes
Payable G/L account before I make my deposit. Same goes for State Income
Tax, Unemployment Taxes, Sales Tax, etc.
HTH
Chad
Will Everett
Will Everett
"Chad A Gross" <b1shop@NO_hotmail_SPAM.com> wrote in message
news:zd_89.141680$5E1....@news2.central.cox.net...
Mike Lewis
"Will Everett" <tuc...@dakotacom.net> wrote in message
news:3d64484a$1...@corp.newsgroups.com...
> Is there a way to correct incorrect balances in this report without
> affecting the Balance Sheet and or the P & L?
>
> The detail aged report differs from the Balance Sheet. The same thing is
> also in the aged Accounts Receivable.
>
> We are using PCA 2003
> Thanks in Advance
If the AP doesn't equal the GL, something is wrong. Run a detail GL only on
your AP account and see if some entry other than from AP has hit this
accout.
mike