Accounts Payable (AP) Out of Balance

Accounts Payable Out of Balance

The balance of the Accounts Payable account on your Balance Sheet should be exactly the same
as the amount in the Total Due field on your Payables Reconciliation Report for the same date.

Here are some reasons why you are out of balance:

• The Accounts Payable account was used as the allocation account in any transaction other than a purchase transaction (e.g., check (CD), deposit (CR) or general journal (GJ) entry).
• The Accounts Payable account was used as the allocation account on a purchase transaction.
• Recently started a new fiscal year.
• A Vendor pre-payment exists, so AP will be Out of Balance until a bill is created.
• Incorrect Linked Accounts
• Incorrect Item accounts

To find out whether a transaction was applied to the Accounts Payable account:

• Click Find Transactions at any Command Center and select the Account tab.
• Enter the Accounts Payable account number and a date range that includes all possible transactions (e.g., 1/1/00 to 12/31/9999). All transactions will appear in the list.
• If any of transaction shows a GJ (General Journal) in the Src column, delete or reverse the General Journal entries (unless they were adjustments for your opening Accounts Payable balance) and reenter the transactions in the purchases window.

To find out whether you've entered Accounts Payable as the allocation account on an purchase order:

• Go to Reports-->Index to Reports-->Accounts.
• Highlight the Trial Balance Detail Report and then click on the Customize option.
• In the Accounts dropdown, select your Accounts Payable account number, and a long date range, (e.g., 1/1/02-12/31/9999).
• Click Ok and then Display.
• Look for any one transaction that debits and then credits the Accounts Payables account.

Recently started a new fiscal year:

• If you have a purchase order dated in FY 2009 (11/30/09) but the payment isn’t made until FY 2010 (1/20/10) and the Start A New Year was processed (3/15/10). The purchase order that refers to that vendor payment is no longer on file (however, once you run the Payables Reconciliation report for, lets say 3/30/10 you will be back in balance).

Reports:

• The Exceptions reports are indispensible for troubleshooting these issues. The Exceptions Purchases Reconciliation report is located under the heading of Exceptions in the Account section (Accounts tab) of the List of Reports.
• The Trial Balance Detail report is also comprehensive and useful.

Warning:

• Historical Purchases and Debit Memos will debit and credit your Accounts Payables account, however, these transactions are correct. Do not remove them.

Notes:

• The Aged Payables report shows all transactions regardless of the date entered as the Aging Date, and their age from the Aging Date.
• The Payables Reconciliation report shows transactions up to the date entered as the Aging Date.