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General Ledger Reconciliation for Month Ending ___/___/____
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1.
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Before beginning any reconciliation, be sure to make a backup of your data and then index the company tables. The time required to create the selected index files varies with the type of file and the number of records in the file. NEVER TURN OFF OR RESTART YOUR COMPUTER DURING THE INDEX PROCESS, OTHERWISE THE DATA FILES MAY BECOME CORRUPTED. If the system cannot re-index the files, an error message will be displayed. Select the Print Button for a hard copy of the progress information and call AccuBuild's technical support staff for assistance.
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2.
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Run all of the integrity tests within each module. Be sure to run the 'update' options found in the integrity tests menu (with the exception of the Update Prior Years Revenue option in the Job Cost Module) before performing the 'All Tests' option. Again, if any errors are encountered, please contact AccuBuild for assistance before proceeding to the next step.
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3.
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The report totals on the last page of the General Ledger Trial Balance report should be zero for all four columns. If these totals are not zero, then the debits and credits are out of balance in the general ledger and need to be corrected.
Hint: Print the G/L Detail Report by Batch Order (summary option) for the period to determine which batch is out of balance. Out of balance batches may be caused by incomplete batches which should probably be deleted (refer to Step 2) or by posting a single-sided general journal entry which may need to be reversed.
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4.
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Reconcile all bank accounts to the corresponding account balances in the General Ledger.
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5.
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Reconcile the Accounts Receivable Aging Schedule to the corresponding account(s) in the General Ledger Trial Balance. The aging schedule prints a total on the last page of the report called Total Balance Due, and this is the figure to compare to the General Ledger. The AccuBuild system uses up to 3 different account numbers for receivable amounts depending on the setup in the accounts receivable properties and the job cost properties.
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Account _______.______ - A/R - Current
Account _______.______ - A/R - Retention
Account _______.______ - A/R - Misc (Other)
Total A/R from General Ledger Balances:
A/R Aging - Total Balance Due:
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______________ (G/L Trial Balance)
______________ (G/L Trial Balance)
______________ (G/L Trial Balance)
______________ (Total all accounts)
______________ (A/R Aging Schedule)
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Note: If you have a separate account in the General Ledger for the A/R - Retention account, then this account should represent the amount of retention that has been earned and withheld for all projects to date. Once the retention is billed in the system, the amount is automatically moved to the A/R - Current account. To verify the amount of unbilled retention on the G/L Trial Balance, run the Contract Status Information report in the job cost system under the Contract Status Reports option. Be sure to check the Include "Other" Jobs option so that all jobs are included in the report. Once the report is complete, the total amount of Unbilled Retention from this report can be reconciled to the A/R - Retention account on the trial balance.
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Hint #1: If the accounts receivable doesn't reconcile, then review the general ledger detail report to see what type of entries have been posted to the a/r account(s). The SC column displays the source code for each entry. The only type of entries that should be posted to any a/r account are sales invoices (SC 20, 30) and cash receipts (SC 35, 36, 38). Any other type of entry (ie. SC 50 General Journal) will NOT affect the a/r aging schedule and, therefore, the two reports would not reconcile.
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Hint #2: If the discrepancy is not caused by the issue in Hint #1, then an invoice or a cash receipt entry may have been debited and credited to the same a/r account. The net affect would be zero in the general ledger but the aging schedule would reflect the entry. Print the Sales Journal Report and the Cash Receipts Report, both are located in the Receivables module, to review the g/l accounts used for each entry.
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6.
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Reconcile the Accounts Payable Aging Schedule to the corresponding account(s) in the General Ledger Trial Balance. The aging schedule prints a bottom line total on the last page of the report under the Gross column and this amount should be in balance with the general ledger account(s). AccuBuild uses up to 3 different account numbers for payable amounts depending on the setup in the accounts payable properties and the job cost properties.
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Account _______.______- A/P - Regular
Account _______.______- A/P – Subs
Account _______.______ - A/P – Retention
Total A/P from General Ledger Balances:
A/P Aging – Gross Column:
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______________ (G/L Trial Balance)
______________ (G/L Trial Balance)
______________ (G/L Trial Balance)
______________ (Total all accounts)
______________ (A/P Aging Schedule)
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Hint #1: If the accounts payable doesn't reconcile, then review the general ledger detail report to see what type of entries have been posted to the a/p account(s). The SC column displays the source code for each entry. The only type of entries that should be posted to any a/p account are payable invoices (SC 40, 41, 43), cash disbursements (SC 45), and joint check cash receipts (36). Any other type of entry (ie. SC 50 General Journal) will NOT affect the a/p aging schedule and, therefore, the two reports would not reconcile.
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Hint #2: If the discrepancy is not caused by an erroneous source code, then a payable invoice, cash disbursement or joint check cash receipt entry may have been debited and credited to the same a/p account. The net affect would be zero in the general ledger but the aging schedule would reflect the entry. Print the Purchase Journal Report and the Cash Detail Report (Check Order – Detail), both are located in the Payables module, to review the g/l accounts used for each entry. Joint check cash receipt entries can be reviewed on the Cash Receipts Report located in the Receivables module.
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Hint #3: Print the A/P Aging Error Report from the Reports > Payables menu. This report checks for problems with the unpaid invoice balance. This report reconstructs each payable invoice balance by rebuilding the payable amounts and subtracting the unpaid amounts on each invoice and comparing the computed balance to the current open balance on the invoice (if any). This can help to pinpoint issues when they arise which can happen with batch log editing.
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7.
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The job cost and the general ledger should be reconciled for sales, direct costs and accounts receivable. Begin by printing the Contract Status Spreadsheet Report in the Job Cost system. Be sure to check the 'Include "Other" Jobs option so that all jobs are included in the report. Once the report is complete, the report totals can be reconciled to the general ledger totals as follows:
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Account _________.______ - A/R - Current
Account _________.______ - A/R - Retention
Account _________.______ - A/R - Misc
Total A/R from General Ledger Balances:
Spreadsheet Current A/R Total (B8):
Remember to exclude non-job invoices from the a/r aging schedule when comparing to the Job Spreadsheet report.
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_____________ (G/L Trial Balance)
_____________ (G/L Trial Balance)
_____________ (G/L Trial Balance)
_____________ (Total all accounts)
_____________ (Spreadsheet)
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Construction Income (Sales) Account(s):
Spreadsheet Curr Year Billings Total (B3):
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_____________ (Total all accounts)
_____________ (Spreadsheet)
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The over/under billing adjustments should be made with a general journal entry and should not be coded to a job. A journal entry is considered a cost when coded to a job/phase so only the general ledger accounts should be entered on the transaction. With that in mind, if you code your over/under billing adjustment to your normal income/sales account, then there would be a discrepancy between the general ledger and the Current Year Billings total (B3). Therefore, consider setting up a separate income account for the over/under billing adjustments so that it is easier to tie column B3 to the g/l.
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Direct Cost (Cost of Sales) Account(s):
Spreadsheet Curr Year Actual Costs (A6):
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____________ (Total all accounts)
_____________ (Spreadsheet)
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If the year to date expenses from the job schedules do not agree:
a.) Print the List of Linked Jobs in the Job Cost Reports to determine if a job is linked incorrectly. If a job is linked to an invalid job number, then the job will not be included in the job cost reports but the transactions will show up on the g/l reports.
b.) Print the Job Cost / General Ledger Comparison Report in the job cost reports menu. Run this report in G/L Account Order and be sure to enable the Account Totals Only option to get a summary total for each G/L account. Compare the year-to-date totals from this report with the year-to-date totals from the Trial Balance Report. If any differences are found, then run a general ledger detail report by account number order for the account(s) that are out of balance to troubleshoot the differences.
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8.
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If financial statements are being printed, then be sure to verify that the balance sheet is in balance (Total Assets = Total Liabilities + Total Capital). If the statement is not in balance, then a new account may have been added to the Chart of Accounts but not included in the financial statement format or an account may have been added more than once to the statement.
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