The reconciliation of the Accounts Receivable Aging report to the General Ledger must be performed as part of closing and/or reconciling the accounting period. The following procedures are intended to be general guidelines.
The basic procedures for reconciling the Accounts Receivable Aging to the General Ledger are:
Verify that the reports were reconciled in previous periods.
Post all Cash Receipts.
Post all Billing Transactions.
Freeze the General Ledger.
Print the Accounts Receivable Aging report.
Print the Trial Balance report.
Compare the Accounts Receivable Aging report and the Trial Balance report.
Make any necessary adjustments to correct differences.
Reprint the Accounts Receivable Aging report and the Trial Balance report.
Review your results.
If reports reconcile, retain them for future reference.
If reports still do not reconcile, call Costpoint general support.
If the reports were out of balance at the beginning of the period that you are trying to reconcile, the entry that threw them off is in an earlier period. Print the reports for earlier periods until you find the most recent period that did balance. Work through this process for each period that's out of balance until you have worked your way back to the present.
Make sure that you entered and posted all the cash receipts for the accounting period that you are reconciling.
Make sure that you entered and posted all billing transactions for the accounting period that you are reconciling.
Immediately after you post all cash receipts and billing transactions for the accounting period that you are reconciling, freeze the General Ledger. You can notify all staff that no further transactions can be posted to the period being reconciled, or you can disable data entry in the system. You disable data entry to individual modules in the Entry Edit Status subtask of the Manage Subperiods or the Manage Accounting Periods screen in the General Ledger module. When you disable data entry, no new entries are allowed in the period.
Print the Accounts Receivable Aging Report after you post billing transactions and cash receipts for the accounting period that you are reconciling. Always print this report as part of the closing process for each accounting period as support for billed accounts receivable. To reconcile by account, select the following options on the Print Accounts Receivable Aging Report screen:
In the Primary Sort group box, select Account in the Select By field.
Select All as the Range Option.
In the Date to Age by field, enter the accounting period ending date that you are reconciling.
In Account Level ___ and below, enter 1. This means that all lower levels of the account will be rolled up to the top level.
In Organization Level ___ and below, enter 1. This means that all lower levels of the organizations will be rolled up to the top level.
You can print the report by invoice date or due date.
It is not necessary to edit the headings.
In the Period group box, the Fiscal Year, Period, and Subperiod should match the accounting period that you are reconciling.
In the General Ledger module, print the Trial Balance report and review the ending balances of the Accounts Receivable accounts. Compare these ending balances to the amounts on the Accounts Receivable Aging report. Select the following options on the Print Trial Balance Report screen:
In the Select Accounts group box, in the Range Option field, select All or Range. You can print the entire trial balance or just select a range of accounts that include Billed Accounts Receivable.
In Include Level ___ and below, enter 1. This means that all lower levels of the account will be rolled up to the top level. You should print the report at the same level that the Accounts Receivable Aging was printed.
Select the Page Break check box if you want a page break after each account.
In the Select Grouping group box, choose Organization in the Select By drop-down list.
Select All in the Range Option drop-down list.
In Include Level ___ and below, enter 1. All lower levels of the Organization will be rolled up to the top level. You should print the report at the same level that the Accounts Receivable Aging was printed.
Sort by Account.
In the Select Ending Period group box, the Fiscal Year and Period should match the accounting period that you are reconciling.
Do NOT select the Amounts in Thousands check box.
Select the All Detail check box to print all detail at the account/organization level.
Compare the amounts on the Accounts Receivable Aging Report by Account to the ending balances of the Accounts Receivable that appear on the Trial Balance. The two should be the same. If you discover an account balance that does not match the amount on the Accounts Receivable Aging Report, print the General Ledger Detail of that account. Select the following options on the Print General Ledger Detail Report screen:
In the Select Accounts group box, select One in the Range Option drop-down list. This option prints the General Ledger Detail information for a single account
In Include Level ___ and below, enter 1. This is the highest level of the account. If you want to see the General Ledger Detail at a lower level, indicate that here. For example, you have four levels for your Accounts Receivable account. You may want to see the General Ledger Detail at level four. Each level from level four down to level one will be printed. (Keep in mind that you should print the General Ledger Detail at the same level that you printed the Accounts Receivable Aging Report.)
Review the General Ledger Detail Report. There should be amounts next to the field labeled Cash Receipt. These transactions are from Cash Receipt Journal postings. Amounts in the Invoice field come from Billing Journal postings. There should not be any amounts next to Journal Entry or Voucher. If there are amounts in these fields, you may have discovered why the reports are not in balance. When Journal Entries are posted to an Accounts Receivable account, the Manage Accounts Receivable History screen is not updated.
If an amount is found in the Journal Entry field, there are two ways to make a correction:
Using the Enter JEs screen in the General Ledger module, make a journal entry that backs out the original journal entry. Post it to the accounting period that you are attempting to reconcile. Then go to the appropriate screen to do your transaction. If this is a cash transaction, go to the Manage Cash Receipts screen in Costpoint Accounts Receivable. Enter and post the cash receipt. If the transaction is for billing, then go to the appropriate billing screen and enter the bill (use the Manage Standard Bills, Manage Progress Payment Bills, Manage Customer Product Bills, Manage Project Product Bills, Manage Manual Bills, or Manage Milestone Percent Complete Bills screens in the Billing module). Print the bill and post.
If you need to update customer or project information, go to the Manage Accounts Receivable History screen, and enter a new line for the detail that relates to the journal entry.
If there is an amount in the Voucher field, the source of this amount came from an Accounts Payable voucher. There should not be activity in an Accounts Receivable account that has come from Accounts Payable. We recommend the following procedure:
Enter a correcting voucher on the Manage Accounts Payable Vouchers screen in the Accounts Payable module and post it to the accounting period that you are reconciling. If this is a cash transaction, go to the Manage Cash Receipts screen. Enter and post the cash receipts. If the transaction is billing related, go to the appropriate billing screen, and enter the bill (use the Manage Standard Bills, Manage Progress Payment Billings, Manage Customer Product Bills, Manage Project Product Bills, Manage Manual Bills, or Manage Milestone Percent Complete Bills screens). Print the bill and post. We do not recommend that you manually update the Accounts Receivable History screens.
If the amounts on the Accounts Receivable Aging Report are higher than the General Ledger balances, there may be records in the Maintain Customer Accounts Receivable History or Maintain Project Accounts Receivable History screens that were manually entered. When you add any lines in the history screens, the General Ledger is not updated. If this is the situation, you have two ways to correct the imbalance:
On the Enter JEs screen in Costpoint General Ledger, post a Journal Entry to record the invoice. The accounts that you will use are the Accounts Receivable billed receivable account and the unbilled receivable account. You must manually update the Manage Billing History screen. You also must update the Manage Closed Billing Detail screen if the invoice information has not yet been recorded there.
The method that Deltek recommends to correct this imbalance is to delete the lines in the Accounts Receivable History screens. Enter the bill in the appropriate billing screen (use the Manage Standard Bills, Manage Progress Payment Billings, Manage Customer Product Bills, Manage Project Product Bills, Manage Manual Bills, or Manage Milestone Percent Complete Bills screens). Post the Billing Journal.
Reprint the Accounts Receivable Aging Report and Trial Balance.
There may be other reasons why the Accounts Receivable Aging Report and the General Ledger do not agree. The two may not reconcile if the G/L balances and the Accounts Receivable history screens were not initialized with the correct amounts.
File the reconciling Accounts Receivable Aging and Trial Balance reports for future reference.
Call Deltek Costpoint general support.