Debugging Debtors and Creditors Reports: Difference between revisions
Jump to navigation
Jump to search
No edit summary |
No edit summary |
||
Line 10: | Line 10: | ||
*** Ensure that the EOY process has been completed for the account | *** Ensure that the EOY process has been completed for the account | ||
*** Ensure it matches the sum of ledger transactions for the current year including the EOY starting balance. | *** Ensure it matches the sum of ledger transactions for the current year including the EOY starting balance. | ||
** Check the Diff and Error amounts | |||
*** The Error amount should be $0. If not: | |||
**** A one-off general journal may need to be applied to fix the account balance. | |||
**** The adjustments may be missing the reporting of a bad posting. This can be issolated by | |||
***** Running the reconciliation for sequential days until the Error amount changes. | |||
***** Review ledger transactions on that day to see which transaction was missed. | |||
***** Change the adjustments report to include the missed transaction situation. The Error should be zero unless there are further problems. | |||
General Checks | General Checks |
Revision as of 10:18, 16 March 2021
Follow these steps to validate and debug problems with debtors and creditors reports.
- Check that totals of bill/invoice header and line balances match each other.
- If they don't match, find specific transactions that do not match and review the data. The calculation of balance on either the header or the line may be incorrect.
- Run the reconcilation
- Check that the total "Outstanding" amount matches:
- Creditors: The sum of balances on bill headers/lines including -ve balances for credit notes.
- Debtors: The sum of balances on invoice headers/lines including -ve balances for credit notes.
- Check the ledger total
- Ensure that the EOY process has been completed for the account
- Ensure it matches the sum of ledger transactions for the current year including the EOY starting balance.
- Check the Diff and Error amounts
- The Error amount should be $0. If not:
- A one-off general journal may need to be applied to fix the account balance.
- The adjustments may be missing the reporting of a bad posting. This can be issolated by
- Running the reconciliation for sequential days until the Error amount changes.
- Review ledger transactions on that day to see which transaction was missed.
- Change the adjustments report to include the missed transaction situation. The Error should be zero unless there are further problems.
- The Error amount should be $0. If not:
- Check that the total "Outstanding" amount matches:
General Checks
- Ensure that no invoice/bill line is over-paid. Problems can include
- Duplicated allocations
- Migrated data from old systems.
- All funds being allocated to one invoice/bill line which overpays it doesn't pay other lines. Overall this leaves the invoice/bill fully paid, but the lines are not correctly paid. This situation will be reported as overpaid and lines with remaining balances.
- Ensure that the line status of invoices/bills matches the balance owing.
- Ensure that the header status of invoices/bills matches the associated line status values.
- Ensure that unposted transactions don't have any net ledger transactions.
Common Posting Problems (reported as adjustments)
- General Journal (not unposting) that changes the account balance without a corresponding invoice/bill debt
- General Journal with no linked source transaction
- Incorrect accounting group (i.e. posting a deposit to a creditor control account)
- Posting to the control account (Setting the account of bill/invoice lines to the control account)
- Postings that cannot be matched to source transactions
- Transactions including deposits/cheques (not credit notes) with remaining unallocated funds
- Posting to control account other than the control account of the current transaction (impacts balancing of the other account)
- Postings of +ve and -ve amounts for allocation journals to the same (control) account. These should post to different accounts or not be created.