When AP is an Accrual system, as part of month-end processing you should match the balance on the Open Items by Date to the balance of the Accounts Payable account on the Balance Sheet.
Several things can cause AP to be out of balance:
- GJ Entry made to the Accounts Payable Account (This should never be done.); A check expensed to the Accounts Payable Account rather than an Expense account;
- The Distribution Date is before the Invoice Date, causing the Open Items by Date report to be incorrect.
If AP is out of balance, first discover the month the account has gone out of balance.
Run the Balance Sheet and Open Items by Date reports for each prior month until you find
when the problem occurred.
Preview the View Accounts report for the AP account and Search (binoculars icon) for the amount or GJ journal code.
For a long-standing problem, you may export the View Accounts report to Excel. Choose the
By Date option and start from the beginning of using GL to the current date.
- Sort the worksheet by check number.
- Look for entries with no check number and match them to the Open Items by Date report.
- Also look for entries that have been reversed or that have not been paid yet. The remaining amount may be the cause of the out-of-balance condition.
- If you have not yet found the cause of the problem, insert a column to the right of the check number. In that column enter a formula on the first record with a check to display the amount of that check(e.g., =G48). In the next row, the formula should combine the cell right above this one with the amount of this check (e.g., =I48 + G49). Then copy this down in the column. All amounts should be zero. If not, the item is a reason for being out of balance.
Finally, make new correcting entries to bring AP into balance.
NOTE: If you are unable to locate and resolve your out-of-balance condition, contact Logos
Professional Services. A technician will work with you to bring your AP back into balance. Logos
Professional Services is available upon request for a fee.