Balancing the Accounts Payable Control Account

This procedure is used to verify that the General Ledger Accounts Payable Control Account Balance Matches the Open Accounts Payable Invoice Balances.

1.  Balance the sub-ledger

2.  Compare the ending sub-ledger total to the ending total(s) in the accounts payable control account balance in the general ledger as of the time the sub-ledger report was produced.  The totals should match.  If they do not then the problem is due to one of the following.

•      The beginning sub-ledger balance did not agree with the beginning general ledger balance(s) in the accounts payable control accounts in the GL.  Re-verify that the beginning sub ledger on the system matched the beginning balances in GL accounts payable control account at that point in time.

•      Manual Journal entries have been posted to the control account.  Re-verify that no manual journal entries have been made (except to account for beginning balances), or that any accrual entries (posting accrual entries directly to the control account is not recommended) have been reversed.

•      Timing problems.  Timing problems occur when an invoice is posted to an incorrect period.  For example if an invoice is posted on July 1 (normally period 7) and it is accidentally posted to period 6, this will cause both period 6 and period 7 to be out of balance for the amount of the invoice. and  or future period  error refers

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