How to Reconcile Accounts

Reconciliation of accounts is a critical financial process that ensures the accuracy of your ledger balances by comparing internal records with external documentation. This guide explains how to reconcile various ledger accounts, including the Sales Ledger, Purchase Ledger, GANI, Parts Stock, and Work in Progress accounts.

1. Reconciling the Sales Ledger

To reconcile your Sales Ledger, follow these steps:

1. Run a Schedule for the Sales Ledger Control Account

   • Navigate to Main Menu > Accounts > Nominal Ledger > Reports > Schedule Nominal.
   • Select Nominal Code 0.0.60.1 and schedule by Sales Ledger Account Number for a future date.

2. Generate a Debtors List

   • Go to Main Menu > Accounts > Sales Ledger > Debtors.
   • Run the report for the same future date used in step 1.

3. Compare Reports

   • Ensure that the totals and individual account balances in both reports match.
   • If there are discrepancies, trace the differences and make corrections by posting a nominal journal.

Tip: When correcting specific account numbers, remember to schedule by account number and enter both the company number and account number (e.g., 010123).

2. Reconciling the Purchase Ledger

Follow these steps to reconcile your Purchase Ledger:

1. Run a Schedule for the Purchase Ledger Control Account

   • Navigate to Main Menu > Accounts > Nominal Ledger > Reports > Schedule Nominal.
   • Use Nominal Code 0.0.70.2 and schedule by Purchase Ledger Account Number for a future date.

2. Generate a Creditors List

   • Go to Main Menu > Accounts > Purchase Ledger > Creditors.
   • Run the report for the same future date used in step 1.

3. Compare Reports

   • The totals and balances of individual accounts should align.
   • Correct any discrepancies by posting a nominal journal.

3. Reconciling the Purchase Ledger GANI

Here’s how to reconcile the Purchase Ledger GANI account:

1. Run a Schedule for the GANI Control Account

   • Navigate to Main Menu > Accounts > Nominal Ledger > Reports > Schedule Nominal.
   • Select Nominal Code 0.0.70.8 and schedule by Purchase Ledger Account Number for a future date.

2. Generate a GANI List

   • Go to Main Menu > Accounts > Purchase Ledger > GANI.
   • Run the report for the same future date.

3. Compare Reports

   • The reports should match in terms of totals and account balances.
   • Correct any discrepancies by posting a nominal journal.

4. Reconciling Parts Stock

Unlike other ledgers, there is no nominal schedule available for the Parts Stock account. However, you can still reconcile the account as follows:

1. Compare Parts Stock Figures

   • Retrieve the Parts Stock figure from Nominal Account 1.10.60.80 (repeat for each branch if applicable).
   • Use the Parts Stock List in the Parts Manager's Toolkit. For this report, do not enter any dates for the "Sales from/to" or "Purchased from/to" fields.

2. Match Totals

   • Compare the Total Parts Stock Value (located on the far right-hand side of the report) with the nominal balance.
   • Note that minor differences are expected and considered normal.

5. Reconciling Work in Progress (WIP)

To reconcile your Work in Progress account, follow these steps:

1. Run a Schedule for the Work in Progress Account

   • Go to Main Menu > Accounts > Nominal Ledger > Reports > Schedule Nominal.
   • Schedule the report for Nominal Code 1.20.60.90 by Job Number for a future date. Repeat this process for each branch, if necessary.

2. Generate the Work in Progress Report

   • Navigate to Main Menu > Workshop > Service Managers Toolkit > Reports > WIP.
   • Ensure the "Exclude Invoiced Jobs" option is selected before running the report.

3. Reconcile Values

   • Compare the Parts Cost Value and Subcontract Cost on the WIP report with the nominal schedule.
   • Investigate and resolve any discrepancies.

Final Notes:

• When scheduling by account number, always input both the company and account numbers (e.g., 010123).
• If discrepancies are found during reconciliation, use nominal journals to adjust the balances.

By following these steps, you can efficiently reconcile your ledgers and ensure that your financial statements reflect accurate and up-to-date information.