How to Reconcile AP Aging to GL Sage 300

Pre-Reconciliation Steps

Before beginning the reconciliation process, several crucial preparations must be completed:

• Verify that all AP entries have been posted for the month • Ensure all subsidiary journals and registers are updated • Confirm the Daily Transaction Register has been updated to GL• Post all pending entries in both AP and GL modules

Accessing Essential Reports

AP Aging Report

To generate the AP aging report:

1. Navigate to Reports > Cash Management > Invoice Aging with Cutoff Date
2. Enter the appropriate aging date
3. Set aging basis to "accounting date" to match GL records
4. Consider retainage settings based on your configuration

GL Reports

Access the necessary GL reports through:

1. General Ledger > Main > Account Maintenance (Inquiry)
2. Select the AP account
3. Review the History tab to find the most current fiscal year balance

Reconciliation Process

Step 1: Verify GL Entry Settings

1. Navigate to File > Company Settings > AP Settings
2. Click GL Entry Settings button
3. Confirm correct account mappings for:
   • Regular AP accounts
   • Subcontract payable accounts (if separated)
   • Retainage accounts

Step 2: Compare Reports

The fundamental reconciliation involves comparing two key figures:

1. AP aging report balance
2. GL account balance for the corresponding period

If discrepancies exist, proceed with the following detailed investigation steps.

Investigating Discrepancies

Common Causes of Discrepancies

• Timing differences between document dates and posting dates • Incorrect GL account postings • Unposted transactions • Data corruption or system errors

Resolution Steps

Document Date vs. GL Date Analysis

1. Run the AP Trial Balance Report
2. Compare transaction dates with GL posting dates
3. Review any timing differences that may cause temporary discrepancies

Transaction Verification

1. Print GL Detail Report for the AP account
2. Review all entries to confirm they originated from AP or Purchase Order
3. Identify any direct GL entries that should have been processed through AP

Advanced Reconciliation Techniques

Infinite Date Comparison

This technique helps determine if discrepancies are timing-related:

1. Run AP Aging Report with a future date
2. Compare to the most future GL balance available
3. If these "infini-balances" match, differences are likely timing-related

Period-by-Period Analysis

When discrepancies persist:

1. Print reports for previous months using consistent dates
2. Track when the difference first appeared
3. Focus investigation on that specific period

Corrective Actions

Making Adjustments

When corrections are needed:

1. For AP discrepancies:
   • Adjust invoices as necessary
   • Create debit or credit memos
   • Update vendor statements
2. For GL discrepancies:
   • Create appropriate journal entries
   • Ensure proper dating of corrections
   • Document all adjustments for audit purposes

Best Practices

Regular Reconciliation Schedule

• Perform reconciliations monthly • Address discrepancies immediately • Maintain detailed documentation of the process • Keep audit trails of all adjustments made

Documentation Requirements

Maintain records of:

1. Original hard copies of registers
2. Journal entries
3. Daily Transaction Register
4. Adjustment documentation
5. Reconciliation worksheets

Prevention Strategies

System Setup

1. Maintain consistent GL account numbers in AP Division Maintenance
2. Regularly verify posting settings
3. Keep system dates synchronized
4. Monitor user permissions and access

Process Controls

1. Implement review procedures for all AP entries
2. Establish clear posting protocols
3. Regular staff training on proper procedures
4. Maintain separation of duties

Automated Solutions

Modern reconciliation can be enhanced through:

• Automated matching systems • Integrated AP/GL solutions • Real-time reconciliation tools • Exception reporting capabilities

Troubleshooting Common Issues

System-Related Problems

1. Data corruption resolution
2. Update sequence verification
3. System date alignment
4. Posting period consistency

Process-Related Issues

1. User training gaps
2. Procedural inconsistencies
3. Communication breakdowns
4. Timing misalignments

Maintaining Ongoing Balance

Monthly Procedures

1. Regular report generation and comparison
2. Prompt investigation of discrepancies
3. Timely adjustments
4. Documentation updates

Quality Control

1. Regular review of reconciliation procedures
2. Periodic audit of adjustment entries
3. System configuration verification
4. Staff performance monitoring

The successful reconciliation of AP aging to GL in Sage 300 requires attention to detail, consistent procedures, and proper documentation. By following these comprehensive guidelines, organizations can maintain accurate financial records and ensure the integrity of their accounting systems.

Sources: [1] https://www.youtube.com/watch?v=hIaHGxhBjfQ [2] https://www.dwdtechgroup.com/sage-100-mas-90-200/how-to-reconcile-sage-100-ar-or-ap-to-general-ledger/ [3] https://www.acutedata.com/sage-100-reconcile-accounts-payable-general-ledger/ [4] https://www.youtube.com/watch?v=2wVTal8_69o [5] https://softco.com/ie/glossary/accounts-payable-reconciliation/ [6] https://us-kb.sage.com/portal/app/portlets/results/botviewsolution.jsp?hypermediatext=null&solutionid=222924250017705 [7] https://cdn.na.sage.com/docs/en/customer/300erp/2022/open/Sage300_AccountsPayable_UsersGuide.pdf [8] https://www.airbase.com/glossary/reconciliation-in-the-ap-process [9] https://us-kb.sage.com/portal/app/portlets/results/botviewsolution.jsp?hypermediatext=null&solutionid=222924350018264