Differences

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--- faq:accounts_receivable_reconciliation [2007/09/06 13:27 (17 years ago)] – grammar edits andrew
+++ faq:accounts_receivable_reconciliation [2008/02/06 16:26 (16 years ago)] (current) – cliff
@@ Line 9: / Line 9: @@
   * Run a **Fix Balance Errors** routine on the AR account to make sure it is in check
   * Go back to the first item in this list and start again, sometimes going back and doing the same thing will help you catch something you missed.
+==== My previous year is closed and I don't want to touch it ====
+There are some situations where the previous years are not going to get touched. In this case we must assume that the Aged AR was reconciled at that point. Since we are not going back into the previous year to reconcile it, we need to make an adjustment to bring the previous year end balance in the Accounts Receivable general ledger account inline with the Accounts Receivable listing.
+  * Run the aged AR report for last year end
+  * Run the Trial Balance or Balance Sheet for last year end
+  * The difference needs to be removed. Adjust the balance of the AR GL to match the AR listing
+  * In order to do the entry above we put the other side of the GL entry to 2999 for your accountant to distribute
+This work has put us in a position to focus on the current year. The one thing this method doesn't ensure for is continuity from last years Aged AR balance. In order to ensure continuity between the two years we need to check to make sure the Aged AR report for the last year end still matches the printout from last year. If not then the best fix would be to reconcile the individual balances and find any offending entries and make sure they are recorded correctly. If for example we had an entry for December 31st that did not show in your last year end the entry must be dated in the next year.
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