Q:  What formula should I use to balance AP to GL?

A:  Use the following as an example of how to balance. In this example, you are closing your accounting period for April and you have just posted your final invoice and payment batches to your general ledger system.

To reconcile your accounts payable activity for April, make the following calculation:

“Accounts Payable Trial Balance” as of March 31
+   “Posted Invoice Register” for the period between April 1 and April 30
–    “Posted Payment Register” for the period between April 1 and April 30
=   “Accounts Payable Trial Balance” as of April 30

Reconciling AP to GL is accomplished with the use of the following reports.

“Posted Invoice Register”

“Posted Payment Register”

“Accounts Payable Trial Balance” (current and last period)

These reports ensure that your Trial Balance accurately reflects your accounts payable liability by matching the Posted invoices and payments with the AP liability account. You can also compare your AP liability accounts to GL by doing a query of the accounts in GL to identify the account or accounts out of balance. The trial balance total should be the same as your GL liability account.

If not:

Run the GL “Account Analysis” report for the liability account and for the date range in question. Look for transactions with a source other than Payables. This can quickly pinpoint any transactions incorrectly charged to the account. Make sure that you have not made manual

journal entries to your liability account in General Ledger.When you identify the accounts you go back to AP and do a query on the account to find the invoices out of balance.

The last step is to create a journal entry in GL to balance the account or accounts that is out of balance.

Q: How is the as-of-date used in the “Accounts Payable Trial Balance” report?
A: The as-of-date is used to determine which invoices and payments should be included on the report.  Any invoices or payments with an accounting date AFTER the entered as-of-date will not be displayed on this report.

10 thoughts

  1. What will be the effect on AP Vs GL Reconciliation, if an invoice is charged to Supplier control account and it is paid? Will it create the reconciliation issue? if yes, how we should stop if i mean how to restrict that accountant should not use the supplier control account in invoice distribution?

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  2. I have devloped few custom report which show all the information of payable R12
    1) Supplier Ledger
    2) Supplier Trial Balance
    3) Supplier Advance(Pre payment) Register
    4) Supplier Advance Adjustment (Pre payment) Register
    5) Supplier Liability Report
    6) Supplier Aging Report
    7) AP Reconciliation Report
    1) Supplier Ledger
    2) Supplier Trial Balance
    3) Supplier Advance(Pre payment) Register
    4) Supplier Advance Adjustment (Pre payment) Register
    5) Supplier Liability Report
    6) Supplier Aging Report
    7) AP Reconciliation Report
    with help of this new develop reports complated your AP reco.and give 100% reco in oracle payable R12
    Supplier Trial Balance (100 $) =
    Supplier Ledger (100$) =
    (Supplier Liability Report (120$)- Supplier Advance Adjustment (Pre payment) Register 20$) =
    Supplier Aging Report (100$)=
    AP Reconciliation Report 100$ (GL(110$) and SLA (100$)
    If GL SLA then display all the information of rest of trans… for 10 $)
    This reports are very accurate (100%) even we can fire with back dated also.

    Nilesh789@yahoo.com

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  3. it is really useful information. but i was woundering if it is differ with R 12i ,at payable trial balance there are 3 columns as the following :

    1- Gl balance

    2- Original amount

    3- Remainaing

    Q what does remain ing means?

    Thanks

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  4. I saw the Formula. I need some example how it will calculate the formula for GL.EX Dollars Amount

    “Accounts Payable Trial Balance” as of March 31
    + “Posted Invoice Register” for the period between April 1 and April 30
    – “Posted Payment Register” for the period between April 1 and April 30
    = “Accounts Payable Trial Balance” as of April 30

    Reconciling AP to GL is accomplished with the use of the following reports

    Like

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