Using Reconcile to GL for Accounts Payable Reconciliation
When your Accounts Payables GL account does not tie to your sub-ledger payables, you will need to find the discrepancy. A great tool for this is the Reconcile to GL routine. Before you use this tool you will want to make sure all transactions have been posted through the GL.
You can find this tool by going to Financial > Routines > Reconcile to GL.
The Reconciliation Date will default as the user date. Enter the Date range that you need to reconcile between your sub-ledger and GL. The From date should be the last time you know that these tied.
In the Module Dropdown, select Payables Management. Then you will need to enter the GL account in the Accounts field. You will also need to select an Output File if one does not default.
When all the information is entered, click Process.
This will open an Excel spreadsheet that will list the Unmatched Transactions, the Potentially Matched Transactions, and the Matched Transactions.
To find the entries that are responsible for the discrepancies, review the Unmatched Transactions.
Some or all of these transactions are the transactions that are causing the difference between your GL account and your sub-ledger. The Reconcile to GL functionality allows you to locate the transactions that are causing the discrepancies, rather than a manual method that would take more time.
Once you find the transactions that are causing the difference, you will need to enter correcting entries. If something was entered in the GL but not the sub-ledger, you will need to reverse the GL entry and enter it correctly in the sub-ledger.
If was in the sub-ledger and not the GL, you will need to void the entry that has the incorrect distribution and re-enter the transaction with the correct distribution. After all the correcting entries have been made, verify that your GL and sub-ledger are now in balance.