Quick Answer: How Do I Reconcile AR To GL?

What is SL GL reconciliation?

by Michael Shultz, Director of Strategic Accounting.

General Ledger Reconciliation is the process performed by accountants to verify the integrity of account balances on the company’s general ledger of accounts..

What affects accounts receivable?

The amount of accounts receivable is increased on the debit side and decreased on the credit side. When a cash payment is received from the debtor, cash is increased and the accounts receivable is decreased. When recording the transaction, cash is debited, and accounts receivable are credited.

Why accounts receivable can never have a credit balance?

Accounts Receivable is always have a normal debit balance because this is part of Assets and all asset accounts has a final debit balance.

What are the steps you would take to close the AR period?

Period-End Process In Receivables R12Complete All Transactions for the Period Being Closed. … Reconcile Transaction Activity for the Period. … Reconcile Outstanding Customer Balances. … Review the Unapplied Receipts Register. … Reconcile Receipts. … Reconcile Receipts to Bank Statement Activity for the Period. … Post to the General Ledger.More items…

How do you do GL reconciliation?

The reconciliation process at the account level typically comprises the following steps:Beginning balance investigation. Match the beginning balance in the account to the ending reconciliation detail from the prior period. … Current period investigation. … Adjustments review. … Reversals review. … Ending balance review.

How do you balance accounts receivable?

To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account. When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is usually a debit.

How do you reconcile inventory to general ledger?

How to reconcile inventory: a 5-step processStep 1: Check your physical inventory count. … Step 2: Compare physical count with inventory records. … Step 3: Look at inventory deliveries/shipments since the last reconciliation. … Step 4: Double down on discrepancies. … Step 5: Consistently reconcile your inventory.

What is P&L reconciliation?

There are two primary profit and loss (P&L) reconciliations performed by product control. These are the comparison of the front office estimate to product control’s P&L and the comparison of the P&L in the general ledger (GL) to that reported by product control.

How do you resolve inventory discrepancies?

Resolving inventory discrepanciesCheck for computation errors. … Re-count stock. … Check for mixed products. … Check for similar stock on other locations. … Ensure ideal units of measurements. … Verify outstanding orders. … Verify that the SKU or product identification numbers are correct.

How do you reconcile cogs?

Manually Running the COGS ProcessNavigate to Menu > Accounting > General Journal.At the list view, click Actions > Generate COGS Reconciliation.If applicable, enter the Limit-To Date (see below for important details), then click Yes.