Verifying General Ledger Balances

This utility is used to compare various financial account balances within the general ledger with the total of all the account history. The left column shows the balance within the general ledger financial accounts. For example, the first set of values compares the total of all the financial accounts that are classified as Accounts Payable. The right column totals all the vendor history tabs. The Difference column calculates the difference between the two columns. The Difference should equal zero which indicates a proper balance.    

The same calculation is made between individual financial accounts and the totals within the history tabs of all customers, employees and inventory items. Review Transactions > Account History Tabs for more details on the history tabs. To run this utility, perform these steps:

1. Go to Financials > Utilities > Verify Balances. The following window will appear:
   

2. In the Month block, choose the month that is to be verified. Since this utility is verifying month end balances, a quick way to check all months is to set the Month field to the last month of the fiscal year.

3. Check that the Fiscal Year is correct. If not, choose the correct one.

4. Click on the Calculate button. The system will check the balances and show the numbers for each area and the difference if any.
   

5. If there is a difference in any of the accounts, a journal entry will be necessary to make sure that the G/L balance equals the balance of the corresponding module. This should only be done if the cause of the difference cannot be located and changed at the source document. If unsure of the steps to take, contact an EBMS consultant.
   If the general ledger balance is correct and the vendor, customer, employee or inventory history year tab is incorrect, take the following steps:

1. Adjust the general ledger account to match history totals since history pages cannot be adjusted without also posting to the general ledger.

2. Create a second journal entry to adjust the history page as well as adjusting the general ledger account to its original total.

If the history year tab amounts are correct and the general ledger balance is wrong, enter a journal entry using the steps listed above, but let the ID column blank as well as reference 2, Track 1, and track 2 columns.

Reconciling GL Accounts ERP Support Training

Review the Creating Journal Entries section for more details on using journal entries to adjust general ledger accounts and history balances.