Step 4 - Reconcile prepayments

Ajera automatically creates financial entries to your Client Prepayment account (retainers) when you perform tasks through these menu options:

• Manage > Client Receipts
• Manage > Client Invoices

Selecting your Client Prepayment account when working in areas of Ajera other than those listed above (such as Manage > Journal Entries) causes your Client Invoice Aging report and Trial Balance report to be out of balance.

1. Print the Client Invoice Aging report (Reports > Client > Client Invoice Aging) as follows. These settings ensure that you are later able to compare like values between this report and the Trial Balance report.

• Set the As of Date date to the same month-end date that you used to produce the Trial Balance report.
• In the Customize options, do the following:

• In the Date Basis field, select Accounting date.
• Clear the Unpaid invoices only check box.

2. Compare the Client Invoice Aging report to the Trial Balance report:

If in balance, the Report Total in the Prepayment column on the Client Invoice Aging report equals the Current Balance for the Client Prepayment account on the Trial Balance report.

If in balance, proceed to Step 5 - Reconcile work-in-progress accounts. Otherwise, complete the following instructions.

Prepayments account does not reconcile to aging

If your Client Prepayments balance on the Trial Balance does not equal the Prepayment total on the Client Invoice Aging report, follow these steps:

Ensure beginning balances are in balance

1. Print the Beginning Balance Control Account Verification report. Click Company > Beginning Balances > Trial Balance > (Reports) > Beginning Balance Control Account Verification.
2. Compare the amounts listed in the Trial Balance column with the Entered column for the Client Prepayments account. If there is a difference (also noted on the report), you must determine which amount is correct and change the amount that is incorrect.

If the Trial Balance amount is incorrect, change the amount entered in the Beginning Balance Trial Balance (Company > Beginning Balances > Trial Balance). If the Entered amount is incorrect, change the Prepayment beginning balance amount entered for the client (Setup > Clients).

Determine if any journal entries need to be adjusted

1. Print the Ledger for the Client Prepayments account. Click Reports > Financial > Ledger, and select the month that you are reconciling (for example, April 2012).
2. Drill down on the Client Prepayments account. Identify any items that have a description of Journal Entry.

You can review journal entries in Manage > Journal Entries > Existing tab (or click the entry on the Ledger report) to determine the session to print and review. Because the Client Prepayments account is a control account, you must determine why entries were made and if they were made in error. Adjust erroneous entries using Manage > Journal Entries.

If these steps do not resolve the out-of-balance situation, contact Ajera Client Services or your Ajera consultant to discuss having Deltek analyze your data.