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Reconciliation of A/P to G/L

The standard month-end closing procedures should include a reconciliation between the Accounts Payable files and the corresponding General Ledger Control accounts.

Whether you have one G/L account to reconcile or many, the steps to reconcile the accounts are the same. Deltek recommends that you complete the reconciliation process on a monthly basis.

When you enter vouchers into Costpoint on the Manage Accounts Payable Vouchers screen or Manage Purchase Order Vouchers screen, the vouchers are held in temporary files until you post them. These unposted vouchers are not contained in the Open A/P files or the General Ledger.

After you post the vouchers, they are recorded concurrently in the Open Accounts Payable files and the General Ledger. The entry made by the posting is:

  • A debit to the expense accounts entered on the voucher and
  • A credit to the A/P Account/Organization/Ref1/Ref2 combination assigned to the voucher.

This is done with an Accounts Payable account description. The description is assigned to a unique Acct/Org/Ref1/Ref2 combination to identify the unique combination. You can then enter the description, which is easier than entering the Acct/Org/Ref1/Ref2 combination. Costpoint looks up the Acct/Org/Ref1/Ref2 combination and the description to which it is assigned. After you post the vouchers, the Accounts Payable Account usually has a credit balance. This credit is relieved when you post the Cash Disbursements Journal after you create the check. The Open A/P files are updated as soon as the check is printed, but the G/L is not updated until the Cash Disbursements journal is posted. The Cash Disbursements journal makes a debit to the A/P Account and a credit to the Cash Account. The Cash Account has a description assigned to it using the same method as A/P Account Description.

Because the posting of the Voucher Distribution and the Cash Disbursements journals creates entries in both the Open A/P files and the G/L, these postings keep the two journals in balance. If you make an entry in the G/L using any other journal (such as a journal entry from the General Ledger), the two reports are thrown out of balance. For this reason, you should change the balance in the A/P Account only through the use of vouchers.