Reconciling Report Totals

Transcription

1 CLIENT BOOKKEEPING SOLUTION ACCOUNTS RECEIVABLE Reconciling Report Totals version 2007.x.x

2 TL (05/20/09) Copyright Information Text copyright by Thomson Reuters/Tax & Accounting. All rights reserved. Video display images copyright by Thomson Reuters/Tax & Accounting. All rights reserved. Thomson Reuters hereby grants licensees of CS Professional Suite software the right to reprint this document solely for their internal use. Trademark Information The trademarks used herein are trademarks and registered trademarks used under license. All other brand and product names mentioned in this manual are trademarks or registered trademarks of their respective holder

3 Contents Reconciling CBS Accounts Receivable Reports... 1 In General... 1 AR Transactions List... 2 AR Deposit Journal... 3 Aging Schedule... 4 Customer Ledger... 5 Sales by Item/Service... 6 Sales Report... 8 Reconciling Write-offs, Finance Charges, and Credit Memos... 9 Write-offs... 9 Finance charges Credit memos Reconciling Specific Accounts Receivable Accounts Undeposited Payments account Unearned Revenue account Reconciling Accounts Receivable Reports to Each Other Customer Ledger, Aging Schedule, and Invoice/Payment List Sales Tax Report and Invoice/Payment List Reconciling CBS Accounts Receivable Report Totals i

4 Contents ii Reconciling CBS Accounts Receivable Report Totals

5 Reconciling CBS Accounts Receivable Reports In General This document describes the relationships between several of the reports in Client Bookkeeping Solution (CBS) Accounts Receivable and the journal entries that export to your accountant. The AR Transactions List report is specifically designed to show the amounts in the AR Journal Entries that will transfer to your accountant when you export your company data (by choosing File / Export to Accountant). In addition, several of the CBS Accounts Receivable reports include the Current Export Period option that helps you reconcile your accounts receivable reports. Special Information In order to match information that will transfer to your accountant or to other reports, you must choose the print options for each accounts receivable report as specified in this document, and then generate the reports just before exporting to your accountant. Remember to complete your monthly or period processing, including the assessment of finance charges, before generating month-end or period-end reconciliation reports. When you choose the Current export period option in any of the report options dialogs, the program may gray out other report options so that they are not available. The Current export period checkbox may not be available under the following conditions. There is an active receivables report filter selected. Click the Clear filter button on the File / Queue Reports / Accounts Receivable tab to clear the filter. Your accountant has configured your CBS program to export memo transactions. Your accountant has configured your CBS program such that this option is not accessible. Reconciling CBS Accounts Receivable Report Totals 1

6 Reconciling CBS Accounts Receivable Reports When you mark the Current export period checkbox in the report options dialog, CBS uses the export date entered in the transaction record to determine if the transaction will be exported at the end of the current period. Example. If you enter an invoice with a transaction date of 1/31/XX, where XX represents the two-digit year, the default export date will be 1/31/XX. If you change the export date to 2/15/XX, the invoice will not appear in any January reports for which you marked the Current export period checkbox. CBS allows you to specify up to four decimal places for quantities and prices during data entry and on reports. Because rounding these numbers to pennies may cause a rounding difference between the individual detail item (four decimal places) and the total (two decimal places), the program displays the words error due to rounding on the AR Transactions List, Sales Tax report, Sales Report, and Sales by Item/Service report if a rounding difference occurs. The program verifies that the sum of the detail information transferred to your accountant is correct in the General Ledger. Example. You have selected two sales tax codes for a particular invoice one is a state tax and the other is a city tax for which you specified four decimal place precision. In this case, the sum of the taxes is not equal to the sum of the rounded sales tax. 4 Decimal places Rounded State: City: Total: In this example, the report displays a rounding difference of (.01) as part of the detail so that it sums to AR Transactions List The total amount for each account on the AR Transactions List should match the entry your accountant has posted in the General Ledger for the current period. Use the following report options in the Transactions List options dialog to match the balances that will export to your accountant. Current export period Report Type Basis Mark this checkbox Detail Choose the option to match the accounting method (Accrual or Cash) specified on the File / Company Properties / Accounts Receivable Data Entry tab. Your accountant determines the accounting method. 2 Reconciling CBS Accounts Receivable Report Totals

7 Reconciling CBS Accounts Receivable Reports When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to Include Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of the transaction date. The report will exclude all transactions with a futureperiod export date. The report will include all GL Accounts. AR Deposit Journal To match the balance in a checkbook account for deposits made through the CBS Accounts Receivable module, choose the following report options in the AR Deposit Journal report options dialog. Current export period Report Type Print order Mark this checkbox Detail Date When you mark the Current export period checkbox, the fields in the Transactions to include group box will be grayed out. The report will include all deposits that have not been exported in previous periods, regardless of deposit date. The report will exclude all deposits with a future-period date. The Report Total in the AR Deposit Journal will reconcile to the following: Checkbook account balance on the AR Transactions List report. Total of all Deposits on the CBS CheckWriter Deposits List if the Current Export Period option is chosen and all deposits were made using the CBS Accounts Receivable module. Note: Deposit transactions created on the Checkbook / Deposits tab are not included in the accounts receivable report. AR deposit journal entries transferred to your accountant for the checkbook account balance. Note: The program may assign a specific reference number to the exported accounts receivable deposits to provide your accountant with a deposit journal. Reconciling CBS Accounts Receivable Report Totals 3

8 Reconciling CBS Accounts Receivable Reports Aging Schedule To match the year-to-date Accounts Receivable account balance that is transferred to your accountant, use the following report options in the Aging Schedule report options dialog. Current export period Period Definition Report Type Include Unapplied Payments Mark this checkbox Any period type or period length. Detail Do not mark this checkbox. When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Age as of Set Cutoff Date Aging Basis Discount Treatment Limit selection to Notes The program ages the receivables as of the date specified in the Next Schedule Export field on the File / Company Properties / General tab. The report will exclude future-period transactions. The program will age the transactions based on the transaction Due Date. The report will display transactions Net of Discounts. The report will include all customers. The Report Totals will reconcile to the YTD balance for the Accounts Receivable account (accrual basis only) in the General Ledger (printed by your accountant). Special Information Unapplied payments do not affect the accounts receivable account until they are applied; therefore, the Include Unapplied Payments checkbox must be unmarked. Unapplied Payments are journalized through the Unearned Revenue GL account. Once applied, the Unearned Revenue account will be relieved. To reconcile the YTD Unearned Revenue account balance (accrual or cash basis) in the General Ledger, do the following: Choose the report options as specified above, except the Include Unapplied Payments. Do mark this checkbox. Subtract the Report Totals in this report from the Report Totals calculated when the Include Unapplied Payments checkbox was unmarked. Receivables are exported to the General Ledger net of discounts. For any invoice closed in the current period with a payment for which the discount honored is different from the discount offered and for which the discount expiration date is after the Date of Next Export, you will need to: 4 Reconciling CBS Accounts Receivable Report Totals

9 Reconciling CBS Accounts Receivable Reports Subtract the amount of discount forfeited (discount offered is more than discount honored) from the Report Totals. Add the difference between the discount honored and the discount offered (when the discount honored is more than the discount offered). Note: The journal entry for discount expiration will be made on the day after the discount expiration date in the appropriate period; therefore, the YTD accounts receivable balance exported to the accountant (and as shown on the AR Transactions List) for the month following the discount forfeit will be correct. This does not apply if your accountant has set up your company to use the cash basis accounting method. If you are using the cash basis accounting method, the program recognizes discounts at the time of payment. Example For a January invoice with a discount available through February 10 but paid in full with no discount honored, the expiration of the available discount and the forfeit of that discount will be journalized on February 11. If you export prior to that date, the program will show the discount as available in the general ledger. Customer Ledger To match the current period accounts receivable balances that will export to your accountant and the balances on the AR Transactions List, use the following report options in the Customer Ledger Options dialog. Current export period Report Type Print Order Mark this checkbox Detail Transaction Date When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to Include Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report will exclude all transactions with a futureperiod Export date. The report will include all customers. Subtract the Unearned Revenue account balance on the AR Transactions List report from the Report Totals Balance column on the Customer Ledger report. Special Information The Customer Ledger displays all activity for a given customer. Since unapplied payments are journalized through the Unearned Revenue account and do not affect the accounts receivable account until they are applied, Unearned Revenue from the AR Transactions List must be added back into the Report Reconciling CBS Accounts Receivable Report Totals 5

10 Reconciling CBS Accounts Receivable Reports Totals on the Customer Ledger. Once applied, the Unearned Revenue account will be relieved. The Unearned Revenue account is specified on the File / Company Properties / Accounts Receivable tab. If your accountant set up your CBS program to use the cash basis accounting method, the program does not post any activity to the Accounts Receivable account. Receivables are exported to the General Ledger net of discounts. For any invoice closed in the current period with a payment for which the discount honored is more than the discount offered and for which the discount expiration date is after the Date of Next Export, you will need to add the difference between the discount honored and the discount offered to reconcile to the AR account total on the AR Transactions List. Example For a January invoice with a discount available through February 10 but paid in full with discount honored more than what was offered, the expiration of the offered discount will be journalized on February 11. If you export prior to that date, the program will show the discount as available in the general ledger. Sales by Item/Service To match the balances in your sales accounts that will export to your accountant, in the Sales Report, and in the AR Transactions List, use the following report options in the Sales by Item / Service report options dialog: Current export period Report Type Basis Mark this checkbox Detail Choose the option to match the accounting method (Accrual or Cash) specified on the File / Company Properties / Accounts Receivable Data Entry tab. Your accountant determines the accounting method. When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Items/services to include Types to Include Limit selection to Print order Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report will exclude all transactions with futureperiod Export date. The report will include all invoice item types listed (Item, Services, Credit). The report will include all items and transactions. The information will be printed in order of Sales GL account. 6 Reconciling CBS Accounts Receivable Report Totals

11 Reconciling CBS Accounts Receivable Reports For each Sales GL account, the Group Total in the Sales Amount column will reconcile to the following. Sales GL account data that will transfer to your accountant from CBS Accounts Receivable Sales GL account on the AR Transactions List Report Totals in the Sale Total column on the Sales Report Special Information The Sales GL account total will not reconcile to your accountant or to the AR Transactions List in either of the following situations: If any of the invoice items are assigned to a specific sales GL account but are set up as a non-sale invoice item (an invoice item for which the Sales Item checkbox in the Setup / Invoice Items dialog is not marked). If any of the invoice items are assigned to a specific sales GL account and are set up as a sales invoice item (an invoice item for which the Sales Item checkbox in the Setup / Invoice Items dialog is marked) but the setting was overridden during data entry in the Invoice Items detail dialog (accessed from the Tasks / Receivable Transactions / Items tab). If any amounts were entered in the Gross field in the Tasks / Receivable Transactions window. The program considers these amounts to be non-sale amounts, so they will not appear on the Sales by Item/Service report. Note: If you entered an amount in the Gross field and also selected invoice items on the Items tab of the Receivable Transactions window, the program will treat those invoice item amounts as sales items, unless either of the first two bullet points listed in this Special Information section apply. To determine if an invoice includes any non-sale items, you may wish to generate a Sales Report with the options specified in the Sales Report section of this document. The Non-Sale Total column will include the following: Amounts associated with items that were set up as non-sale items Amounts associated with items that were overridden as non-sale items Amounts entered in the Gross field (instead of selecting invoice items on the Items tab). Note that the Gross field is available only when the Flat Amount Billing checkbox is marked in the Edit / Receivable Data Entry Options dialog. Reconciling CBS Accounts Receivable Report Totals 7

12 Reconciling CBS Accounts Receivable Reports Sales Report To match the balances in your Sales accounts that will export to your accountant in the Sales by Item/Service report and in the AR Transactions List, use the following report options in the Sales Report options dialog: Current export period Report Type Basis Print Order Mark this checkbox Detail Choose the option to match the accounting method (Accrual or Cash) specified on the File / Company Properties / Accounts Receivable Data Entry tab. Your accountant determines the accounting method. Customer ID When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to include Status Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report will exclude all transactions with a futureperiod export date. The report will include finalized, voided, and deleted transactions that have been previously exported to your accountant. The report will include all customers. The Report Totals in the Sale Total column will reconcile to the following: Addition of all Sales GL account data that will transfer to your accountant from CBS Accounts Receivable Addition of all sales accounts on the AR Transactions List Report Totals in the Sales Amount column on the Sales by Item / Service report Special Information The sum of the amounts in the Sale Total column and Non-Sale Total column will reconcile to the total of all Sales GL accounts as specified in the Setup / Invoice Items dialog if either of the following apply: Any of the Invoice Items were set up as non-sale items (an item for which the Sales Item checkbox is not marked in the Setup / Invoice Items dialog) Any of the transactions were entered in the Gross field and there are no invoice items selected on the Items tab of the Receivable Transactions window. Note that the Gross field is available only when the Flat Amount Billing checkbox is marked in the Edit / Receivable Data Entry Options dialog. 8 Reconciling CBS Accounts Receivable Report Totals

13 Reconciling Write-offs, Finance Charges, and Credit Memos Write-offs To reconcile the Write-off journal entry that transfers to your accountant, use the following report options in the Invoice / Payment List report options dialog: Current Export Period Transaction type Report type Print order Mark this checkbox Write-Off Summary or List Customer ID When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to include Status Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report will exclude all transactions with a futureperiod export date. The report will include all finalized, voided, and deleted transactions. The report will include all customers. The Report Totals in the Gross Total column will reconcile to the following: Bad Debt expense account on the AR Transactions List Bad Debt expense account on your General Ledger Note: Your accountant may set up a reference number or journal specifically for write-offs. Reconciling CBS Accounts Receivable Report Totals 9

14 Reconciling Write-offs, Finance Charges, and Credit Memos Special Information Write-Off payment types can be distributed to multiple accounts when entered. If any write-offs were distributed to multiple accounts or the account was overridden during data entry, the Gross Total will reconcile to the addition of all accounts. Finance charges To reconcile the Finance Charge journal entry that transfers to your accountant, use the following reports options on the Invoice / Payment List report options dialog: Current Export Period Transaction type Report type Print order Mark this checkbox Finance Charges Summary or List Customer ID When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to include Status Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report excludes all transactions with a futureperiod Export date. The report will include finalized, voided, and deleted transactions The report will include all customers. If your accountant set up your CBS program to use the accrual basis accounting method, the Report Totals in the Gross Total column will reconcile to accounts listed below. If your program is set up to use the cash basis accounting method, the Gross Total column minus the Open Balance column will reconcile to the accounts listed below. Finance Charge Revenue account on the AR Transactions List Finance Charge Revenue account on your General Ledger Note: Your accountant may set up a reference number or journal specifically for finance charges. 10 Reconciling CBS Accounts Receivable Report Totals

15 Reconciling Write-offs, Finance Charges, and Credit Memos Credit memos To reconcile the Credit Memo journal entry that transfers to your accountant use the following report options on the Invoice/Payment List report options dialog: Current Export Period Transaction type Report type Print order Mark this checkbox Credit Memo Summary or List Customer ID When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to include Status Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report will exclude all transactions with a futureperiod Export date. The report will include finalized, voided, and deleted transactions. The report will include all customers. The Report Totals in the Open Balance column will reconcile to credit memo entries in the Unearned Revenue account on your General Ledger. The Report Totals in the Gross Total column will reconcile to the addition of all Credit Memo entries in the Sales, Sales Tax, and Shipping accounts on your General Ledger. Notes Your accountant may set up a reference number or journal specifically for credit memos. If your accountant set up your CBS program to use the cash basis accounting method, the Open Balance column will reconcile to the sum of all credit memo entries. Reconciling CBS Accounts Receivable Report Totals 11

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17 Reconciling Specific Accounts Receivable Accounts Undeposited Payments account To reconcile the Undeposited Payments account (as specified on the File / Company Properties / Accounts Receivable tab), generate a Deposit Detail List as follows: 1. Choose Tasks / Deposits. 2. Click the Print Detail button while on the New AR Deposit record. 3. Choose the Current export period option in the Print Undeposited Payments dialog. This total reconciles to the following current period reports: Undeposited Payment account on the AR Transactions List Undeposited Payment account on your General Ledger Special Information The Undeposited Payment amount will not reconcile as stated above if you deposit a future-period payment into a current-period deposit. This will prevent the amount from reconciling in the current period and in the following period. To reconcile in the current period, subtract the future-period payment from the Deposit Detail List total. To reconcile in the following period, add the future-period payment to the Deposit Detail List total. Reconciling CBS Accounts Receivable Report Totals 13

18 Reconciling Specific Accounts Receivable Accounts Unearned Revenue account To reconcile the Unearned Revenue account (as specified on the File / Company Properties / Accounts Receivable tab), use the following report options in the Invoice / Payment List options dialog. Current Export Period Transaction type Report type Print order Mark this checkbox Select Credit Memo and then All payments from the dropdown list. The sum of the two reports will be used to reconcile the Unearned Revenue account. Summary or List Customer ID When you mark the Current export period checkbox, the following fields or options will be grayed out. Field Transactions to include Status Limit selection to Notes The report will include all transactions that have not been exported in previous periods, regardless of transaction date. The report excludes all transactions with a future-period Export date. The report will include finalized, voided, and deleted transactions. The report will include all customers. The sum of the Report Totals Open Balance column in the two reports (credit memo and all payment transaction types) will reconcile to the following current period reports. Unearned Revenue account on the AR Transactions List Unearned Revenue account on your General Ledger To reconcile the YTD Unearned Revenue account, see the Aging Schedule section of this document. 14 Reconciling CBS Accounts Receivable Report Totals

19 Reconciling Accounts Receivable Reports to Each Other Customer Ledger, Aging Schedule, and Invoice/Payment List To reconcile the Customer Ledger, Aging Schedule, and Invoice/Payment List to each other, clear the Current export period checkbox in the applicable report options dialog, and use the report options specified below. Aging Schedule Age as of <date>: Enter the date from which to age customer receivables. Discount treatment: Choose Gross. Mark the Include Unapplied Payments checkbox. Customer Ledger Mark the Include only customers with open balance checkbox. Invoice / Payment List Status: Choose Open. Transaction type: Select All (invoices and payments). Reconciling CBS Accounts Receivable Report Totals 15

20 Reconciling Accounts Receivable Reports to Each Other Sales Tax Report and Invoice/Payment List If your accountant has set up your CBS software to use the Cash basis accounting method (as specified on the Accounts Receivable Data Entry tab of the File / Company Properties dialog), you can reconcile the Sales Tax report to the Invoice/Payment List if you generate the reports for the same period of time (same Transaction Date) and select All payments from the Transaction type drop-down list in the Invoice/Payment List Options dialog. In addition, you will need to perform the following calculations: On the Invoice/Payment List, add the amount in the Open Balance column to the Net total amount. On the Sales Tax Report, add the following amounts: Net Taxable Sales (for each sales tax) Sales Tax Collected Total Sales (for all invoices listed at the top of the report for which no sales tax code was selected) and then subtract the Payment applications made with payments dated earlier than the date listed at the bottom of the Sales Tax Report. 16 Reconciling CBS Accounts Receivable Report Totals