CLIENT BOOKKEEPING SOLUTION ACCOUNTS PAYABLE Reconciling Report Totals version 2007.x.x
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Contents Reconciling CBS Accounts Payable Reports... 1 In General... 1 AP Transactions List... 2 Aging Schedule... 3 Cash Requirements... 4 Purchases Journal... 4 Reconciling Accounts Payable Reports to Each Other... 7 Cash Requirements and Aging Schedule... 7 Reconciling CBS Accounts Payable Report Totals iii
Contents iv Reconciling CBS Accounts Payable Report Totals
Reconciling CBS Accounts Payable Reports In General This document describes the relationships between several of the reports in Client Bookkeeping Solution (CBS) Accounts Payable and the journal entries that export to your accountant. The AP Transactions List report is specifically designed to show the amounts in the AP 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 Payable reports include the Current Export Period option that helps you reconcile your accounts payable reports. Special Information The print options specified in this document for each accounts payable report are intended to help you match information in CBS Accounts Payable to other CBS reports or to data that will transfer to your accountant. You should generate these reports just before exporting to your accountant. Remember to complete your monthly or period processing before generating month-end or period-end reconciliation reports. When you choose the Current export period option in any of the report options dialogs, 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. Note that CBS exports all prior-period transactions entered in the company database that have not yet been exported. These transactions will be included on the current export period reports. 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 (in the Edit / Override Export Date dialog), the invoice will not appear in any January reports for which you chose the Current export period option. Reconciling CBS Accounts Payable Report Totals 1
Reconciling CBS Accounts Payable Reports If your accountant set up your CBS software to use the accrual basis accounting method (as indicated on the Accounts Payable tab of the File / Company Properties dialog), there are two options for reporting that information on most CBS reports and in your accountant s software. Consult with your accountant for help on choosing the appropriate basis for your reports. CBS handles your accounts payable entries as follows. Accrual - perpetual. CBS recognizes invoices in the period they are entered and makes entries in your Expense and Accounts Payable accounts. When you pay the invoices, CBS displays checks in the Accounts Payable account. Accrual - reversing. CBS recognizes invoices in the period they are entered and makes entries in your Expense and Accounts Payable accounts. Your accountant s software reverses these entries each period. If the invoice is still open at the end of a subsequent period, CBS makes another entry to your Expense and Accounts Payable accounts. When you pay the invoices, CBS displays the checks in the Expense account. AP Transactions List The total amount for each account on the AP 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 AP Transactions List options dialog to match the balances that will export to your accountant. Activity to include GL accounts to include Format Basis One line per transaction Description prefix Sort checks by Current export period Detail (recommended) Choose the option to match the accounting method (Accrual or Cash) specified on the File / Company Properties / Accounts Payable tab. If your CBS software is set up to use the Accrual accounting method, please consult your accountant for help on choosing the appropriate basis Special Information The options above will provide the easiest means to reconcile to the accountant s general ledger and to identify the source of problems if your data does not reconcile. As long as you choose the Current export period, all GL accounts, and the correct basis, the level of detail and the amount of information presented can be based on your preferences. If you choose Accrual-perpetual or Accrual-reversing in the Basis group box, CBS prints an asterisk (*) next to the accrual portion of the transaction that will be transferred to your accountant. 2 Reconciling CBS Accounts Payable Report Totals
Reconciling CBS Accounts Payable Reports Note: Your accountant will set this up with a separate reference number on the general ledger. Aging Schedule To match the year-to-date Accounts Payable 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 Format Aging basis Mark this checkbox Detail (recommended) When you mark the Current export period checkbox, the following fields and options are grayed out. Field Vendors to include Exclude invoices beyond the export date Discount treatment Print Order Notes The report will include AP transactions for all vendors (excluding any open payables for Paycheck vendors) in this report. CBS journalizes the PayCheck payables through CBS PayCheck, so they do not need to be included in this report. The program automatically excludes any future-period payments or payables. The report will include transactions Net of discounts The program will print the report in Vendor ID order. The Firm Totals will reconcile to the YTD balance for the Accounts Payable account (accrual basis only) in the General Ledger (printed by your accountant). Special Information If your CBS software is set up to use the Cash basis accounting method (as specified on the File / Company Properties / Accounts Payable tab), the Current export period checkbox will not be available because the cash basis method does not recognize expenses until they are paid. Reconciling CBS Accounts Payable Report Totals 3
Reconciling CBS Accounts Payable Reports Cash Requirements To match the amounts on the Aging Schedule to the year-to-date balance maintained in your accountant s general ledger, choose the following report options: Current export period GL Accounts to include Vendors to include Format Print Order Mark this checkbox Summary or Detail The Firm Net Open Balance amount on the Cash Requirements report will reconcile to the Accounts Payable account total on the Aging Schedule. Purchases Journal To match the balances in your expense accounts on the AP Transaction List and that will export to your accountant, choose the following report options: Current export period Only prior-period transactions Include future period transactions GL Accounts to include Vendors to include Format Basis Unapplied payments to include Include Paycheck payables Print Order Mark this checkbox Do not mark this checkbox Do not mark this checkbox Detail (recommended) Choose the option to match the accounting method (Accrual or Cash) specified on the File / Company Properties / Accounts Payable tab. If your CBS software is set up to use the Accrual accounting method, please consult your accountant for help on choosing the appropriate basis. None (for Accrual) or (for Cash) Do not mark this checkbox Account number 4 Reconciling CBS Accounts Payable Report Totals
Reconciling CBS Accounts Payable Reports For each Expense GL account, the Total for each account in the Amount column will reconcile to the following: Expense GL account data that will transfer to your accountant from CBS Accounts Payable. Expense GL account on the AP Transaction List Special Information To reconcile data to the AP Transaction List and to data that will transfer to your accountant for the current period, choose the Accrual-reversing option (if you chose this basis on the AP Transaction List). To generate a report of your current purchases (since the last time you exported data to your accountant), you must select the Accrual-perpetual option. The Accrual-reversing option will include payables that are still open from prior periods, and this may overstate your purchases. For Cash basis: CBS posts Unapplied AP payments to the AP account. By choosing in the Unapplied payments to include group box, you can reconcile your AP account balance as well. Reconciling CBS Accounts Payable Report Totals 5
Reconciling CBS Accounts Payable Reports 6 Reconciling CBS Accounts Payable Report Totals
Reconciling Accounts Payable Reports to Each Other Cash Requirements and Aging Schedule To reconcile the Cash Requirements and Aging Schedule reports to each other, set the AP Date before generating each report for discount calculations and use the report options specified below: Aging Schedule Current export period Vendors to include Exclude invoices beyond the export date Period Definition Format Aging basis Discount treatment Print Order Do not mark this checkbox Do not mark this checkbox Net of discounts Cash Requirements Vendors to include Format Ranges to include Print Order Selected Reconciling CBS Accounts Payable Report Totals 7
Reconciling Accounts Payable Reports to Each Other The Total amount in the Firm Totals line on the Aging Schedule should match either of the following items in the Cash Requirements report: If you choose the Summary format, use the Firm Net Open Balance amount. If you choose the Detail format, use the amount from the Net Open Amt column for the Total for <vendor> line. 8 Reconciling CBS Accounts Payable Report Totals