Lesson 5: Reconciling Account Balances

This lesson explains how you reconcile the balances of GL accounts with subledgers aer you have finished the migration of the financial data to Acumatica ERP.

Balance Reconciliation: General Information

Aer you have imported data to the system, you need to reconcile the balances.

Learning Objectives

In this chapter, you will learn how to do the following:

Identify which accounts should be reconciled aer data migration
Reconcile the balance of accounts aer data migration

To verify the results of data migration and to ensure that data is complete and accurate and the system is ready to be used in a production environment, you need to make sure that the uploaded balances are the same as those in the legacy system.

Reconciliation of Migrated Data

The process of reconciling the data migrated from a legacy system includes the following general steps:

You reconcile the accounts payable subledger with the general ledger. For the last imported period, you compare the balances of the Accounts Payable account, according to the trial balance, with the balance of this account based on the open accounts payable documents (bills and prepayments) that you have imported.
You reconcile the accounts receivable subledger with the general ledger. For the last imported period, you compare the balances of the Accounts Receivable account, according to the trial balance, with the balance of this account based on the open accounts receivable documents (invoices and payments) that you have imported.
You reconcile the fixed asset subledger with the general ledger (if the Fixed Assets Management feature is in use). You need to compare the balances of the fixed assets and accumulated depreciation accounts, according to the trial balance, with the records in the fixed asset subledger aer you have migrated the fixed assets data. For more information, see Migrating Fixed Assets.
You reconcile the inventory subledger with the general ledger (if the Inventory and Order Management feature is in use). For the last imported period, you compare the balances of the Inventory account, according to the trial balance, with the balance of this account based on the sales and purchase documents that you have imported.
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               Migration of inventory is out of the scope of this course.
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Also, you compare the account balances with the balances from the legacy system. Lesson 5: Reconciling Account Balances | 39

Balance Reconciliation: To Reconcile Balances Aer Data Migration

The following activity will walk you through the process of reconciling account balances aer data import.

          This activity is based on the U100 Basic Company dataset. If you are using another dataset, or if any
          system settings have been changed in U100 Basic Company, these changes can aﬀect the workflow
          of the activity and the results of the processing. To avoid any issues, restore the U100 Basic Company
          dataset to its initial state.

Story

Suppose that you are an implementation consultant, and you have finished data migration from the legacy system to Acumatica ERP. That is, you have imported vendors, customers, non-stock items, accounts payable documents, and accounts receivable documents. Also, you have imported trial balances. Now you need to reconcile the balances of the accounts payable and accounts receivable subledgers with the balances of the corresponding GL accounts to make sure that the balances of imported documents match the account balances.

Configuration Overview

In the U100 Basic Company dataset, the following tasks have been performed for the purposes of this activity:

On the Enable/Disable Features (CS100000) form, the minimum set of financial features has been enabled.
On the Companies (CS101500) form, the SweetLife company without branches has been configured by performing the steps described in Company Without Branches: To Configure a Company Without Branches.
On multiple forms, the required financial configuration has been performed, as described in the Implementing Basic Financials chapter of the Implementation Guide.

Process Overview

You will reconcile the balance of the Prepaid Expenses, Accounts Payable, and Accounts Receivable accounts by using the Trial Balance Summary (GL632000), AP Balance by GL Account (AP632000), and AR Balance by GL Account (AR632000) reports.

Step 1: Reconciling Accounts Payable with the General Ledger To reconcile the AP balances, do the following:

On the Trial Balance Summary (GL632000) report form, specify the following report parameters:

Ledger: ACTUAL
From Period: 11-2024
To Period: 11-2024

On the report form toolbar, click Run Report. In the report, review the ending balances of the 13200 (Deposit to Vendor) and 20000 (Accounts Payable) accounts. The ending balance of the 20000 (Accounts Payable) account for the period is $5,921.55. The ending balance of the 13200 (Deposit to Vendor) account for the period is $2,970.55, as shown in the following screenshot. Lesson 5: Reconciling Account Balances | 40
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   Figure: AP account balances in the trial balance for 11-2024
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On the AP Balance by GL Account (AP632000) report form, specify the following parameters:

Report Format: Account Summary
Financial Period: 11-2024

On the report form toolbar, click Run Report. In the report, review the total balance of the open accounts payable documents that you have imported. The total balance of the open documents posted to the 20000 (Accounts Payable) account for the period is $5,921.55; the total balance of open documents posted to the 13200 (Deposit to Vendor) account for the period is –$2,970.55. (See the following screenshot.)
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   Figure: The total balance of open AP bills and prepayments for 11-2024

   The balances are equal to the balances of the accounts in the general ledger, and thus are reconciled.
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Step 2: Reconciling Accounts Receivable with the General Ledger To reconcile the AR balances, do the following:

On the Trial Balance Summary (GL632000) report form, specify the following report parameters:

Ledger: ACTUAL
From Period: 11-2024 Lesson 5: Reconciling Account Balances | 41
To Period: 11-2024

On the report form toolbar, click Run Report. In the report, review the balance of the 11000 (Accounts Receivable) account. The ending balance of this account is $18,200.00. (See the following screenshot.)
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Figure: AR account balances in the trial balance for 11-2024
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On the AR Balance by GL Account (AR632000) report form, specify the following parameters:

Report Format: Account Summary
Financial Period: 11-2024

On the report form toolbar, click Run Report. Review the total of open accounts receivable documents posted to the 11000 (Accounts Receivable) account. This total balance is $18,200.00. (See the following screenshot.)
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Figure: The total balance of open AR documents for 11-2024

The balance is equal to the balance of the account in the general ledger, and thus the balances are
reconciled.
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You have finalized balance reconciliation and ensured that all data has been migrated correctly. Lesson 6: Importing Unreconciled Payments | 42