Hello,

We have an issue similar to one that was discussed earlier on this forum (#14143 - 25/08/08 02:58 PM AR subledger doesn't always reconcile to control) and I am wondering if any resolution was found.

In our case, the Trial Balance for month end continues to overstate and does not match the GL control. What we have found is that certain, but not all, credit notes do not show up on the TB. They are reflected properly in the customer account and in the control account.

I am not sure this is the only contributing factor because the missing credit notes do not fully account for the increase or decrease in the discrepancy in any given month.

We have Adagio AR 8.1A and Ledger 9.0A. Any solutions to this?

Thanks
Jody

Hi Jody

This issue is not "solvable" on a tech forum. There is an error somewhere in your data, probably a misposting, and it is up to you to find it.

That being said, here is my strategy for dealing with this kind of issue. Steps 1 thru 3 deal with prevention, steps 4 thru 9 deal with resolution.

1. When retrieving from AR into GL, always make sure to assign entries to "Period Based on Date". If "Specific Period" or "Subledger Period" are selected, then there is no way to reconcile except for the current moment.

2. Don't run AR period end as of a month-end date until the GL is ready to be closed for that month and until you have an Aged TB that agrees to the GL AR balance as of that month.

3. As soon as you meet the above conditions, run AR period end and then immediately close the GL period in the fiscal calendar. That way the GL won't change causing the Aged TB to not agree to the GL.

4. If there is a discrepancy, post all GL batches and retrieve from the AR subledger and post in GL.

5. Check to see what the discrepancy is RIGHT NOW.

6. If the figures tie right now, then you are done and you can explain away the prior discrepancy as a timing difference that self-corrected. If the figures don't tie, then you need to identify the period(s) where the discrepancy occured.

7. Scan through a GL detail listing of the AR account and look for anything with a source code that doesn't start with the letters AR (specifically looking for GL source codes). These are red flags - nothing should post to the AR account except for transactions that feed from the AR subledger.

8. Repeat step 5 as of the last month-end. Check to see if the discrepancy has changed from the RIGHT NOW discrepancy. If it has, then you need to investigate the details further.*

9. Continue working back month by month until you have identified changes in the discrepancy that match the amount you need to reconcile. If you have run a Period End, you won't be able to work back before the date of the period end, and you are stuck.

*How to investigate further is a subject for my next posting, in case you are at this point and would like to know.

Steve

A short note that it is very easy to check for transactions with a source that does not begin AR by either using GridView or creating a Source Journal.

Thanks for the detailed advice. I will review our month end procedures and continue to attempt to resolve our discrepancy.

While there may be a data error, what puzzles me is the failure of some credit notes to appear on the Aged Trial Balance even though they are correct in the customer's account. This happens almost every month without a pattern that we have been able to discern so far. It does not appear date related. Either the subledger report is not working properly, or there is something in the way we are handling some credit notes that is preventing them from being reported properly. Others have posted similar problems, so I am hoping there is some advice for me.

Thanks
Jody

Document numbers must be unique. If a credit note was created with a number that is the same as an invoice number or check number for the same customer, the result could be as you describe.

The first instance of the number shows on the report, but the second does not.

It is a good idea to always use CN or CR at the start of credit note numbers, DN to start debit note numbers, AD for adjustments.

Thanks, Kate. Our credit note numbers are auto generated in OE and do have the CN designation.

I am wondering if this problem is somehow related to the invoice to which the credit note is associated or to how the credit is handled as a cash application. This is now the thrust of my investigation.

I'd sure like to hear from Softrak Support on this as they are often so clever at pinning down just this sort of thing.

Thanks
Jody

Hi, Jody,

Steve, Kate and Andrew have all provided excellent advice. Based on your problem description, we really don't have anything to add.

There is no known problem with credit notes going to GL.

While it was initially the AR/GL discrepancy that got my attention, it is not a Credit Note to GL problem. The problem is with the AR Aged Trial Balance. And while I appreciate the advice given very much, the issue remains unsolved.

What we have found is the failure of some credit notes to appear on the Aged Trial Balance even though they are correct in the customer's account and in the control account. This happens almost every month without a pattern that we have so far been able to discern. It does not appear date related. Our credit note numbers are auto generated in OE and do have the CN designation.

I am wondering if this problem is somehow related to the invoice to which the credit note is associated or to how the credit is handled as a cash application. This is now the thrust of my investigation.

We have been doing this reconciliation for many years (Accpac Plus) and have resolved various discrepancies. This started happening shortly after we began using Adagio and to date it is apparently a mystery to all. Of course, if the subledger report is not functioning properly, this would explain it. But it is most likely something we are doing and I would very much like to know so we can correct it. I hate to think of this as our new month end reality. If you can offer any suggestions, I would really appreciate it.

Regards
Jody

Hi Jody

There is only one more suggestions left to make. Get an Adagio consultant to look at your data and figure out what you are doing wrong. Your time is valuable too.

Rest assured that Adagio works properly and the problem is not with the software. I have been consulting with hundreds of Adagio users over 10 years and have never had one report of a problem with the way invoices are related to credit notes. Softrak hasn't either. It's just not a possibility.

Please try taking my step by step approach above and once you identify the period(s) where the discrepancy arose, proceed from there and identify the specific transactions that make up the discrepancies. Hopefully you will succeed before you run up against a period end or year end wall.

Only after you identify the specific transactions that caused the discrepancies do you have any realistic hope for figuring out what caused them.

Steve

In the Aged Trial Balance be sure that all starting and ending selections are " "(Blank) to "zzzzzzzzzz" and if you have customer balance selected be sure the range is "-99999999999" to "99999999999" (all 9's). Sounds to me like your selections are leaving out a customer due to your selections. Error in Customer Balance selection could easily cause this perceived issue.

David