Good Morning, I have two vendors in our AP system. They are both credit card vendors and one has a positive balance and one a negative. I do not know the correct way to proceed on clearing them so that the AP open payable summary matches the GL control account. The vendor with the negative amount is due to entries being posted as prepayments and then automatic pmts from the bank account were posted directly from a GL batch along with other bank statement items. The vendor with the positive amount is two credit card statements with all expenses recorded, but these amounts were also recorded from the bank statement GL batch. So the expense accounts are fine, but the summary obviously is deducted the negative and adding the positive amounts. To make matters more complicated, these transactions were from the last fiscal year. How can I reconcile?
Deb

Hi Deb

It's pretty clear what you are asking is really an accounting question. It's not the kind of question we can handle on the Adagio forum.

You should get either your Adagio consultant involved (if he/she has an accounting background, most do), or your outside accountant involved, if no one in house has the expertise.

Steve

Hi Steve,
Thanks for the quick response. All the entries for accounting purposes have been reported correctly. Its just that I have these two amounts in the vendor balances that need to be cleared out. I was thinking to book the clearing entries through a suspense account in the GL (temporary holding). That way no expense accounts will be touched and the summary will balance the AP control account in the GL. I will ask my Adagio consultant to confirm this.