Validate/Balance Accounts Receivable Report Overview and Checklists

Product: The Agency Manager Series 7

The Balance Receivables Report is designed to determine whether customer balances equal the balance for Accounts Receivable on the General Ledger side. It checks for differences between the current period (the month for which the report is run) and  year-to-date. It also does additional checks and balances, which will be explained in this document. Run this report from the Month-End menu, Stay in Balance Checks, Balance Receivables. Keep all users out of TAM while the report runs for the most accurate results.

Notes:

This document is divided into the following sections:

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Out-of-Balance Checklists

Checklist: Current Period Out-of-Balance

Note: If you are out of balance only for the current period, you do not need this checklist. Your out-of-balance will clear when you close your month.

The computed balances calculated on lines 1 and 2 on page 1 of the report do not match. This error indicates that the problem is in the current month. Complete the checklist below to find the cause of the out-of-balance.

 

Was the Balance Receivables Report run with all users out of the system?   Yes  No
When was the last time the report indicated you were in balance?

Please retain a copy of this report, as it will be needed by Support if you are not able to find and correct the out-of-balance. 

Month: _______ Year: ___
Is year-to-date out by the same amount? (Refer to the Year-to-Date checklist.) If the year-to-date is in balance, then, most likely, a prior year-to-date problem is being corrected in the current month.   Yes  No
Does a Status of Accounts run for the Accounts Receivables account show any manual J/Es? The only items hitting this account should be deposits, disbursements and system-generated Month-End J/Es.   Yes  No

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Checklist: Year-to-Date Out-of-Balance

The computed balances calculated on lines 3 and 4 on page 2 of the report do not match. If this difference matches the current period difference, then the problem occurred in the current month. (Refer to the Current Period Checklist.) If the current period is in balance but year-to-date is out of balance, complete the checklist below to find the cause of the out-of-balance. Please remember that Accounting Support will need to review the following reports to assist you if you cannot locate the error. Please print the following reports and be prepared to send them to Accounting Support for assistance in locating the difference.

 

Have you posted up to the current month? If you have multiple months open, you will need to post to current before troubleshooting the difference. This may clear up the errors. This would occur if a deposit or disbursement filed on the customer side in one month but on the General Ledger side in another.   Yes  No
Is your Balance Sheet in balance? (Do the Total Assets equal the Total Liabilities and Net Worth?)

If the Balance Sheet is not in balance, run this report for prior months until you find two consecutive months that are in balance.

  Yes  No
Have you run the Month-End Balance Receivables report for prior months?  

Access this through the Month-End menu, Stay in Balance Checks, Balance Receivables for prior months to determine which current period was out of balance. 

Note: To run this report for prior months, you need to change the month in the Month field. For example, if you are out of balance in March 03, run this report for March 03, then February 03, then January 03, etc. When running this report backward, the year-to-date differences are not accurate, so look only for a current period difference.

  Yes  No
Were any backpost entries done recently? If so, do you see them in their posted month? Are their balances pulling forward? 

To verify this, run a Schedules report for your accounts receivable account. Access Reports, General Ledger, General Ledger Schedules. Under Criteria, run it for all months, selected account(s) (choose your accounts receivable account), and run it for the schedule ADJUST.

To add or define a schedule in the reports, access Utilities, Accounting, GL, Define Schedule Field and click the Next arrow. Click New and enter the schedule ADJUST to add it to the reports selection. 

  Yes  No

Do the MNTHEND entries on the Schedules report match the Generated Journal Entry report?

To run a Schedules report, access Reports, General Ledger, General Ledger Schedules. Run the report for schedule type MNTHEND (the word "monthend" without the "o") for the posted months that are out of balance.

Run a Generated Journal Entries report. Access Utilities, Accounting, General Ledger, Regenerate Journal Entries. Run the Generated Journal Entry report for the months that are out of balance.

Compare these two reports and note any differences that may be causing the out-of-balance.

To add or define a schedule in the reports, access Utilities, Accounting, GL, Define Schedule Field and click the Next arrow. Click New and enter the schedule MNTHEND to add it to the reports selection.

  Yes  No
Run a Status of Accounts for the Accounts Receivables (the General Ledger account, not the Aged Receivables) account for prior months (individually). Run this under Reports, General Ledger, Status of Accounts. On the Criteria tab select Include Month-End Journal Entries.

Compare the ending balance to the next month's opening balance. Do they match? Run a Status of Accounts on your Cash Accounts. Do you see the amount of your out-of-balance there?

  Yes  No

 

Can you balance manually?

To balance manually, refer to Reports to Verify the Figures (Year-to-Date) for which reports to run. To balance manually, the total on the Aged Receivables report less pre-bill should match the balance on the Status of Accounts. 

Note: These reports must be run one after another with users out of the system. Run the Aged Receivables report with the Report Mode of Balance to Month-End, the Pre-bill option as Items in a Future Accounting Month, and the Future accounting month set one month ahead of your system date. 

  Yes  No

Were any JNL transactions or User Defined transactions offset to the Accounts Receivable account? 

To determine this, you will need to run the following reports:

  1. A Miscellaneous Production Report for ALL transactions. This report can be found under Reports, Accounting, Miscellaneous Production.
  2. A User Defined transaction list. This can be found under Utilities, Accounting, Receivables and User Defined transactions. Click the Next arrow. Click the Print button from the User Defined transaction. See if there are any user defined transactions offset to your Accounts Receivable account.

On the report and look in the Account column to see if there are any accounts that have the Accounts Receivables account number.

Were any financed transactions entered into the system?

On the Miscellaneous Production report that you just ran, go through the report and make sure that the total of all of the finance transactions between the finance companies and the clients equals zero. Also see if there are any FIN transactions for the amount of the out-of-balance. This report can be previewed; just let Accounting Support know if there is a FIN transaction for the amount of the out-of-balance or if the FIN transactions do not total zero.

Note: If your agency is set up to use the Broker Suspense feature, you may be out of balance by the amount of the suspense items. If the year-to-date difference listed in the error message matches the year-to-date broker suspense figure, then disregard the errors. To verify this broker suspense figure, run the Broker Suspense Report (from TAM Reports, click User, then select Report Type =User-Defined Reports, Report Choices =Broker Suspense Account Report ) and select the A ccounting month in which the Balance Receivables report was run.

  Yes  No
Have you validated the clients? If you had any errors, correct them and run the validation again. 

Correct this through Utilities, Accounting, Receivables, Validate and Repair Client Balances.

  Yes  No

Do you have any Error 7s? A client with an Error 7 can lead to a year-to-date discrepancy. 

Follow these steps to validate for Error 7s:

  1. Access Utilities, Accounting, Receivables.
  2. Select Validate/Repair Client Balances and click the Next arrow.
  3. From the Validate Client Balances menu, select Validate Balances Report and click Next.  
  1. Under Client Type select All
  2. Click the Include Error 7 radio button. 
  3. Do not select Exclude Error 3  
  4. Do not select Print When No Errors are Found.

Fax any reports with an error 7 to Accounting Support for assistance.

  Yes  No
Did anyone make any changes to any client transactions?

To verify this, run the Utility Log Report.  Access Reports, Management, Utility Log Report

Select the Criteria tab and under the Run Date selection, enter the date when you last knew your receivables were in balance, and run it to today's date. For example if you were last in balance on March 15, 2005, you would select from 03/15/2005 to today's date.

  Yes  No
Did anyone make any changes or delete any user-defined transactions?

To verify this and print the report, follow the steps below.

  1. Click Utilities, System Administrative, Log Viewer and click the Next arrow.
  2. Click the dropdown arrow.
  3. Select the G:\TAM\SAV\Usertran.log file (where G: is the drive where TAM is located).
  4. Click Load File.
  5. Click Print to print this file.
  Yes  No
Run an Activity report.

Access Reports, Activity, Activity Report.  Under Criteria, select the Activity code UTIL, Output summary is Detail and the Date selection is the date your agency was last in balance to the present day.

Look through this report to see if you find anything for the amount of the out-of-balance.

If you find any amount on this client that matches the out-of-balance amount, validate that client in Utilities, Accounting, Receivables,Validate Client Balances. Select Validate Client Balances report, run it for this customer, and select to print if no errors are found.   

  Yes  No

If you cannot solve the out-of-balance, Support must verify that all steps have been followed and all reports have been run before they can begin to troubleshoot any out-of-balance situations or errors described in this document.  You will need to send the following reports to Accounting Support:

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Report Overviews

Report Overview: Page 1 - Current Period

The first page of the report summarizes the current period receivable information.

The top half of the page summarizes the customer's transactions. It prints the same information found on a Reconciliation Worksheet. (From TAM Reports, select Report Type =Reports-Accounting, Report Choices =Aged Receivables Worksheet.) It will give a net change figure (LINE 1). The bottom half of the page summarizes the General Ledger Receivable account, plus what moves from the customer side at Month-End. This will also print a net change (LINE 2). If your month is not in balance, you are referred to an attached error report, which will be explained later.

Example of Page 1 

BALANCE RECEIVABLES - CURRENT PERIOD

Agencies selected: All agencies

Accounting Month: OCT 02

AGED RECEIVABLES - INVOICES

Account Current

2159.94

Plus: Agency Fees

14.00

Plus: Write-off Journal Entries

-211.13

Plus: User Defined Transactions

-50.00

Plus: Service Charges

366.20

Plus: Journal Transactions (JNL's)

-25.00

Less: Broker Commissions

50.00

Less: Payments Received

2804.77

Plus: Returns & Advanced Premiums

1480.56

1. EQUALS: Net Change in Receivables for this period

 879.80

                  

AGED RECEIVABLES - General Ledger

Net Change from Journal Entries, Cash Receipts & Disbursements

-1324.21

Plus: Month-End Journal Entries generated from Customer Transactions

2204.01

2. EQUALS: Net Change in Receivables for this period

879.80

     

If line one is equal to line two, then your receivables are in balance for the agency and month selected above.

If they are not equal, refer to the attached error report for details on where the out-of-balance situation occurred.

Reports to Verify the Figures (Current Period) 

Reports can be run to verify the totals provided on the Balance Receivables Report. Run the report for the full detail and not just the summary page. In case discrepancies are found, full detail can be used to track the difference.

Run all reports with the same agency parameters that you used to run the Balance Receivables Report. For example, if you ran the Balance Receivables Report for all agencies, run all other reports the same way. If you ran the Balance Receivables Report for a selected agency, run your reports for that agency only.

Note: Run all reports consecutively and verify that no users are invoicing while the reports are running.

Customer Side/Invoices 

General Ledger Side 

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Report Overview: Page 2 - Year-to-Date 

The second page of the report balances the year-to-date receivables.

Example of Page 2 

BALANCE RECEIVABLES - YEAR-TO-DATE

AGED RECEIVABLES - INVOICES

Total amount found in Customer Transactions

50655.44

Less: Pre-bill

0.00

3. EQUALS: Receivables Balance

50655.44

 

AGED RECEIVABLES - General Ledger

Beginning balance

44220.64

Plus: Net Change from Current Period

6434.80

4. EQUALS: Receivables Balance

50655.44

     

If line three is equal to line four, then your year-to-date receivables are in balance for the agency selected above.

If they are not equal, refer to the attached error report for details on where the out of balance situation occurred.

Reports to Verify the Figures (Year-to-Date) 

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Report Overview: Page 3 - Error Listings 

The third page (and all following pages) give error listings based on what TAM finds when doing the checks and balances routine. Some messages are warnings rather than errors. Some messages will cause the current period or year-to-date to be out of balance. Below are the different error listings that you may see, with an explanation of each and possible solutions to correct them.

General Ledger Transfer account's net change balance is not zero. Run a Status of Accounts report for Transfer account to locate improper transfer, which resulted in a balance.

This message displays because the Transfer account should have a 0.00 net change and a 0.00 ending balance. If this error occurs, run a Status of Accounts for the Transfer account. If the ending balance is not 0.00, then you will need to review the entries and determine where the net change is coming from (which debit does not have a matching credit or vice versa). If the ending balance is 0.00, this message can be ignored. This could be caused because the Transfer account had a balance last month and it is being cleared out by an entry this month.

Note: This may be a warning message than an error. Receivables can be in balance, and you will still receive this message if debits and credits do not equal zero for the Transfer account.

General Ledger Transfer account's previous month's beginning balance field is not zero. Run the Status of Accounts report for previous months to determine month that Transfer account closed with a balance.

This message displays if the beginning balance of the Transfer account is not 0.00 for the current month. If this message occurs, run a Status of Accounts for the Transfer account for previous months. Determine which month ended with a balance.

Note: This may be a warning message than an error. Receivables can be in balance, and you will still receive this message if the Transfer account has an opening balance. In addition, if the Transfer account is brought to a 0.00 balance in the current month, this message will still appear until the month is closed.

Journal entry between invoices error detected. Transaction type CRI (Credit Invoice) balance does not match transaction DBI (Debit Invoice). Total of CRI transaction types = ###. ## Total of DBI transaction types = ###. ##.

The program will sum all CRI (internal credit between items) and all DBI (internal debit between invoices) transactions on the customer side. If these totals do not match, the program prints this error message, displaying the total of CRI transactions and a total of DBI transactions it found. It does not display the clients that have the discrepancy. To find the client(s) that have the discrepancy, run a Production Report (from TAM Reports, select Report Type =Reports -Management, Report Choices =Production Report ) with the following parameters: All clients, Transaction types CRI and DBI only, current month, sort by clients and for Output, use Run complete report. The CRI and DBI transactions for each client should equal 0.00. Find the client(s) that are not 0.00. Once you have established the client(s), you will need to review the transaction history of each to determine which CRI or DBI is missing the other side. Support then can help you determine the best way to correct the situation.

Posting Error Detected. Net change calculated balance found not reflected by actual account balance. To correct, run Balance Sheet and Income Statement reports. If problem persists, call software support.

The net change was not correctly computed for this month. Run a Balance Sheet (TAM Reports, select Report Type =Reports -General Ledger, Report Choices =Balance Sheet ) or Income Statement (TAM Reports, select Report Type =Reports -General Ledger, Report Choices =Income Statement ) and click Yes in response to the question: "Recalculate Month-End Journal Entries?" to correct this problem. If this error still prints, check to make sure your Balance Sheet is in balance. If the figures are correct, continue closing the month. The error should drop off the report after the month is posted.

Corresponding receipt or disbursement reference # not found in customer invoices.

Record

Journal

Doctype

Refer

A

B

D

Account

Date

Desc.

Debit

Credit

Month

OP_ID

3755

1

D

25

1

1

1

1100

10/18/97

Deposit

0.00

100.00

9710

EX

The above receipt or disbursement cannot locate any attached customer invoice transactions.

The program checks to make sure all checks and deposits on the General Ledger side have a corresponding invoice (PAY, RET or ADV) on the customer side with the same refer number.

This message indicates that the program cannot find any transactions matching the refer number found in the General Ledger. You will need to determine what is missing. If it is a deposit, refer to the hardcopy of the deposit slip. If it was a check, refer to the description of the check to reference which customer has something missing.

Once you know which item has the discrepancy, see the How to Fix a Damaged Cash Entry (a.k.a. Cash Crash) document to correct the problem.

Note: If you fix this message with a JNL or user-defined transaction, you may be in balance but the error listing will still show this message until the month is posted. Even though you made a correcting entry, it is still looking for an item with the original refer number.

Receipt and disbursement transaction cannot locate all attached invoice records.

Record

Journal

Doctype

Refer

A

B

D

Account

Date

Desc.

Debit

Credit

Month

OP_ID

482

1

D

36

1

1

1

1100

10/18/97

Deposit

0.00

100.00

9710

EX

The following transactions are currently attached to this receipt or disbursement.

Record

Key

Pol_idx

Trans

A

B

D

Flag

State

Prt

Month

Amt

Balance

2283

C

BOXHI-1

PAY

1

1

1

c

Y

N

9710

75.00

0.00

The above invoice transactions are attached to the displayed cash receipt or disbursement records, but all invoices cannot be found. For the above receipt or disbursement record, find the invoice record(s) that are not attached. Total for invoice side =75.00.

This error message indicates that the receipt or disbursement amount for the General Ledger's Accounts Receivables account does not match the total of transactions it finds on the customer side for that refer number. The system is either finding not enough or too many transactions for that refer number. The error listing will list the transactions it does find and the total. Refer to the hard copy of the deposit to determine which client(s) has the missing or additional item(s).

Once you know which client(s) has the discrepancy, see the How to Fix a Damaged Cash Entry (a.k.a. Cash Crash) document to correct the problem.

Note: If you fix this message with a JNL or user-defined transaction, you may be in balance but the error listing will still show this message until the month is posted. Even though you made a correcting entry, it is still looking for an item with the original refer number.

Corresponding invoice reference # not found in cash receipts and disbursements.

Record

Key

Pol_idx

Trans

A

B

D

Flag

State

Prt

Month

Refer

Doctype

Amt

Balance

685

C

BOXHI-1

PAY

1

1

1

c

 

N

9710

45

D

50.00

0.00

The above transaction is attached to an invoice but a matching receipt or disbursement cannot be found.

This error message is similar to # 5 but reversed. It is finding a PAY, RET or ADV on the customer side but cannot find the corresponding receipt or disbursement on the General Ledger with the same refer number. The PAY(s) that it does find on the customer side will be listed.

Once you know which item has the discrepancy, see the How to Fix a Damaged Cash Entry (a.k.a. Cash Crash) document to correct the problem.

Note: If you fix this message with a JNL or user-defined transaction, you may be in balance but the error listing will still show this message until the month is posted. Even though you made a correcting entry, it is still looking for an item with the original refers number.

Required Transfer account is undefined. Required Transfer account is either undefined in chart of accounts, or Transfer account number has not been properly updated through Utilities, Required Accounts option.

You need to verify that the Transfer account is defined in the chart of accounts and/or defined under the required accounts.

  1. Select Utilities /Accounting

  2. Select Account Maintenance

  3. Click Continue

  4. Select Enter/Revise Required Accounts

  5. Click Next

User defined transactions assigned to Transfer account found. User defined transactions assigned to Transfer account should only be used to adjust invoices or customer balances that are in error. The total amount of transactions found is 50.00.

See the next error explanation.

User defined transactions assigned to Accounts Receivable found. User defined transactions assigned to Receivables account should only be used to adjust invoices or customer balances that are in error. The total amount of transaction found is 25.00.

This message displays if the system finds any user-defined transactions at the customer level that are set up to offset the Transfer account. To get a listing of user-defined transactions that have been transacted, you can run a Miscellaneous Production Report (TAM Reports, select Report Type =Reports -Accounting, Report Choices =Misc. Production Report ) for those specific user-defined transaction codes. To find out which user-defined transaction codes offset the Transfer account, go to Utilities, Accounting, Receivables, User Defined Transactions. This listing will show you the transaction type and the offsetting account.

Note: This may be a warning message rather than an error. Receivables can be in balance, and you will still receive this message if you have transacted user-defined transactions that offset the Transfer account. If you have added user-defined transactions that offset the Transfer account, you will receive this message until the month is posted.

Record found without Reference, Journal number, and description type filled.

Record

Key

Pol_idx

Trans

A

B

D

Flag

State

Prt

Month

Amt

Balance

351

C

BOXHI-1

PAY

1

1

1

c

 

N

9710

25.00

0.00

Journal Entries made to the Transfer account are not in balance. Journal Entries made to Transfer account for the report period do not balance. Debits are NOT equal to Credits for Transfer account. Run Status of Accounts report for Transfer account to examine problem further.

This message is shown because the Transfer account's journal entries should have equal credits and debits. If this error occurs, run a Status of Accounts for the Transfer account. If the ending balance is 0.00, this message can be ignored. This is because if you have a journal entry on the General Ledger side that is being cleared out by a JNL or a user-defined J/E from the customer side, this message will still show.

Note: This may be a warning message than an error. Receivables can be in balance and you will still receive this message if journal entries on the General Ledger are not equal.

Transfer client balance error detected. Sum of Transaction type TRN balances does not equal zero. Total of TRN transactions = ###. ##.

When you do a "Client Transfer Balance" on a customer, a TRN transaction is created for each customer involved. One will have a debit TRN and the other a credit TRN, so the total of TRNs should be 0.00. You will receive this message if the total of all TRN transactions is not 0.00. To determine which client is missing the TRN, you can run a Miscellaneous Productions Report for TRN transaction type. You then will need to review the clients listed and determine which one is missing the other half.

Current Period receivables for Invoices and General Ledger are different. The Report period difference = ###. ## Take into account any error listings here.

Refer to the Current Period checklist.

Year-to-Date receivables for Invoices and General Ledger are different. The Year-to-Date difference = ####. ##. Take into account any error listings here. If net changes for current period match, look to beginning balances for discrepancies. If net changes for current period do not match, correct them first before running for previous month to determine if that was in balance.

Refer to the Year-to-Date checklist.

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Last Revised: February 19, 2008 02:24 PM

SWE23004