Validate/Balance Accounts Receivable Report Overview and Checklists

Product : TAM Series 6 

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 the current period (the month for which the report is run) and for year-to-date differences. 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.

Note: Accounting support provides detailed assistance for out-of-balance situations that have occurred within the past six months. For agencies seeking assistance for balancing situations that are over six months old, Accounting support provides this troubleshooting checklist so the discrepancy can be investigated by the agency. Accounting support also assists with a balancing journal entry at the agency's request. If your agency requires additional detailed assistance, you will be referred to Applied Consulting Services department for pricing information.

This document is divided into the Report Overviews and Out of Balance Checklists sections.

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Out of Balance Checklists: 

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 line 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 was run with all users off the system?        Yes          No 
When was the last time the report indicated you were in 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 done? The only items hitting this account should be deposits, disbursements and system-generated Month-End J/Es.       Yes          No

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

The computed balances calculated on line 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 have to review the following reports to assist you if you cannot locate the error.

Have you posted up 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 the customer side in one month but the General Ledger side in another.       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.

      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. Compare the ending balance to the next month's opening balance. Do they all match? Run a Status of Account on your Cash Accounts. Do you see the amount of your out of balance there?       Yes           No
Have you validated the clients? If you had any errors, correct them and rerun the validation again. Correct any errors  through DOSTAM-UT-2-2-9.       Yes           No

Do you have any error 7's? A client with an Error 7 can lead to a year-to-date discrepancy. To search for Error 7's, an Environment Variable must be set before running the Validate/Repair Client Balances.

Follow these steps to validate for Error 7's on version 6.03-6.2:

  1. Open an MS-DOS prompt and access the TAM drive. (If TAM is on F:, type F: and press [Enter].)
  2. Type CD\TAM and press [Enter]. You should be at a \TAM prompt. 
  3. Type SET ERROR7=1 and press [Enter].
  4. Type \NETINFO and press [Enter]. A few lines will scroll on the screen. 
  5. Type SET NWC=1 and press [Enter]. Type MENU and press [Enter]
  6. Sign into DOSTAM
  7. Access UT-2-2-9 Validate/Repair Client Balances.  

Follow these steps to validate for Error 7's on version 6.3:

  1. Open an MS-DOS prompt and access the TAM drive. (If TAM is on F:, type F: and press [Enter].)
  2. Type CD\Wintam and press [Enter]. You should be at a \WINTAM prompt.
  3. Type SET ERROR7=1 and press [Enter].
  4. Type SET NWC=1 and press [Enter].
  5. Type SET ASMC=1 and press [Enter].
  6. Type DOSMENU and press [Enter].
  7. Sign into TAM.
  8. Access Utilities, Miscellaneous, System Clean Up Menu (UT-2), 2-Clean Up Utilities, 9-Validate/Repair Client Balances.

Note : If you are on version 6.3 and would like to run the validate routine through night processing rather than manually, add the environment variable ERROR7=1 in the [ENV] section of the WINTAM.INI on the workstation that runs Night Utilities prior to running night processing.

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

Note: Clients that had transactions purged or archived will appear with Error 7's. These reports will have a "Purge Balance Forward" transaction at the top and do not need to be faxed to Accounting Support.

      Yes             No
Have you run the Month-End Balance Receivables report (through 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 back for prior months, you have 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 only look for a current period difference.

      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 off 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 offsetting the Accounts Receivable account done? To determine this, you will need to run a Miscellaneous Production Report for only JNL transactions. This report can be found under Reports-Management.

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

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 WinTAM Reports, click the User button, then select Report Type =User-Defined Reports, Report Choices =Broker Suspense Account Report ) and select the Accounting month in which the Balance Receivables report was run.

      Yes            No

Do the MNTHEND entries on a 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 you are out of balance.

To run a Generated Journal Entries report, access Utilities, Accounting, General Ledger, Regenerate Journal Entries. Run the Generated Journal Entry report for the months you are out of balance.

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

      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.


Report Overviews Report Overview: Page 1 - Current Period 

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

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: Writeoff Journal Entries            -211.13
Plus: User Defined Transactions              -50.00
Plus: Service Charges              366.20
Plus: Journal Transactions (JNLs)              -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 parameter that you ran the Balance Receivables Report with. 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 when 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.

If the year-to-date balances are not in balance, you are referred to an attached error report, which will be explained later.

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) gives error listings based on what TAM finds when doing the checks and balances routine. Some messages are more warnings 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 is more of a warning message than an error. Receivables can be in balance and you will still receive this message if debit and credits do not equal in 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.  

The message is shown 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 is more of 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 which client(s) has the discrepancy, run a Production Report (from WinTAM Reports, select Report Type =Reports-Management, Report Choice s=Production Report, or from DOSTAM, RP-2-1 ) with the following parameters: All clients, Transaction types CRI and DBI only, current month, sort by clients and for Output use Run complete report; item number. 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. Running a Balance Sheet (from WinTAM Reports, select Report Type =Reports-General Ledger, Report Choices =Balance Sheet, or from DOSTAM, GL-13 ) or Income Statement (from WinTAM Reports, select Report Type =Reports-General Ledger, Report Choices =Income Statement, or from DOSTAM, GL-12 ) and responding Yes to "Recalculate Month-End Journal Entries?" should 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 1 110 10/18/97   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 record.

Record Journal Doctype Refer A B D Account Date Desc Debit Credit Month OP_ID
482 1 D 36 1 1 1 110 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 the Transfer account is defined in chart of accounts and/or defined under the required accounts under DOSTAM-UT-6-1-3.

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 next error explanation.

User defined transactions assigned to Account Receivables 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 will be shown 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 (from WinTAM Reports, select Report Type =Reports-Accounting, Report Choices =Misc. Production Report, or from DOSTAM, RP-29 ) for those specific user-defined transaction codes. To find out which user-defined transaction codes offset the Transfer account, go into DOSTAM-UT-6-3-(L)ist. This listing will show you the transaction type and the offsetting account.

Note: This is more of a warning message 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

The record above cannot locate the appropriate receipt or deposit entry because it has no reference number. This transactions is either in Error or made prior to installing v3.0. Locate records in report to follow and correct at the end of this report.  

See next error explanation.

PAY, RET, ADVs found with no refer, doctype, or journal, total = $-25.00. These are records dating back to v2.5 or error records in file. This total reflects all of the transactions listed above that cannot locate the appropriate cash receipts or disbursements records.

Errors 11 and 12 go together but print separately. This message will appear when there is a PAY, ADV or RET on the customer level that does not have the Refer, Doctype and Journal fields filled in. It will list only when all three fields are blank. You will need to determine what the doctype, journal and refer are for the above items. After this report prints, you will receive the following message: "Error transactions found. Repair now (Y or N)?" To fix the transactions causing this error message, answer Yes. You will receive a screen with the transaction information, which will include the customer number, month in which item was done, amount and balance of the item. you are prompted "Enter line number of Transact to select <Return> to end." Enter the number. The program will take you to the blank refer field. Fill in the REFER, DTYPE (whether it is a deposit or check), and JOUR (journal number) fields. Once you have fixed these transactions, these two error messages will not print the next time this report is run.

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 is more of 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, it creates a TRN transaction 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

SWE3189