Accounts Receivable File Reconciliation Errors

A file reconciliation (file rec) error is a discrepancy between the sum of the detail for an account and the same account's balance in the general ledger. An accounts receivable file reconciliation error occurs when the sum of the accounts receivable invoice mapping accounts does not agree with the balance (less interest amounts) on the AR Aged report.

Set up invoice mapping accounts on the Invoice Mapping Accounts tab of Settings > Accounting > Accounts Receivable.

To determine whether a file reconciliation error exists, run the File Reconciliation Report. To run the report, select Utilities > File Reconciliation.

If an accounts receivable file reconciliation error exists, the amount displays in the Difference column on the report.

Diagnose an Accounts Receivable File Reconciliation Error

If a file reconciliation error occurs, perform these diagnostic steps:

• Verify that all the accounts receivable invoice mapping accounts are being added together in the general ledger.
• Verify that interest displays in the Accounts Receivable Ledger, but not the general ledger.
• Determine the period in which the difference first appeared, by going back into each prior period and comparing the general ledger balances with the balances on the AR Aged report.
• When you find the period in which the difference first appeared, run the Account Analysis report.
• Look for entries to your accounts receivable accounts that are not invoice (IN), cash receipt (CR), or conversion (IX, XD) transactions.

Common Causes of Accounts Receivable File Reconciliation Errors

Some common causes of file reconciliation errors are:

• Entering a journal entry in Transaction Entry that updates the general ledger, but does not update the Accounts Receivable Ledger.
• Entering a cash receipt in Transaction Entry without an invoice or project number.
• Entering a receivable in Invoice and Receipt History without entering the receivable amount in Account Balances History.
• Entering an amount in Account Balances History for an accounts receivable account without entering the offsetting invoice and receipt history in Invoice and Receipt History.
• Changing or deleting accounts receivable invoice mapping accounts.