Aged Accounts Receivable and Aged Accounts Payable Do Not Tie Out to the General Ledger Receivables and Payables Balance or the Customer or Vendor Balance

Why doesn't the Aged Accounts Receivable and Aged Accounts Payable tie out to the General Ledger Receivables and Payables Balance or the Customer or Vendor Balance?

 

The issue is that the intent of the Aged A/R and A/P Report are meant to be reports that assist the user in determining what Cash Inflow and Outflows will occur over a period for Receivables and Payables. By design, these reports are not meant to be Reconciliation reports to the General Ledger. The primary area where this Reconciliation issue is manifested is with Foreign Currency. The Aged Reports are automatically going to be run using the latest exchange rate in the Currency Table. Therefore, unless the General Ledger Periodic Activities, Currency, Adjust Exchange Rates process is run to post the Unrealized Gains and Losses and update the Remaining Amount ($) field in the Customer or Vendor Ledger Entries and in turn the General Ledger Balances, the Aging Reports will not tie to the Subsidiary Ledger Balance and therefore will not reconcile to the A/R or A/P Balance Sheet Amounts.

If Foreign Currency is not being used, then the A/R and A/P General Ledger Accounts should be analyzed to make sure that entries have not been directly posted to the G/L Accounts without hitting the subsidiary Customer or Vendor Ledger.