AR TO GL RECONCILATION

AR TO GL RECONCILATION

AGING-7BUCKETS --closing balance of the previous month or opening balance of the current month

TRANSACTION_REGISTER --Identify the Invoices, Credit Memos, Debit Memos and supplementary Invoice Details

APPLIED RECEIPT REGISTER --to identify the receipts which are adjusted against invoices/Debit memos

UNAPPLIED RECEIPT REGISTER --to identify the receipts which are lying unapplied to any invoices/Debit memos

ADJUSTMENT REGISTER --to identify the small balance adjustments those were done on invoices

INVOICE_EXCEPTION_REPORT --to adjust the transaction register for any transactions that are not opens to receivables

and therefore do not show up on your aging

AGING-7BUCKETS --report as of the current months closing for closing balanceArithmetic Process for reconcile AR

Open aging

+ Transaction register balance

+/- Adjustment register balance

(-) Invoice Exception Balance

(-) Unapplied Receipts Balance

(-) Applied Receipts Balance

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Arithmetic Total should be equal to the closing balance

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Now compare the AGING -7BUCKETS - GL ACCOUNT with the TRAIL BALANCE to see if the balance in the Sub Ledger as shown by the aging report is the same as in the Trail Balance.