What to Do When the Accounts Payable Account Does Not Balance

Posted by on Feb 17, 2012 in QuickBooks Tips | 2 comments

I came across an unusual problem that an Enterprise Solutions client had, which had me baffled for awhile. The Accounts Payable amount on the Balance Sheet (61,954.21) did not agree with the Unpaid Bills Report amount(68,358.63). The Unpaid Bills Report also represents the A/P Aging Summary. Now how could the QuickBooks Accounts Payable account not agree with the Vendor’s payable amount?

This took some help from my sources, because being a Certified ProAdvisor, this allows me to tap into information that one would not find.

First I had to print both of those reports and in the Dates field, I changed those both to ALL.

Then I had to do a Test on a new company file. Basically it had to do with entering in a Bill using the G tax code, making the amount in the account (Office) field an minus figure, saving it, paying it, and then see if that amount was still appearing in the Pay Bills window.

Carrying on, I then deleted the payment and removed the minus Office line and clicked on the Recalculate button on the lower left portion of the window.

Anyway, to make a long story short, I figured out that the Receiver General Vendor account which paid the GST/HST was the problem area. When I took one of the payments and clicked on the Recalculate button, it changed the cleared cheque amount.

The figures in the display on the right may not be very readable so I will tell you what they are. The cheque cleared for $496.07 but the two amounts this is paying (188.41 + 107.14) only add up to $295.55. That’s a discrepancy of $200.52.

This means that the Receiver General Vendor balance would immediately be out 200.52 from the Accounts Payable on the Balance Sheet. How the QuickBooks software would allow that to happen is beyond me, but it did because I have the proof.

Now by going through all of the payments and clicking on amounts that added up to the cleared cheque amount, I was able to reconcile the Accounts Payable on the Balance Sheet to the Vendor account. To verify this I also printed out a Reconciliation Discrepancy Report to make sure that in adding these amount, it did not cause a problem to the previous reconciled bank account.

As you can see from the display, the report did not find any discrepancies.

I then printed a Balance Sheet, isolated the Accounts Payable and matched it up with an Accounts Payable Summary, starting from the earliest fiscal year to the current. For the sake of displaying four separate years, I will use the most current year.

You will see that the Accounts Payable Control account or Master account on the Balance Sheet displays a figure of 61,002.32, which is the same amount on the A/P Aging Summary (61,002.32). The Aging Summary represents the Vendor accounts, so that now means that both accounts reconcile.

If you ever have a problem similar to this I would suggest that you contact your nearest QuickBooks ProAdvisor because this is not something that you will want to attempt to correct. Trust me!

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2 Responses to “What to Do When the Accounts Payable Account Does Not Balance”

  1. Wonderful post. Thank for the sharing quickbooks tips and tricks. Thank you..

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