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Detail Balancing of AP to Ledger Trial Balance

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The SJI process gathers all the vouchers (item and manual) and disbursements (payments and prepayments) that were keyed into the ACP for the SJI time frame. It looks at each transaction code (assigned in SJI System Accounts) and assigns the dollars and quantities of these documents to a ledger accounts. So if you know what transaction code should be hitting your ledger account, then you know what document to be looking for when balancing.

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Item Vouchers: Debit Inventory Asset for the amount of the Line Items (IV-transaction code)Debit Inventory Asset for the amount of the service items allocated to them (IV-transaction code)Credit Accounts Payable for the amount of the voucher (AP-transaction code)

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Manual Invoices: Debit GL Account for the amount of the GL Line Distribution (manual distribution) Credit Accounts Payable for the amount of the voucher (AP-transaction code)

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Disbursement Debit Accounts Payable (AP-Transaction code)Credit Bank Code Account (PM-transaction code which is normally replaced by bank code)

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Prepayments: Debit Prepayment contra-liability account or asset account (PP-Transaction code)Credit Bank Code Account (Bank Code)

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Application of Prepayment to voucher: Debit Accounts Payable Voucher Number (AP-transaction code)Credit Prepayments contra-liability or asset account (PP-transaction code)

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Step One:
Think about how you are balancing a transaction code on a document to the ledger. Example: balancing Accounts Payable subsidiary, only the AP-Transaction code should be hitting the 2020 ledger account. And if only AP transaction codes should be hitting the AP ledger account, then only vouchers (item or manual) and disbursements (regular or prepay) should be hitting that ledger account. Because that is the only time the AP-transaction code is used.

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Step Two:
Build a current SJI Exec Work file that includes the current month you are trying to balance. It can include more time than the current month.

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Step Three:
Run the standard Ledger Account detail report for the AP Ledger Account. Compare the ending Transaction Total with the Trial Balance Change Amount to see if they are the same. Or the change amount from a Ledger Account Inquiry. If they are NOT, then data has been changed AFTER the SJI was created. This could be new data added or reversed, but something has been done to documents with AR transaction codes in the month that you have already gathered the data for the ledger.

Here, the amounts $24,383.00 different. This is stating that if we re-ran the SJI's again for this time period, it would post a smaller credit to the ledger. There was a voucher or disbursement that was entered/edited/reversed using a back date, or date into a month that the SJI had already been run. What were these documents?

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Step Four:
If AP is out of balance then OTHER accounts are out of balance as well. If we can find the other accounts then it will give us a heads up of the type of voucher or disbursement record that we are looking for. Run the SJI Execution ID report called MIMIC SYSTEM JOURNAL REPORT using the parameter settings to limit this report to just entries from the AR package. SJI > Report manager > Execution ID reports > Standard Reports > MIMIC SYSTEM JOURNAL REPORT >
Key in date range to match ledger period > go to Additional Options > Answer NO to everything but AR. This will give you only the entries that posted with the ACR SJI Creation Process
Compare this report to the standard SJI Entry report MIMIC EXECUTION ID REPORT. SJI > Report manager > Journal Entry Reports > Standard Reports > MIMIC EXECUTION ID REPORT >Select AR AP to AR AP for Source parameter and the current period
This gives you all the entries that did post.

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This finds the difference for the Bank Account. Check #99-000188 was keyed after the SJI was created.

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Step Five:
Make a manual ledger entry to post the disbursement into the ledger. Debit Accounts Payable liability for $23,580.00Credit Bank Account Asset for $23,580.00

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Balancing Accounts Payable Ledger Payable Ledger Account – 2020 Now Difference of $963.00

Step One:
Think about how you are balancing a transaction code on a document to the ledger. Chemical Inventory (account 1340-4k) is out of balance by $150. The Inventory Asset is affected when a stock addition is keyed or edited. If the Inventory Asset should have $150 more, then a stock addition had to be keyed or edited.

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Step Two:
Build a current SJI Exec Work file, if one is not already built.

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Step Three:
Run the standard Ledger Account detail report for the Inventory asset account.

Compare the ending Transaction Total with the Trial Balance Change Amount to see if they are the same. Or the change amount from a Ledger Account Inquiry.

If they are NOT, then data has been changed AFTER the SJI was created. This could be new data added or reversed, but something has been done to documents that affect inventory asset in the month that you have already gathered the data for the ledger.

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Step Four:
Run the MIMIC reports for the Prepay ledger account using the steps from balancing AP.

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Step Five:
In this case, we can tell just from the LEDGER ACCOUNT DETAIL REPORT of Step Three that the issue is a corrected/edited stock addition. The TRIAL BALANCE REPORT only knows about the 1000.00 debit, which knowing how documents post would be a stock addition voucher. But the SJI Work File LEDGER ACCOUNT DETAIL report shows that document was corrected. So we need to post this edit to the inventory asset in the ledger.
Debit Inventory Chemical for $150.00Credit Accounts Payable for $150.00

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Snowball Effect of Balancing Each Account

Step One:
As you make the entries in your research we will see that the difference in the Accounts Payable is changing with each entry. Now we are only off by $953.00. We are using the other accounts affected by the Accounts Payable SJI to find the overall issue with Accounts Payable.

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Step Two:
Look at the MIMIC reports that we have been comparing.

Going back to how each document has a set of transaction codes that handle the debits and credits of that document.
The only other amount that we are off is the $953 for Electric Expense that was in the original SJI's but is not in the Execution work file.
Since there is not Transaction Code (Tr Co) for this line, that is telling us it is a manual voucher distribution. It is the GL Coding to offset the credit of a voucher. So this would be a manual invoice that has been deleted AFTER the SJI creation was run but backdated.

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Step Three:
This is manual voucher. To find out what the voucher was, we have to go back to the SJI Creation reports and search for the $953 amount.
When you ran the SJI creation, there were report created for all the vouchers and disbursements that were summarized. You should have saved them to the spool for safe keeping and ease of research. Print out the A/P TRANSACTION REPORT BY VOUCHER to the screen and search for that dollar amount.

There is only one document that makes up that amount and affects that expense account.

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Step Four:
Create a manual ledger entry to post this reversal to the ledger.
Dr 2020 Accounts Payable for $953.00 Cr 6305 Electric Expense for $953.00

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Step Five: Run your trial balance one more time to compare to the aging.

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