Understanding Correcting A/P Out-of-Balance Conditions Running the Accounts Payable Period-End Process by Ayman Refat - April 2, 20180 Understanding Correcting A/P Out-of-Balance Conditions Concept After running an integrity report, you must correct any errors that the system detects. Errors that you may encounter include: • Report Amounts Do Not Net to Zero. • Batch Was Posted Out of Balance without Automatic Offset Entries. • Invalid Journal Entry Was Posted to an A/P Account. • Data Records Are Damaged. • G/L Offset Code Was Changed. • A/P Control Account Was Changed. • The Voucher and Payment are Out of Balance. • General Ledger Transactions Are Out of Balance. Procedure In this topic, you will review how to correct A/P out-of-balance conditions. Step Action The Report Amounts Do Not Net to Zero error occurs with the A/P To G/L Integrity Report By Batch and A/P To G/L Integrity By Offset Account reports. It is usually caused by unposted A/P batches. The system updates the A/P ledger tables, whereas the post program updates the Account Balances table. To correct this error, post all A/P batches. Step Action The example below illustrates why the integrity report shows amounts that are out of balance unless the transactions are posted. Step Action The Batch Was Posted Out of Balance without Automatic Offset Entries error occurs only with the A/P To G/L Integrity By Offset Account report. It can occur when a power failure occurs during posting or when more than one post program is active at the same time. To correct this error, determine the missing offset entries, create the balancing journal entry, and post the batch. Step Action The Invalid Journal Entry Was Posted to an A/P Account error occurs with the A/P To G/L Integrity Report By Batch and A/P To G/L Integrity By Offset Account reports. Typically, the A/P control offset account (posting edit code = M) includes only machine-generated entries with a document type of AE (automatic entry). A manually entered document, such as a journal entry, that appears in this account can cause a balancing problem. To correct this, locate the journal entry, correct or void the entry, and post it. Step Action The Data Records Are Damaged error can occur with any A/P integrity report for a variety of reasons, including hardware failure. To correct this problem: • If the damaged records are in the Accounts Payable Ledger table, you might need to use a utility program to remove them from the table. For more information, contact your system administrator. • If the records are in the Account Balances table, you might need to repost the Account Ledger. Step Action The G/L Offset Code Was Changed error occurs only with the A/P To G/L Integrity By Offset Account report. It occurs if you change the G/L offset code to which your vouchers are assigned and the system cannot find a match for the Accounts Payable Ledger records that contain the old offset code. The report prints the old PCyyyy (where yyyy equals the G/L offset code) item that is missing from AAIs under the Account column along with the total of the vouchers that include the old code. The report does not print the G/L account balance, because the system cannot find a match. You can correct this error in one of two ways: • Change the A/P amounts with the old offset codes to include the new offset code. • Set up the old offset code and retain it until you have paid all open vouchers that have the old code. Step Action The A/P Control Account Was Changed error occurs only with the A/P To G/L Integrity By Offset Account report. It occurs if you change the AAIs for the A/P control account to which the voucher G/L offset code is attached. The system cannot find a match in the Account Balances table because the association between the G/L offset code and the old account number is lost. The report prints an amount in the Detail column that is greater than the amount in the Balance column. The difference should equal the old A/P control account balance amount. To correct this problem, locate the old A/P control offset account total and manually add it to balance this account. Step Action The Voucher and Payment are Out of Balance error occurs only for batches with a batch type of W (without match) on the A/P Payments To G/L By Batch report. It occurs for one of the following reasons: • A void to a transaction that does not void related transactions. • A power failure or other problem during the post process. • Data records are damaged. To correct this problem, determine which amount is incorrect by printing the Manual Payment Journal report and general journal reports. To correct a problem with damaged records, you might need to run a data file utility program. Step Action The General Ledger Transactions Are Out of Balance error can occur on the A/P Orig Doc to G/L by Batch report and A/P Payments to G/L by Batch report (batch type W only). The error can be related to either distribution amounts or automatic offset amounts. In some cases, journal entries may have been voided incorrectly. This happens when you use the wrong program to void entries. For example, you use the Journal Entry program rather than the Void Payment Entry program. To correct this problem, you might need to use a data file utility to reset the records to their original state. Then, use the correct program to void the transaction. For more information, contact your system administrator. In addition to the causes shown in the chart below, other possible causes of the General Ledger Transactions Are Out of Balance error include: • A batch posted out of balance without automatic offset entries. • An invalid journal entry posted to an A/P account. • Damaged data records. • A changed A/P control account. • An exit out-of-balance when you enter the voucher expense distribution. You have reviewed how to correct A/P out-of-balance conditions. End of Procedure.