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A/R balance on the Chart of Accounts does not match A/R reports

The accounts receivable (A/R) balance on the Chart of Accounts (COA) does not match the A/R balance on the A/R Aging Detail or Open Invoices report.

Why this is happening

There are several causes for this issue:

  • Different settings in the report and on the COA. (Run the reports and change the settings to match the COA.)
     
  • Rebuilt names. (Resort the Name, Account and Item Lists, then close & reopen the company file.)
     
  • Damaged links or data. (Use standard data damage troubleshooting.)
     
  • Transactions do not have a Customer:Job name. Run reports to find transactions that are causing the discrepancy.)
     
How to fix it

To correct different settings:

  1. Run the A/R Aging Detail report: On the Reports menu, select Customers & Receivables > A/R Aging Detail.
  2. Set the Dates to All.
  3. Click Modify Report, and then click the Advanced button and select As Of Report Date.
  4. Run the Open Invoices report: On the Reports menu, select Customers & Receivables > Open Invoices.
  5. Repeat steps 2 and 3 for the Open Invoices report.
  6. Compare the two reports:
    1. On the View menu, select Multiple Windows.
    2. On the Window menu, select Tile Vertically.
  7. If the reports still do not agree with the COA, proceed to the next solution.

To correct rebuilt names:

  1. Re-sort the Master Names List, the Chart of Accounts and the Item List.
  2. Close and reopen the company file.
  3. Check for rebuilt names:
    1. On the Lists menu, select Other Names List.
    2. If you see a number, followed by [Rebuilt], it is a rebuilt name. Determine the type of name it is by running a QuickReport.
    3. Move the name to the appropriate list. For help with this, open QuickBooks Help, and type "changing name type" in the search field.
  4. Check the reports again. If they still do not agree with the COA, proceed to the next solution.

To repair damaged links or data:

  1. Use standard data damage troubleshooting 
  2. When the verification detects no problems, run the reports again.
  3. If the reports still do not agree with the COA, proceed to the next instructions.

To find and fix Transactions that do not have a Customer/Job name assigned:

  1. Determine what year the difference between the Balance Sheet and A/R Aging report started.
    1. Run a Balance Sheet Standard report on Accrual Basis.
    2. Modify the report to total by year.
      1. Click the Modify Report button.
      2. Click the Dates drop-down arrow and select All.
      3. Change the Display Columns by drop down field to Year in the Columns section.
      4. Go to the Header/Footer tab and edit the Report Title to Balance Sheet by Year.
      5. Click the OK button
      6. Click the Memorize button at the top of the report and click the OK button. (You may need this report again later.)
      7. Note the ending balance for Accounts Receivable for each year.
    3. Open the A/R Aging Summary report.
      1. Change the report date to the first year ending date from the Balance Sheet by Year report.
    4. Compare the total from the A/R Aging Summary report to the Balance Sheet to determine if the discrepancy started that year
      • If the totals match then move the date forward one year on the A/R Aging report until you get to a year that doesn't match the A/R Balance Sheet total for that year. Move on to Section II when you have determined what year the discrepancy starts.
  1. Locate transactions in Accounts Receivable that are causing the discrepancy
    1. Double click the Accounts Receivable total on the Balance Sheet by Year report for the year the discrepancy started, this will bring up a Transactions by Account report.
    2. Change the Total by field at the top of the Transactions by Account report to Customer.
    3. Scroll to the end of the Transactions by Account report totaled by Customer and look for a total under No Name.
      1. If you see any transactions under the No Name section you need to determine which Customer/Job these should be assigned to and edit the transactions accordingly.
      2. You can edit these transactions by double clicking on them from the report.
        • After you have edited these transactions, you may have to relink payments to invoices; Go to Receive Payments and apply available credits to the open invoices.
        • Note: You cannot edit General Journal entries under No Name that were created by the Condense Data Utility.
    4. Refresh your A/R Aging Summary report and Balance Sheet by Year report and compare the totals.
      1. If the totals on these reports match you have corrected the issue, you can verify the totals for all dates as well.
      2. If there is still a discrepancy continue with the steps in Section III.

 

  1. Compare Accounts Receivable transaction detail to the Open Invoices report
    1. Go to the Window menu in the top of QuickBooks, select Close All.
    2. Open the Balance Sheet by Year that you memorized earlier: Click the Reports menu > Memorized Reports > Balance Sheet by Year.
      • Double click the A/R total for the year your discrepancy started to bring up the Transactions by Account report.
      • Change the Total by setting in the top of the Transactions by Account report to Customer.
    3. Minimize the Transactions by Account report, then exit the Balance Sheet by Year report.
    4. Go to the Reports menu  > Customers & Receivables > Open Invoices.
      1. Change the report date to the same year as the Transactions by Account report.
      2. Click the Modify Report button, click Advanced , change the Open Balance/Aging option to Report Date.
      3. Click OK in Advanced Options, Click OK in the Modify Report window.
    5. Go to the Window menu in QuickBooks, select Tile Horizontally. This displays the reports so you can compare them more easily.
    6. Compare the Transactions by Account totaled by customer to the Open Invoices report.
      • Look for Customers with balances in the Transactions by Account report that do not match or do not appear on the Open Invoices report, e.g., Acme Customer shows a $1,000.00 total on Transactions by Account report, but only shows $200.00 on the Open Invoices report or Beta Customer does not appear on the Open Invoices report but shows a balance on the Transactions by Account report.
    7. Double click on transactions from the Transactions by Account for customers that don't appear on the Open Invoices report.
    8. Enter the missing Customer/Job on the transaction. 
      • You may need to re-link payments to invoices after adding the Customer/Job.
      • You can view the link between payments and invoices by clicking the History button at the top of the Invoice or Customer Payment window.
    9. Repeat steps 7 and 8 for each discrepancy transaction you find on the the Transactions by Account report.

Once you have completed these you can compare the Balance Sheet Standard and A/R Aging or Open invoices reports to verify whether these totals now match. If you still find a discrepancy between the reports use the Balance Sheet by Year and Aging Summary to determine the next year of the discrepancy and repeat Sections II and III of these steps to find and edit the other transactions that are causing the discrepancy.

To compare Open Invoice reports:

  1. Run an Open Invoices report: On the Reports menu, select Customers & Receivables > Open Invoices.
  2. Click the Modify Report button:
    • Click the Dates drop-down arrow and select All.
    • In the Columns list, select Type, Date, Num, and Open Balance.
    • Click the Advanced button and select Current (faster).
    • Click OK to return to the Modify Report: Open Invoices window.
  3. On the Header/Footer tab, and add the word Current to the Report Title.
  4. Click OK to return to the modified report.
  5. Repeat steps 1 - 4 to open a second open Invoices report. However, make the following changes:
    • When you click the Advanced button, select Report Date instead of "Current (faster)."
    • On the Header/Footer tab, add the words Report Date, instead of "Current" to the report title.
  6. Compare the two reports. See step 6 in "Different settings" for instructions on how to view reports side by side.
    1. If the totals are the same, these reports are not identifying the damaged links or transactions.
    2. If the totals are not the same, compare the reports line by line. If any transactions do not match, they are damaged.
  7. For any damaged transactions:
    1. Memorize the damaged transaction using the date and document number:
      • In either one of the reports, double-click the transaction to open the form.
      • On the Edit menu, select Memorize Invoice.
      • In the Name field, enter the original transaction date and document number, and then click OK.
    2. Delete the damaged transaction:
      • If the transaction is not open, double-click it from the report to open it.
      • On the Edit menu, select Delete [transaction type]. If a confirmation message appears, click OK.
    3. Create a new entry from the memorized transaction:
      • On the Lists menu, select Memorized Transaction List, select the transaction you memorized, and click Enter Transaction. The form opens pre-filled with the transaction information.
      • Edit the Date and document number on the new transaction to match the information used to name the memorized transaction. The Memorized Transaction List displays this information in the Transaction Name column.
      • Click Save & Close to save the new transaction.
    4. Re-link the transaction: Re-link Invoices to Payments or re-link Payments to Invoices.
      Re-linking example:
      • If the item was a paid invoice, on the Customers menu, choose Receive Payments.
      • Click the Received From drop-down arrow and select the customer name.
      • In the Applied To: area, select the reentered invoice, and click Set Credits.
      • Select the credit amount, and click Done to apply the original payment to the recreated invoice.
      • Click Save & Close to complete re-linking the entry.
    5. Repeat for each damaged transaction.
    6. If the two Open Invoices reports match, but do not match the COA balance, leave one of the reports open.

To compare the Open Invoice Report to the Customer Balance Summary:

  1. On the Reports menu, select Customers & Receivables > Customer Balance Summary.
  2. Click the Modify Report button. On the Modify Report window:
    1. Click the Dates drop-down arrow and select All.
    2. Click the Advanced button.
    3. Under Display Rows, select the Active option.
    4. Click OK.
  3. Click OK to return to the report.
  4. Compare the totals for each customer on the Customer Balance Summary with those on Open Invoices. If the amounts do not match:
    1. In the Customer Balance Summary report, double-click the amount to open the Customer Balance Detail report.
    2. Click the Modify Report button.
    3. On the Display tab, in the Columns list, select Open Balance, and then click OK.
    4. Compare the amounts in the Open Balance column with those in the Amount column.
    5. Any transactions that are different are damaged. Memorize, delete, reenter the damaged transactions and re-link them. See step 7 in "Compare Open Invoice Reports" for instructions.
    6. For additional information, see Why is my balance sheet out of balance?

If the A/R Aging Detail and the Open Invoices report still do not agree with the COA, your next step is to troubleshoot the cash-basis balance sheet.

Note: The new Customer Snapshot feature in QuickBooks 2011 helps you manage customer accounts. You can use it to assess your customers' average days to pay, outstanding balance and credits, and purchase history, which lets you make timely decisions about customer requests.

 

 

If these solutions don't resolve the issue, you can read discussions and post messages and questions relating to your issue on the Intuit QuickBooks Community site for free. You can contact an agent for additional guidance. Fees may apply.

 

KB ID# SLN40566
12/22/2014 1:15:33 PM
QYPPRDQBKSWS01 9102 Pro 2013 633fc2