Article ID: 8707

Correcting an Accounts Payable Imbalance When the Difference Begins on the Day After Your PCLaw Start Date or Prior and There are Closed Months

An imbalance between the Payable Listing and G/L also appears as difference in the Journal/G/L column under the Accounts Payable section of the G/L Reconciliation Report.

Take the following steps to reconcile differences that appear under the Journal/G/L column if the imbalance begins the day after your PCLaw start date or prior and there are months closed:

  1. Click Reports, select Accounts Payable, and Payable Listing... to open the Payable Listing window.
  2. Enter 1/1/1982 in the Invoice Date - Start Date box and enter the day immediately before your PCLaw start date in the Invoice Date - End Date box.
    NOTE: For example, enter 12/31/2007 in the Invoice End Date box if your PCLaw start date is 1/1/2008.
  3. Enter 1/1/1982 in the Due Date - Start Date box and enter 12/31/2199 in the Due Date - End Date box.
  4. Enter the day immediately before your PCLaw start date in the Payments Up to box.
  5. Select Default from the Layout drop-down list.
  6. Select Output options.
  7. Leave all other fields and report options at their default values.
  8. Click OK to run the report.
  9. Review the amount for each vendor in the Outstanding column and make note of any incorrect balances.
  10. Take one of the following actions:
    • Continue to the next step and do not make any adjusting entries if the Outstanding amounts for each vendor is correct as of the day before your PCLaw start date.
    • Enter a New Payable for each vendor with an incorrect Outstanding balance (Opening Balance) as of the day before your start date.
    NOTE: Enter a negative amount to adjust the balance down and a positive amount to adjust the balance up. The sum of the adjusting Payable entries equals the amount of your imbalance. If the adjustment corrects your imbalance, you do not need to continue to the next step. You cannot date the adjusting entry in a closed period so refer to your firm's accountant or bookkeeper if you are not sure when to date a correcting entry.
  11. Return to the PCLaw desktop.
  12. Click G/L, select General Journal, and Report... to open the General Journal window.
  13. Enter 1/1/1982 in the Start Date box.
  14. Enter the start date for your books in the End Date box.
  15. Select Output options.
  16. Click OK to run the report.
  17. Make a note of any incorrect debits or credits to the General Liabilities G/L Account (2000).
    NOTE: If you do not see any debits or credits to the General Liabilities G/L account, no G/L opening balances exist.
  18. Enter a G/L Adjustment in the amount of the imbalance.
    NOTE: A debit to the General Liabilities G/L account decreases the balance and a credit increases the balance.
  19. Rerun the G/L Reconciliation Report and check mark Reread G/L Information to ensure there is no longer an imbalance.