Aged Debtor/Creditor Reports – Reconciliation
Aged Debtor and Aged Creditor Reports – Reconciliation
This document explains:
- How aged debtors/creditors reports are compiled
- Reconciliation of the reports values to the chart of accounts control accounts
Aged Debtor/Creditor report
The aged debtor and creditor reports are compiled by their document dates and aged by the documents payment terms.
Aged Debtor/Creditor reports – Reconciling to debtors/creditors control
When running an aged debtor or aged creditor report, the sum of the outstanding documents and any unmatched credits should agree with the corresponding debtors/creditors control account within the chart of accounts.
Backdated Aged Reports
When running a backdated aged debtor or aged creditor report, the sum of outstanding documents and any unmatched credits as at the backdated date should equal the balance of the corresponding debtors/creditors control account within the chart of accounts as at the same date.
A trial balance can be run as at a specific date to validate the balance.
However, where a backdated aged report returns a difference between the aged report and the chart of accounts values, the difference may be associated with 'out of period' documents.
Where a document is created out of the financial period and the accounting date is later than the document date, the aged debtors and creditors reports will always respect the document date as this represents the tax point and the basis of the aging.
For example:
- A sales invoice is entered in March 2022 and backdated to 15 January 2022.
- The January financial accounting period was closed so the document accounting date is forced to 1 February 2022.
- The aged report will show the outstanding document within the 31 January 2022 aged report period, but the transaction would not have been posted to the debtors account until the 1 February 2022
- A back dated aged report run as at 31 January 2022 will differ from the debtors account as at 31 January 2022 by the value of the sales invoice
A quick option to confirm 'out of period' documents is to:
Run an aged report as of today's date and compare the balance with the current balance of the aged control account in the chart of accounts.
If this agrees, then further analysis on the backdated period will need to be conducted.
Custom reports can be used to identify the documents document, matching and accounting dates to help reconcile backdated aged reports.
