Minimum Version Required: 25.01
Pre-Conditions
This can only be done using Encompass Financials.
Steps
Follow these steps once AR and AP have been closed through the date being reconciled. Using an example date of 9/30/25 for below scenarios:
ACCOUNTS RECEIVABLE Subledger Reconciliation
1. Run a trial balance or balance sheet for AR with Statement Date = 9/30/25.
2. Run the Accounts Receivable Aging report with a Statement Date = 9/30/25.
If they don't match:
Navigate to the Financial Reporting dashboard, run the Accounts Receivable Sub-Ledger Reconcilation report for 9/30/25.
If there are offsetting debit and credit dollar amounts, then do a mapping change to move the dollars between 2 accounts.
If there is a real difference, run the report on various dates to determine what day AR went off track.
Search invoices on that date for the dollar amount that is off.
Adjust the Accounts Receivalbe Aging report to see it by "Location/AR Account Map" to identify unexpected pairings (filter further on specific location, add Customer, and AR Account for better details).
ACCOUNTS PAYABLE Subledger Reconciliation
1. Run trial balance or balance sheet for AP with Statement Date = 9/30/25.
2. Run Accounts Payable Agingwith a Statement Date = 9/30/25.
If they don't match:
Navigate to the Financial Reportingdashboard, run Accounts Payable Sub-Ledger Reconcilation report.
If there are offsetting debit and credit dollar amounts, then do a mapping change to move the dollars between 2 accounts.
If there is a real difference, run the report on various dates to determine what day AP went off track
Search purchases on that date for the dollar amount that is off.
Adjust the Accounts Payable Aging report to see it by GL account to help compare against the Trial Balance.
INVENTORY Subledger Reconciliation
1. Run trial balance or balance sheet for Inventory with a Statement Date = 9/30/25.
2. Run the Inventory Valuation report with an End Date = 9/30/25. Look at "Posted Value" in the middle of the report.
If they don't match:
Navigate to the Financial Reporting dashboard, and run the Inventory Sub-Ledger Reconciliation report.
If there are offsetting debit and credit dollar amounts, then do a mapping change to move the dollars between 2 accounts.
If there is a real difference, run the report on various dates to determine what day Inventory went off track.
Search purchases/invoices on that date for the dollar amount that is off.
UNDEPOSITED FUNDS Subledger Reconciliation
1. Run trial balance or balance sheet for Undeposited Funds with Statement Date = 9/30/25.
Navigate to the Invoices table and filter to invoices dated <10/1/25 but have a deposit date >9/30/25.
2. If the sum of the "Credit" column on the Invoices table does not match the undeposited funds total:
Go to the Financial Reporting dashboard, and run the Undeposited Funds Sub-Ledger Reconciliation report.
If there are offsetting debit and credit dollar amounts, then do a mapping change to move the dollars between 2 accounts.
If there is a real difference, run the report on various dates to determine what day Undeposited Funds went off track.
Search the Deposits table or the Invoices table on that date for the dollar amount that is off.
Look at the Invoice table for "AR Receipt" invoices that were received on a different date than they were deposited.
Best Practices
Use the "Sub-Ledger" reports on the Financial Dashboard to help troubleshoot variance.
Walk back the date on the Sub-Ledger report until the variance disappears, to help identify when exactly data went off track.
Use the exact amount of the difference in filters to see if variance comes from one source or multiple.
Use the Journal Entry Details report to pinpoint specific transactions.