Classic Balancing Flow Charts Release date: 2/16/2011 Version: Classic (2.x) Summary: A flow chart for balancing accounts to the. Contents Balancing the Utility Billing Cash Clearing Account... 2 Balancing the Accounts Receivable Cash Clearing Account... 3 Balancing the A/R Account to the Utility Billing A/R Accounts... 4 Balancing the A/R Account to the Accounts Receivable A/R Account... 5 Balancing Utility Billing Customer Deposits to the... 6 Balancing Accounts Receivable Deposits to the... 7 Balancing Payroll to the, Part 1 of 2... 8 Balancing Payroll to the, Part 2 of 2... 9 Balancing Accounts Payable Invoices & Checks to the... 10 Balancing Accounts Payable Purchase Orders to the... 11 Caselle, Inc. Copyright 2011. All rights reserved. Page 1
Balancing the Utility Billing Cash Clearing Account Review the Cash Clearing Account Balance If the balance is ZERO, you are done! If the balance is NOT ZERO, you have just begun. Utility Billing Transaction Summary - Summarize daily totals for payments and adjustments. Detailed Ledger for Cash Clearing Account - Credit Column = Cash Receipting Update - Debit Column = Utility Billing Update Daily Totals from the Payment column on the Transaction Summary with the Credit column on the Detail Ledger. Print Utility Billing Transaction Register for detailed payment information for the problem dates. Print Cash Receipting Receipt Register for detailed payment information for the problem dates. Caselle, Inc. Copyright 2011. All rights reserved. Page 2
Balancing the Accounts Receivable Cash Clearing Account Review the Cash Clearing Account Balance in the If the balance is ZERO, you are done! If the balance is NOT ZERO, you have just begun. Accounts Receivable Transaction Summary - Summarize daily totals for payments and adjustments. Detailed Ledger for Cash Clearing Account - Credit Column = Cash Receipting Update - Debit Column = Utility Billing Update Daily Totals from the Payment column on the Transaction Summary with the Credit column on the Detail Ledger. Identify dates with discrepancies. Print Accounts Receivable Transaction Register for detailed payment information for problem dates. Print Cash Receipting Receipt Register for detailed payment information for problem dates. Caselle, Inc. Copyright 2011. All rights reserved. Page 3
Balancing the A/R Account to the Utility Billing A/R Accounts Review the Cash Clearing Account Balance in the If the Utility Clearing Account is not zero, refer to Balancing the Utility Billing Cash Clearing Account. - Print and review totals on the Detail Ledger report or Report by Category for all of the Utility Billing A/R accounts. Utility Billing - Print and review the grand totals on the last page of the Accounts Receivable by Service report. If the totals MATCH the Utility Billing totals, then you re done! If the totals DO NOT MATCH the Utility Billing totals, then you have just begun. Verify Accounts and Update Amounts One method to verify accounts and update amounts is to delete the Utility Billing (UM) journal from the system. Then, re-run the Update for Utility Billing. Hints! Check for update errors and warnings. Double-check that the prior month is still in balance. Caselle, Inc. Copyright 2011. All rights reserved. Page 4
Balancing the A/R Account to the Accounts Receivable A/R Account Review the Cash Clearing Account Balance in the If the A/R Cash Clearing Account is not zero, refer to Balancing the A/R Cash Clearing Account. - Print and review totals on the Detail Ledger report or Report by Category for all of the Accounts Receivable A/R accounts. Accounts Receivable - Print and review the grand totals on the last page of the Accounts Receivable by Category report. If the balance is ZERO, then you re done! If the balance is NOT ZERO, then you have just begun. Verify Accounts and Update Amounts One method to verify accounts and update amounts are accurate is to delete the Accounts Receivable (AR) journal from the system. Then, re-run the Update for Accounts Receivable. Hints! Check for update errors and warnings. Double-check that the prior month is still in balance. Caselle, Inc. Copyright 2011. All rights reserved. Page 5
Balancing Utility Billing Customer Deposits to the Review the Utility Deposit (Liability) Account Balances in the - Print the Detail Ledger report. - Review the total on the Detail total for the Utility Customer Deposit account. Utility Billing - Print and review the Customer Deposit List for open deposits. If the totals MATCH the Utility Billing totals, then you re done! If the totals DO NOT MATCH the Utility Billing (UB) totals, then you have just begun. - Review the Detail Ledger report. - The side of the entry is generated from new deposits. Typically, this side of the entry is reported to the using the Update program in Cash Receipting. - The side of the entry is generated from entries for refunded checks. Typically, this entry is reported to the using the Update program in Accounts Payable. - The side of the entry can also be generated from transactions for deposits applied. Typically, this side of the entry is reported to the using the General Ledger Update program in Utility Billing. Utility Billing - Review the Customer Deposit List for open deposits for accuracy. - Make corrections to customer accounts, as needed. Hints! - Double-check that the prior month is still in balance. Caselle, Inc. Copyright 2011. All rights reserved. Page 6
Balancing Accounts Receivable Deposits to the Review the A/R Deposit (Liability) Account Balances in the - Print the Detail Ledger report. - Review the Detail total for the Accounts Receivable (AR) Customer Deposit account. Accounts Receivable - Print and review the Customer Deposit List for open deposits. If the totals MATCH the Accounts Receivable (AR) totals, then you re done! If the totals DO NOT MATCH the Accounts Receivable (AR) totals, then you have just begun. - Review the Detail Ledger report. - The side of the entry is generated from new deposits. Typically, this side of the entry is reported to the using the Update program in Cash Receipting. - The side of the entry is generated from entries for refunded checks. Typically, this entry is reported to the using the Update program in Accounts Payable. - The side of the entry can also be generated from transactions for deposits applied. Typically, this side of the entry is reported to the using the General Ledger Update program in Accounts Receivable. Accounts Receivable - Review the Open Deposit report for accuracy. - Make corrections to customer accounts, as needed. Hints! - Double-check that the prior month is still in balance. Caselle, Inc. Copyright 2011. All rights reserved. Page 7
Balancing Payroll to the, Part 1 of 2 Employee Wages PC Journal Check CDP Journal Wage Expense Wages Payable, Payroll Liabilities Wages Payable Cash Checking Verify the PC journal portion of the Update report with the Payroll Detail Register. Verify the CDP journal portion of the Update report with the Payroll Check Register. Verify the Is Updated Correctly the Update report to the (GL) Account Detail that is shown in Account Inquiry. Caselle, Inc. Copyright 2011. All rights reserved. Page 8
Balancing Payroll to the, Part 2 of 2 Employer Paid Benefits PB Journal Check CDPT Journal Benefit Expense Payroll Liability Payroll Liability Cash Checking Verify the PB journal portion of the Update report with the Payroll Benefits Register. Verify the CDPT journal portion of the Update report with the Payroll Transmittal Register. Verify the Is Updated Correctly the Update report to the (GL) Account Detail that is shown in Account Inquiry. Caselle, Inc. Copyright 2011. All rights reserved. Page 9
Balancing Accounts Payable Invoices & Checks to the Invoices AP Journal Check CDA Journal Expense Account AP Liability Account in each fund AP Liability Account in each fund Cash Checking Print, review, and verify the Invoice Register prior to printing checks. Verify the CDA journal portion of the Update report with the Accounts Payable Check Register. After the is updated, print the Unpaid Invoice report. Use it to verify the AP Liability accounts totals match. If the balances MATCH, then you re done. If the balances DO NOT MATCH, then you have just begun. If the balances MATCH, then you re done. If the balances DO NOT MATCH, then you have just begun. Print a Reconciliation Report Review the (GL) Reconciliation report and compare detail by GL number to the GL Detail report. Caselle, Inc. Copyright 2011. All rights reserved. Page 10
Balancing Accounts Payable Purchase Orders to the Purchase Orders EN Journal Print an Accounts Payable Open Purchase Order report. Verify the information is accurate. New Purchase Order Entry Paid or Closed Purchase Order Entry Expense Account Reserve for Encumbrance Account Reserve for Encumbrance Account Expense Update the Updating the will create YTD (Year-to-Date) entries in the EN journal as Encumbrance type entries. Caselle, Inc. Copyright 2011. All rights reserved. Page 11