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AR Unmatched Transaction

  • 1.  AR Unmatched Transaction

    Posted Nov 09, 2020 12:23 PM

    I have an Unmatched Transaction in RM when I run Reconcile to GL.  Here is the scenario using example amounts for clarity:

    - Customer Invoice on Feb 11, 2020​ for $1,000
    - Customer pays invoice on Apr 23, 2020 LESS a 2% discount $980. This leaves an open balance on the invoice.
    - We issue a credit on Jun 16, 2020 for the 2% discount amount $20 and apply to the original Feb invoice

    Now when I run a Reconcile to GL for Feb - Jun 2020 I see the credit we issued ($20) as unmatched.  Below in Potentially Matched I can see the Receivables Transaction for the original invoice amount $1000 and the General Ledger Transaction for the discounted amount $980.

    Why didn't these three transactions tie out?  Is there some other way to do this that GP will recognize?

    Rick Roen
    Seeds by Design
    Willows CA
    Academy - Online Interactive Learning from Experts

  • 2.  RE: AR Unmatched Transaction

    Posted Nov 10, 2020 07:54 AM

    Good Morning,

    Can you confirm if the Credit memo is showing up in the subledger side of the reconciliation routine or the GL side?  you said unmatched, but you didn't say on which side.

    The 1,000 invoice and the $980 could end up in the potentially matched because the ​of the discount taken.  Are you tracking discounts separately in the GL?  If so, are you including that account(s) in the list that you're running the routine against?

    99.99999% of the time, the items in the potentially matched are fine and don't cause a subledger to GL difference.  It's almost always something in the unmatched section.  So the big key is to understand what causes things to appear in potentially matched rather than spend a lot of time digging into why they aren't in the "fully matched" section.

    The reconcile to GL routine doesn't "tie out" all the applies - it's just looking to see if it can find a transaction in the subledger to match the GL and vice versa.  It doesn't look for that extra $20.00 to zero out the $1,000 invoice.  It's looking for a $1,000 invoice hit in both places (because that's the subledger invoice) and a $20.00 hit in both places for that individual credit memo.  They are independent documents with separate GL postings so the routine matches them separately.

    With regard to the credit memo, that document was created separately from the invoice and the payment so it won't "tie out" to those two so far as "980+20=1,000", but you should see hits in the subledger and the GL for the credit memo itself.  Things that can cause the credit memo to appear in the "unmatched" section include:
    1.) The credit memo hasn't posted to the GL and is sitting in an unposted batch, was accidentally deleted, or the distributions were modified before posting the separate GL batch.
    2.) The credit memo was posted to one period in the subledger and another in the GL with the GL period being outside the date range on your reconcile routine.
    3.) if a document was voided in a different period in the subledger than the GL (not likely in your scenario).
    4.) Check your apply date and apply posting dates.  If those get off, especially with mutlicurrency, you can see some differences.

    Take a look at the suggestions above.  If none of those shines a light, we can dig deeper.



    Samantha Higdon ,CPA,CGMA
    Lagom, LLC
    Carmel IN

    Academy - Online Interactive Learning from Experts

  • 3.  RE: AR Unmatched Transaction

    Posted Nov 10, 2020 10:51 AM
    Thank you Samantha, I appreciate your time in trying to solve this.

    I have little experience with GP, so bear with my questions.

    The Credit Memo is showing on the subledger side.  I cannot find a match in any of the transactions searching by amount or CM#.  The original invoice is from Feb 2020 and the CM was issued in Jun 2020.  The Reconcile to GL report date range is Feb 1, 2020 to Oct 10, 2020.

    We do not use multicurrency.
    I understand that the Potentially Matched transactions are usually to be ignored.

    "Are you tracking discounts separately in the GL?" - Yes, Discounts have their own GL account
    "If so, are you including that account(s) in the list that you're running the routine against?" - I don't understand.  Is there a setup for the Reconcile to GL routine that should include this GL account?

    I can see this Credit Memo in the GL with transaction date 6/16/2020 Source Document "SJ".

    Let me know what else I can check.

    Thanks for your help!

    Richard Roen
    Seeds by Design
    Willows CA

    Academy - Online Interactive Learning from Experts

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