It is important for accounting purposes to ensure that certain nominal ledger balance sheet accounts reconcile to the relevant departmental reports.
This is often required as part of the month end process.
However, whilst reports are available to produce schedules of balance sheet accounts at the month end (See "Schedule Nominal" option), this in itself does not produce a route to reconcile that these are correct.
In order to derive that the schedules generated are correct and that the balance sheet balances with the departmental reports, the system will produce reconciliations of a number of balance sheet accounts every night.
The following accounts are reported on daily :-
- Sales Ledger Control Account
- Purchase Ledger Control Account
- Purchase Ledger GANI Control Account
- Vehicle Stock Accounts (New/Used/Demo etc).
In addition, whilst no reconciliation is carried out, a parts stock list and a Work in progress report are archived each night.
These reconciliations can be reviewed using the "Reconcile" option on the Nominal Ledger Reports menu :-
The default date to report is yesterday, but any historical date is valid. Enter a date and click "Report" :-
For each nominal account, the value from the Trial Balance at the date reported is displayed, along with the total of the relevant departmental report (eg The Sales Ledger Debtors Report for nominal code 0.0.60.1). Any difference between the two is highlighted.
To find more detail on any single line, double click on the line in question :- (eg for Vehicle Stock)
If there are any discrepancies, then they can be investigated by reviewing the ledger in question and using the Transaction Report by Reference to enquire on specific stock nos or batches. To correct a schedule, it will normally be required to post a nominal journal to the control account referencing the relevant stock no/sales ledger/purchase ledger account no.