Common Reasons the Checking Account is Out of Balance

*When posting a check, deposit or bank charges,  the user posted these entries back to checking account code. Doing this debits and credits the same account code so the net result is zero.

*Checks that were written did not get posted to the General Ledger.  Two reasons the checks may not have been posted are  (1)the General Ledger was not activated (turned on) at the time the checks were written, so journal entries will have to be made to the journal to reflect these checks and (2)While printing the checks your hardware received a power surge or an error message that prevented RFMS from posting to the journal. Journal entries will have to be made to the journal to reflect these checks.

*When discounting off a customer's balance in order entry, the user posted the discount to the bank account code.

*Be sure that the beginning balance for the new month is correct. To ensure that the beginning balance is correct, print the month end report for AR for the prior month and compare the ending balance on the report to the beginning balance on the journal listing.

To print the month end report for accounts receivable Accounting>Month End>A/R Reports

Debits: Debits to accounts receivable come from job costing. When you Job cost a job in order entry the system will debit AR, credit Sales, debit inventory, credit cost of materials and reverse any customer deposits.

Credits: Credits to accounts receivable come from receipts. Receipts are payments posted to the customer invoice at the time of payment.