Month End Reconciliation


Perform the following reconciliation steps through period 13 before beginning the Year End Close process



1


 Run the Diagnostic Tools

 

  • System Administration > Diagnostic Tools
o General Ledger Memo Balance

o General Ledger Requisition Amount

o General Ledger Encumbrance

 

While the holding year open flag is selected and AP Invoices are being paid against prior year POs, there will be a lot of MY errors on the encumbrance report. If the errors between years zero out, you don’t need to do anything. If there are errors other than MY you will need to research and correct.
2

Prove Actual Balances

 

  • YTD Actual Expenditures = Expenditure Control Account

 

  • YTD Actual Revenues = Revenue Control Account
o You can use the Balance Sheet Report, Subsidiary Ledger Report, Account Trial Balance Reports to prove these balances.

3

Prove Encumbrance Balances

 

  • Encumbrance Control Account (Debit) = Budgetary Fund Balance Reserve for Encumbrances (Credit)

 

  • Run the Purchase Orders by GL Account for Open Amounts
    • Total for each fund = Fund Encumbrance Control = Fund Budgetary Fund Balance Reserve for Encumbrances
    • Out of Balance errors are usually caused by a PO posted to the wrong period.

4

Prove Budget Control Accounts

 

  • Revised Budget for Expenditures = Appropriations Control Account

 

  • Revised Budget for Revenues = Estimated Revenues Control Account
    • NOTE: Out of Balance errors occur from Budget Adjustments and/or Budget Completion Journal from SOY not posting correctly. o If Appropriations = Estimated Revenues, no entry is made to Budgetary Fund Balance Unreserved.
    • If Appropriations <> Estimated Revenues, the difference is posted to Budgetary Fund Balance Unreserved.

5

Prove Accounts Payable

 

  • Run A/P Invoice History by G/L Account. Select History by Fund. Invoice selection = Only Open Invoices. Last check date should = the last day of the period for the month that you are reconciling.

o Grand Total by Fund = A/P Control Account by Fund

 

  • Common out of balance errors here occur when a check written in the current year was voided in the new year. A voided check will create a journal in the period when it was voided but will open the invoice as of the invoice date. This causes the invoice to show up on the A/P Invoice History report, when technically it should have been considered paid at the end of the period.
6

Prove Cash

 

  • For sites that use Pooled Cash, ensure that all the Pooled Cash Account in the Pooled Cash fund = Equity in Pooled Cash in all the other funds.

 

  • For sites that use a Treasury Fund, with Due to objects, ensure that each Due To object in the Treasury = the Due From each other fund.

7

Capital Assets

 

  • While these steps are not a normal part of the Month End Reconciliation, this is a good time to run these reports.

 

  • Run and print Asset List by G/L Account Report. Define by Governmental or Proprietary, Select Asset Status

           = Active, and Include Capitalized Assets.

 

  • Total Land = Balance Sheet total land, Total Equipment = Balance Sheet total equipment, etc.

 

  • Run and Print Asset Disclosure Report. Total of Type 1‐6 accounts.

Note: This is the beginning of the fiscal year.