Month End Reconciliation in StarBuilder Session - 211

1
Month End Reconciliationin StarBuilder Session
- 211

• Presented by
• Adam Hutchins

2
Objectives

• Discuss reconciliation methods for the following
  topics
• Trial Balance
• Financial Statements
• Bank Reconciliation
• Job Cost to GL
• AP to GL
• AR to GL
• Payroll
• Contracts
• Equipment Costing
• Progress Billings

3
Trial Balance

• What to do if the trial balance is not in
  balance
• Run the trial balance report in order to isolate
  the period that is out of balance. The period
  and YTD amounts should be out by the same amount.

4
Trial Balance

• 2) Run the Transaction Detail Report by Journal
  one journal at a time.

5
Trial Balance

• Three things to look for
• Does page one of the report show a transaction
  with a missing account number?
• Does the last page show a balance other than
  zero?
• Does the report run on the GL journal show
  postings made with JC only post code? i.e. 9171,
  9172

6
Trial Balance

• The report will help identify which journal is
  out of balance.
• Run the report on select Transaction Date ranges
  to find the specific date.
• Refer to other reporting i.e. proof report,
  system update, in order to determine what account
  to effect.
• Post a one-sided journal entry to correct.

7
Financial Statements

• What to do if the Financials are out of balance
• Ask and answer three questions
• Is the Trial Balance in balance?
• Do the Assets Liabilities Equities?
• Does the current years earnings on the balance
  sheet equal the net profit on the YTD income
  statement?

8
Financial Statements

• If answering yes to question 1 and no to
  questions 2 or 3, then there is a problem with
  the setup of the financial statement parameters.
• Run four reports to compare.
• Trial Balance report
• Income Statement
• Balance Sheet
• Parameter Review report

9
Financial Statements

• Three possibilities of an incorrect format
• An account is missing from the setup.
• An account is listed more than once
• Every account should be included on the balance
  sheet and every income and expense account on the
  PL.
• c) There is an incorrect sign (/-) designation.

10
Financial Statements

• If Desperate
• Auto Generate another set of financial reports
  with a different starting line number to get
  in-balance reports and work with the new reports
  until the setup issues can be corrected on the
  original set.

11
Bank Reconciliation

• How to balance the bank statement with the
  StarBuilder Bank Reconciliation

12
Bank Reconciliation

• The statement date is the date assigned to
  reconciled records. The beginning balance is
  from the bank statement.

13
Bank Reconciliation

• Mark the records to be reconciled. When done the
  Ending Balance should match the ending balance on
  the Bank statement.

14
Bank Reconciliation

• Reconcile to the current cash balance.
• Run the report on outstanding transactions.

15
Bank Reconciliation

• Note the total of the outstanding transactions on
  the Reconciliation report.
• Confirm the cash balance on the trial balance
  report.
• The ending bank balance from the bank statement
  total outstanding transactions current cash
  balance.

16
Job Cost to GL

• How to reconcile the job cost expense and
  revenue to the GL account balances
• Run the Work In Progress-Full Questions report
  from the Job Cost Report Wizard.
• Choose Job Totals Only for the printing format
  and select YTD costs when given the option.

17
Job Cost to GL

• 2) Compare the totals at the end of the WIP
  report to job cost expense and revenue account
  balances on the trial balance report.
• Note The YTD balances on the WIP report are
  balances through the current GL accounting period
  as represented in the GL Calendar Setup.

18
Job Cost to GL

• Sample WIP report

19
Job Cost to GL

• Sample trial balance report

20
Job Cost to GL

• What to do if the balances do not agree
• Run the GL Transaction Details Report (Reporting
  on Account No.) on the accounts in question and
  ensure every transaction lists a job number.
• If every transaction lists a job number then
  proceed to step 2.

21
Job Cost to GL

• 2) Run the GL Transaction Details Report
  (Reporting on Job), click on NEXT and uncheck the
  box, Print Cost Code Billing details. This
  report is in summary by job.
• Compare this report to the WIP report for every
  job to isolate the problem job.
• The transaction detail on the job can then be
  compared to the Job Cost Detail report.

22
AP to GL

• How to reconcile the AP ledger to the AP account
  balance in the GL
• Review the Reconcile AP Balances screen.

23
AP to GL

• Print reports to confirm the balances on the
  Reconcile AP Balances screen.
• Print a current trial balance to confirm the GL
  Accounts Payable Trade balance.
• Print an AP open item or aging report with no
  restrictions on the date range to confirm the AP
  Current Balance.

24
AP to GL

• Scenario 1 If there is no variance in the
  Reconcile A/P screen
• Print the AP open item report (run by Format
  Invoice Reconciliation) from 1/1901 through the
  current period.
• Print the GL trial balance for the current period
  and compare the AP account balance to the ending
  balance on the AP report.

25
AP to GL

• If the reports do not agree then there may be
  postings in future periods. Print the GL
  Transactions details report on all future periods
  for review.
• If an invoice was paid in a period prior to it
  being issued, then a variance will show between
  the two reports.
• Print the AP check register on the current period
  and look for check dates from another period.

26
AP to GL

• Scenario 2 If there is a variance in the
  Reconcile A/P screen
• Print the AP open item report (run by Format
  Invoice Reconciliation) from 1/1901 through a
  prior period.
• Print the GL trial balance for the same prior
  period and compare the AP account balance to the
  ending balance on the AP report until the out of
  balance period is discovered.

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AP to GL

• Once the out-of-balance period is discovered
• GL Transaction Details Report (Reporting on
  Journal Print the ) for the one period, selecting
  Report on Specific Journals and check mark
  Payables.
• Compare this to the AP open item report (run by
  Format Invoice Reconciliation) from the period
  through the same period, checking Include
  Zero-Balance Invoices.

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AP to GL
29
AP to GL
30
AP to GL

• In addition
• Print the GL Transaction Details Report
  (Reporting on Journal) for the one period,
  selecting Report on Specific Journals and check
  mark Cash Disbursements.
• Compare this to the AP Check Register Report run
  on the one period.

31
AP to GL
32
AP to GL
33
AP to GL

• Compare report totals and if the totals do not
  agree, reconcile the detail.
• Note In AP, an invoice is recorded as a journal
  number 3 type transaction and cash disbursements
  as journal number 4.

34
AR to GL

• AR to GL follows the same logic as AP to GL. The
  reports and table structure are essentially
  identical and the variances can be isolated and
  discovered in the same manner.
• Note In AR, a sales invoice is recorded as a
  journal number 1 type transaction and cash
  receipts as journal number 2.

35
Payroll

• What reports can be used for reconciliation
  within the payroll module
• Process Payroll reports
• Employee Tax Register
• Labor History Detail Reporting
• GL Transaction Details
• GEMM Reporting

36
Payroll

• The Employee Tax Register is a summary of the
  balances for each employee.

37
Payroll

• The Pay Check report in the Labor History Detail
  Report is the detail per employee.

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Payroll

• Print the Job Labor report in the Labor History
  Detail Report and compare to the labor expense on
  any of the Job Cost reports. i.e. Job Cost
  Status, Job Cost Detail, or the Job Detail
  Transaction report.
• Note The Job Detail Transaction report and the
  GL Transaction Details report pull from the same
  table source GLDetail.

39
Contracts

• How to reconcile in the contracts modules
• Subcontracts
• Prime Contracts
• Purchase Orders

40
Contracts - Subcontracts

• Print the Balance Report, checking Print
  Supporting Detail and Include zero-balance
  invoices.

41
Contracts - Subcontracts

• Sample of the Balance Report

42
Contracts - Subcontracts

• The detail of the invoices should agree with the
  balances on the Balance Report.
• Print the AP Retainage report and compare to the
  Balance Report.
• Print the Balance Report or Status Report by job
  and compare the total to the committed amount on
  the JC Wizard Buy Out report. If there are POs,
  that total would need to be accounted for as
  well.

43
Contracts Prime Contracts

• Print the Balance Report, checking Print
  Supporting Detail and Include zero-balance
  invoices.

44
Contracts Prime Contracts

• The detail of the invoices should agree with the
  balances on the Balance Report.
• Print the AR Retainage report and compare to the
  Balance Report.
• Print the Balance Report or Status Report by job
  and compare to the contract and change order
  amount on the JC Status report.

45
Contracts Prime Contracts

• Print the Change Order Estimate Report and
  compare to the change orders within the Progress
  Billings module and the approved and pending
  change order amounts on the JC Wizard Project
  Estimate Review Report.

46
Equipment Costing

• Print the Gross Profit Report from within the
  Equipment Costing Reports.
• This report will list the total revenue and costs
  in summary that have been posted against a piece
  of equipment.

47
Equipment Costing

• Sample report

48
Equipment Costing

• Print the GL Transaction Details Report
  (Reporting on Equipment) in order to see the cost
  detail that has been posted through GL, AP and
  Payroll against a piece of equipment.
• Note The Labor Cost on the equipment report is
  operator time (Pay Types 50-52) as posted through
  the payroll module.

49
Equipment Costing

• Print the GL Transaction Details Report
  (Reporting on Transaction), click on the NEXT
  button that is to the right and choose Equipment
  number for the Transaction ID Range. This report
  will show the detail that has been posted through
  the equipment module. Compare this to the Total
  Revenue on the Equipment reports.

50
Progress Billings

• For reconciliation purposes, the Job Status
  Report from the Progress Billings module can be
  compared to the Job Cost Status in JC Report
  Wizard, the Prime Contract Status Report, the AR
  Retainage report and the AR Open Item report run
  by job including zero balances.

51
Questions