Month End Reconciliation
in StarBuilder
Session - 211
Presented by
Adam Hutchins
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
Trial Balance
What to do if the trial balance is not in
balance:
1) 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.
Trial Balance
2) Run the Transaction Detail Report by
Journal – one journal at a time.
Trial Balance
Three things to look for:
A) Does page one of the report show a
transaction with a missing account
number?
B) Does the last page show a balance
other than zero?
C) Does the report run on the GL journal
show postings made with JC only post
code? i.e. 9171, 9172
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.
Financial Statements
What to do if the Financials are out of
balance:
Ask and answer three questions
1) Is the Trial Balance in balance?
2) Do the Assets = Liabilities + Equities?
3) Does the current year’s earnings on
the balance sheet equal the net profit
on the YTD income statement?
Financial Statements
1)
2)
3)
4)
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
Financial Statements
Three possibilities of an incorrect
format:
a) An account is missing from the setup.
b) An account is listed more than once
Every account should be included on
the balance sheet and every income
and expense account on the P&L.
c) There is an incorrect sign (+/-)
designation.
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.
Bank Reconciliation
How to balance the bank statement with
the StarBuilder Bank Reconciliation:
Bank Reconciliation
• The statement date is the date assigned
to reconciled records. The beginning
balance is from the bank statement.
Bank Reconciliation
• Mark the records to be reconciled. When
done the Ending Balance should match the
ending balance on the Bank statement.
Bank Reconciliation
Reconcile to the current cash balance.
Run the report on outstanding transactions.
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.
Job Cost to GL
How to reconcile the job cost expense
and revenue to the GL account
balances:
1) 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.
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.
Job Cost to GL
Sample WIP report
Job Cost to GL
Sample trial balance report
Job Cost to GL
What to do if the balances do not
agree:
1) 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.
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.
AP to GL
How to reconcile the AP ledger to the
AP account balance in the GL:
Review the Reconcile AP Balances
screen.
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.
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.
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.
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.
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.
AP to GL
AP to GL
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.
AP to GL
AP to GL
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.
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.
Payroll
1)
2)
3)
4)
5)
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
Payroll
The Employee Tax Register is a summary
of the balances for each employee.
Payroll
The Pay Check report in the Labor History
Detail Report is the detail per employee.
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.
Contracts
How to reconcile in the contracts
modules:
• Subcontracts
• Prime Contracts
• Purchase Orders
Contracts - Subcontracts
Print the Balance Report, checking Print
Supporting Detail and Include zerobalance invoices.
Contracts - Subcontracts
Sample of the Balance Report
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.
Contracts – Prime Contracts
Print the Balance Report, checking Print
Supporting Detail and Include zerobalance invoices.
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.
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.
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.
Equipment Costing
Sample report
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 5052) as posted through the payroll
module.
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.
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.
Questions