Subledger to General Ledger Reconciliation Guide

Use the same company, cutoff date, currency, and posted transactions in the detailed reports and general ledger.

1. 1
   Choose one control balance to reconcile: customer receivables, supplier payables, inventory value, or goods received but not invoiced. Note its configured ledger account.
2. 2
   Open the relevant detailed report and its account in General Ledger. Set the same company and cutoff date on both. Use the same currency and warehouse scope where those controls are shown.
3. 3
   Compare totals. For receivables, inspect posted invoices, credits, payments, and allocations. For payables, inspect posted bills, debit notes, payments, and allocations.
4. 4
   For inventory, compare inventory valuation with the inventory asset account and trace unusual receipts, shipments, transfers, and adjustments.
5. 5
   For receipt clearing, inspect each received quantity that has not been fully matched to a posted bill. Compare its expected receipt value with the clearing-account balance.
6. 6
   Trace a difference to the first source document or journal that falls on only one side of the comparison. Record the reason and supported correction before signing off.

Payment and credit allocations, backdated entries, inventory timing, and manual journals can explain differences. Recheck the same cutoff after a correction; a late entry may change an earlier balance. Use your company's configured accounts, since their numbers and names can differ from examples elsewhere.

WARNING: Do not post an unexplained balancing journal. Trace the variance to the source record and use its supported correction workflow.

If the source cannot be identified, keep the reconciliation open and document the unmatched amount and records already checked. A balancing journal without an explained cause can make the totals agree while leaving the business record wrong.