Quick Answer: How Do You Reconcile Inventory To General Ledger?

What is general ledger process?

What is a General Ledger.

General Ledger in simple language is grouping of transactions of similar nature.

An organization has multiple transactions in a day.

Every transaction leads to two entries as per the double entry system of bookkeeping.

These entries are then posted in respective accounts called ledgers..

What is General Ledger in simple terms?

A general ledger, or GL, is a means for keeping record of a company’s total financial accounts. Accounts typically recorded in a general ledger include: assets, liabilities, equity, expenses, and income or revenue. … Periodically, all transactions made within a company are posted to the general ledger.

How do you reconcile cogs?

Manually Running the COGS ProcessNavigate to Menu > Accounting > General Journal.At the list view, click Actions > Generate COGS Reconciliation.If applicable, enter the Limit-To Date (see below for important details), then click Yes.

How do you reconcile inventory?

How to reconcile inventory: a 5-step processStep 1: Check your physical inventory count. … Step 2: Compare physical count with inventory records. … Step 3: Look at inventory deliveries/shipments since the last reconciliation. … Step 4: Double down on discrepancies. … Step 5: Consistently reconcile your inventory.

How do you prepare a debtors reconciliation?

Reconcile the total balancesFind the balance of the Debtors Control account.Add the balance of any deferred transactions.Find the total outstanding balance of your customer accounts.Check for any journals posted directly to the Debtors Control Nominal account?More items…•

What is AP GL reconciliation?

Before closing the books at the end of each reporting period, the accounting staff must verify that the detailed total of all accounts payable outstanding matches the payables account balance stated in the general ledger. … This is called an accounts payable reconciliation.

What is reconciliation with example?

A reconciliation involves matching two sets of records to see if there are any differences. … Examples of reconciliations are: Comparing a bank statement to the internal record of cash receipts and disbursements. Comparing a receivable statement to a customer’s record of invoices outstanding.

How do you maintain a general ledger?

How to Close Your BooksPost entries to the general ledger. … Total the general ledger accounts. … Prepare a preliminary trial balance. … Prepare adjusting journal entries. … Foot the general ledger accounts again. … Prepare an adjusted trial balance. … Prepare financial statements. … Prepare closing entries.More items…

How are general ledger reconciliations performed?

This General Ledger Reconciliation process takes place after the end of a financial reporting period. Accountants go through each account in the general ledger of accounts and verify that the balance listed is correct and accurate. … Corrective action may involve making journal entries to correct balance errors.

What is General Ledger example?

Examples of General Ledger Accounts asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment. liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits.

Is Accounts Receivable a subledger?

What is the Accounts Receivable Ledger? The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.

What is difference between subledger and general ledger?

Key Differences Between General Ledger and Sub Ledger GL is a set of master accounts where transactions are recorded, whereas Sub-ledger is an intermediary set of accounts linked to the SL. … There can be only one ledger account in the GL, and there can be many sub-ledger accounts.

How do you reconcile accounts receivable to general ledger?

How to reconcile Accounts Receivable to General LedgerRun the Aging By Customer report in summary: -From the Report Manager select Accounts Receivable. … Run the Aging By Receivable Account: -From the Report Manager select Accounts Receivable. … Run the Ledger report: … If you do not balance, then run an Account Detail report on the GL accounts:

What are the two types of ledger?

General Ledger – General Ledger is divided into two types – Nominal Ledger and Private Ledger. Nominal ledger gives information on expenses, income, depreciation, insurance, etc. And Private ledger gives private information like salaries, wages, capitals, etc.

What are the steps you would take to close the AR period?

Period-End Process In Receivables R12Complete All Transactions for the Period Being Closed. … Reconcile Transaction Activity for the Period. … Reconcile Outstanding Customer Balances. … Review the Unapplied Receipts Register. … Reconcile Receipts. … Reconcile Receipts to Bank Statement Activity for the Period. … Post to the General Ledger.More items…

What are the types of reconciliation?

There are five main types of account reconciliation: bank reconciliation, customer reconciliation, vendor reconciliation, inter-company reconciliation and business-specific reconciliation.

How do you investigate inventory discrepancies?

If discrepancies are found, perform the following steps below first before making any changes to the inventory system.Check for computation errors.Make sure that the product counted is correct. … Re-count the stocks with discrepancies.Check for mixed products. … Check for similar stocks in other locations.More items…•

How do you reconcile inventory subledger to general ledger?

How to prepare general ledger to sub-ledger reconciliationStep 1: Compare G/L balance to the sub-ledger balance. … Step 2: Investigate reasons for the difference.After you have compared the G/L and sub-ledger and found modifications, you must investigate reasons for them. … Step 3: Adjust G/L and/or sub-ledger. … Step 4: Compare adjusted balances.More items…