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A/R Aging Report for Month End Reconciliation

During the month end closing you will be running many financial reports to make sure your financial house is in order before closing the period. One of these important reports in SAP Business One is the A/R Aging Report. It should become a part of your company's reconciliation procedures for month end closing.

The first thing you should do is to make sure the A/R Aging report balances with your accounts receivable G/L account.

Get to the A/R Aging Report by clicking through the main menu to:

Financials -> Financial Reports -> Accounting -> Aging -> Customer Receivables Aging

A/R Aging Report Matched with G/L
A/R Aging Report Matched with G/L

Run the A/R aging report first with no filters. It will give you a current picture as of today's date of your A/R aging. The aging report will open completely expanded, so click the collapse all button to make it easier to see the totals. Open up the chart of accounts at Financials -> Chart of Accounts  on the main menu to find your accounts receivable G/L account balances. Compare the aging report balance with the G/L account balance, they should match.

If your company uses separate G/L accounts for account receivables select the aging report option "Control Accounts" to manually select them one-by-one. Run your aging report for each G/L account. Then compare the individual control accounts against the balance of it's corresponding G/L account.

End of Month Aging Settings
End of Month Aging Settings

Next run the A/R aging report again for the last day of the month in the period you are closing. This should balance to the "Balance Sheet" for your end of month procedures. This time running the report set the setting for "Display Reconciled Transactions" and set your aging date as the last day of the period you are closing. In the example to the right we are reconciling the month of November in 2013.

Find the section on the "Balance Sheet" report that shows your account receivable figures for the month. Make sure they balance with your end of month A/R aging report.

That's all there is to it! Keep in mind there are many other recommended reports to run for your financial month end process. Stay tuned for more report explanations and use this article to help shape your company's strategy around month end reconciliation using the A/R aging report.

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Peter Canale
Peter Canale Follow Connect

Co-founder of SBOhub, starter, experienced executive, and probably having the best day ever.

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