Purchases
Out of balance information -- Accounts Payable
You'll find the balance of the Accounts Payable account in several locations in AccountEdge, including in windows and on reports.
The balance of an account can differ from one location to another in AccountEdge. The amount displayed in the Accounts List window, for example, should be exactly the same as the amount in the Total field in the Analyze Payables window for the Accounts Payable account. These amounts, however, are incremented differently:
- The balance in the Accounts List window reflects all transactions that have been applied to the Accounts Payable account. That is, it's the balance of all transactions in any command center on which the Accounts Payable account has been used.
- The balance in the Analyze Payables window is the balance due on open purchases only. That is, it's the balance of open purchases entered in the Purchases Command Center.
Two situations can cause a discrepancy in the balance of your Accounts Payable account:
- If you allocate funds to the Accounts Payable account in any transaction other than those performed correctly in the Purchases Command Center, such as a check, deposit or General Journal entry, the Accounts Payable account reflects the transaction, but the Analyze Payables window doesn't, because no invoice was recorded. (To find out whether a transaction was applied to the Accounts Payable account)
- If you use the Accounts Payable account as the allocation account in a purchases transaction, the balance of the Accounts Payable account isn't affected because the Accounts Payable account is both debited and credited by the transaction. This leaves the account balance unchanged. However, the Analyze Payables window displays the transaction because there's a balance due on the purchases transaction. (To find out whether Accounts Payable is the allocation account on a purchase)
Note: Use this information to understand Out of Balance amounts on Aged Payables and Payables Reconciliation reports
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