Out of balance information for Accounts Payable account and Analyze Payables window

Out of balance information -- Accounts Payable

If you compare the balances of the Accounts Payable account in the Accounts List window and the Analyze Payables window, you may find out of balance amounts. This can occur because the amounts are calculated 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.

Using the Payables Reconciliation report

Use the Payables Reconciliation Exceptions report to compare the total of all the balances from all your vendors and the current balance of the linked accounts payable account. (You specified the account that is your linked payables account in the Purchases Linked Accounts window.)

If the Payables Reconciliation Exceptions report shows an out of balance amount:

Any entries to the linked accounts payable account that have been generated outside of the Purchases command center are displayed in the report.

Any entries in which the linked accounts payable account was used as the allocation account on a purchase are displayed.

Situations that 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. (Use the Payables Reconciliation Exceptions report to find these situations.)

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. (Use the Payables Reconciliation Exceptions report to find these situations.)

If you've entered an incorrect opening account balance for your linked accounts payable account or you've entered incorrect historical purchases there will be a non-zero amount displayed in the Out of Balance window of the Vendor Balances window. (To understand an out of balance amount -- historical purchases)

Note: Use this information to understand Out of Balance amounts on Aged Payables and Payables Reconciliation reports