AugTool Documentation
Aging Differences
The aging section will show if there are any differences between the debtors/creditors general ledger accounts, the actual age analysis as well as the amount reflecting on the statements. Ideally this report should always be in balance
If your ledger does not agree to the Aging first see the following subsections of this guide.
Check Aging
Check aging by organisation
Check Document Balance State
If your aging is out of balance check the following :
Difference between the ledger and aging
The following scenario's would cause a difference between the Ledger and the Aging:
Journal Entries to the Debtors or Creditors control accounts
This is where a journal entry has been done to the actual debtors/creditors account in the general ledger. Journals should not be done directly to a control account. Below is an example of a journal to the debtors control account.
This type of entry contra's itself out by doing a debit and credit to the ledger causing the difference between the ledger and the aging.
To correct this and to balance the daily reconciliation the journal that was done must be reversed. Once this has been done then the correct entry using the source document must be done. That is if the line item on the sales invoice went to the incorrect account then the invoice should be credited and then redone with the correct account selected.
Incorrect Set up of an Organisation
Debtor’s account set up as a Creditor and a Creditors account set up as a Debtor
This sometimes happens when a new organization has been set up and the debtors receivable general ledger account is set up as the accounts payable general ledger account. You will find this under the System/Organizations and then selecting the accounts set up tab. As per below it can bee seen that the accounts receivable has been set up with the accounts payable general ledger account.
In this case when a purchase invoice was captured for this organization the ledger entry went to the debtors ledger control account. This has caused the creditors and debtors accounts to be out of balance with their general ledger accounts. As can be seen below on the daily check report under the Aging section.
The creditors age analysis shows that there was a purchases invoice captured which is correct.
If you go to the Reporting menu, Financials and then ledger report and run the ledger for the period for the accounts payable there will be no entries reflecting.
If you go into the Reporting menu, Financials and then balance sheet and run the balance sheet for the period, there will be no value in accounts payable but the amount under accounts receivable will reflect the incorrect amount.
If you go to the general ledger and then to the accounts receivable the amount of the purchase invoice entry is showing under the accounts receivable as a credit.
To correct this the following will have to be done. First do a debit note to reverse the incorrect purchase invoice. Then go to the System menu and then to the organization. Go to accounts set up and change the accounts payable to the correct general ledger account. Once this has been done then a new purchase invoice must be raised again. Once this has all been done the report can be rerun and would then be in balance.
Account in the Chart of accounts not classified
All the accounts in the chart of accounts need to be classified to enable the system to identify the correct allocation. If you look at the aging section of the daily check in the example below there is a difference in the debtors reconciliation. There are no amounts in the ledger but there are in the aging and the source document. If the account has been correctly selected under the organization but there is still a difference it could be due to the classification of the ledger account.
Here is a extract of the chart of accounts which is showing that the creditors account , which is BAR-Accounts receivable RC has not been classified as yet. Classification of the accounts will always show in brackets after the name of the account.
To correct this and to make sure that the creditors control account has the correct entries in it the following needs to be done. Go to the accounts menu and then to the chart of accounts. Then click on the account that you want to classify and select the classification of the account in the classification box as seen below.
In this case you will select the classification as receivable and then click on the submit button. Once this has been done the ledger balance will then pull through to the daily check report. As can be seen below in the daily check report under the aging section the debtors is now in balance.
Account in the Chart of accounts incorrectly classified
As per above the ledger will be a zero if the account has not been classified correctly. As per the example below the classification the accounts receivable was classified as an accounts payable account. This is reflected in the aging section of the daily check report.
In the example below if you go into the chart of accounts and into the accounts receivable ledger account it shows that the accounts receivable has been classified as accounts payable.
To classify the correct account go to the chart of accounts and click on edit. Then change the classification to the correct one and click on submit.
Once this is done then the figures will pull through correctly on the daily check report under the aging section as can be seen below.
Aging vs Statement Difference
This is where the age analysis does not balance to the statement of the organization.
The following could be causing a difference between the Aging and the Statement:
Allocation of a receipt/payment to an invoice as well as an expense
Here is an example of where a bank statement line gets allocated to an organization but also to an overhead. This will cause a difference between the aging and the statement for the organization.
This type of entry splits the payment entries between the ledger and expense account. However, as the supplier is selected the full amount of R 1,000.00 goes to the bank account but only the amount that has been allocated to the invoice R 900.00 will go to the accounts payable (creditors) account and the R 100.00 will go through to the expenses account.
The Ledger and the aging would be correct as the amount shows as R 900,00 being received.
The Statement will reflect the full payment having been received while the aging will only reflect the amount that has been allocated to the invoice. As can be see below the statement balance is 27,750.00 while the age analysis reflects 27,850.00
If you then go into the daily check report and look at the aging as per below you will notice that the aging and ledger balance but there is a difference to the statement.
To correct this you would need to do the following :
Go into the receipt/payment under the accounts menu and rollback the entry
Delete the allocation.
The entry for the bank charges would need to be raised and the correct way to deduct any charges would be to either raise and invoice or a journal entry.
Once this has been done go back to the accounts menu and select bank accounts and then select the bank account. Find the entry and then go into allocate the payment again.