Other Accounts Reconciliation

Scope

This procedure covers the reconciliation of those general ledger balance sheet accounts having account detail independent of the general ledger database.

This procedure does not cover the activities associated with the reconciliation of the following:

accounts receivable aging balances
inventory balances
accounts payable aging balances

System References

Account Inquiry [NAV3008U]

Policy

Each balance sheet account

is reconciled each period
having account source documentation independent of the general ledger database is reconciled to that source
not having account source documentation independent of the general ledger database is reconciled by verifying that the account balance is accurate, based on the best available information

Bank account reconciliations

are performed during the period when the statement is received
are not performed by anyone responsible for processing cash receipts or cash disbursements

Each bank account is associated with a single general ledger object code.

Accounts recorded as other receivables not supported by an invoice must be supported by a legal document, such as a note or contract.

Responsibility

The GL Accounting Manager is responsible for

ensuring that all general ledger account balances are reconciled
auditing all balances having discrepancies
determining the causes of discrepant balances
determining the proper offsetting accounts to debit and credit
correcting discrepant balances
posting reconciled items to the general ledger for all discrepancies

Distribution

Director of Accounting Services

GL Administrator

GL Accounting Manager

Ownership

The Director of Accounting Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed each month after the close of the general ledger.

The accounts covered by this activity are those having account detail independent of the general ledger database. The reconciliation of balance sheet accounts is intended to verify that

standard journal entries were posted accurately
the source documentation is accurate
transactions have been posted to the correct account

GL Accounting Manager

1. Complete the appropriate account detail form.

2. Reconcile the general ledger account balance to the form.

Questions and issues may have to be discussed with an accounting or other department manager. For example, you may need to discuss a reconciling item for a prepaid expense with the Accounts Payable Supervisor.

Review the account inquiry for the account balance.

General Ledger
N ® Inquiry ® Account
Account Inquiry

Refer to Inquiry - Reviewing Account Balances [NAV3008U].

Review the detail balance.

General Ledger
N ® Journals ® Enter
B ® Show Full Journal
Journals

Review the complete journal.

If the general ledger and form reconcile, goto task #5.

If an update to the form is required, goto task #3.

If an adjustment to the general ledger is required, goto task #4.

3. Update the account detail form.

Goto task #2.

Stop and complete Processing Manual Journal Entries [PRO3000Z].

4. Obtain the appropriate approval on the account detail form.

5. File the account detail form in the general ledger account reconciliation file, sequenced by date.

End of activity.