Reconciling payables is one of those fundamental tasks that can reduce working capital needs and minimize bank borrowings, but it can be a labor-intensive process. However, if you learn a few key concepts, you will find that reconciling payables to the general ledger is not difficult at all. Here are a few “tricks of the trade” to help you do just that.
Reference Field in Unposted Journal Entries
When you post a transaction from payables to the ledger, the ledger will contain a new journal entry. Therefore, data entered by the user into the Description field in the Payables Transaction Entry window will appear in the Reference field of the corresponding unposted journal entry in the ledger.
However, this is true only if the Posting Setup window’s Create a Journal Entry setting is set to Per Transaction. Change the setting to Per Batch and the Reference field will read “Payables Trx Entry,” so be sure you understand which result you want.
Reference Field in Posted Journal Entries
If you want to review posted journal entries for the current year, you must go to the Journal Entry Inquiry window.
Here, the data entered by the user into the Description field of Payables Transaction Entry appears in the Reference field of the Journal Entry Inquiry window if the Create a Journal Entry field is set to Per Transaction. But when this field is set to Per Batch, the Reference field in the Journal Entry Inquiry window contains the payables transaction Description for the first line of the scrolling window of Journal Entry Inquiry. Regardless of the posting setting, when no data is entered into the Description field of Payables Transaction Entry, the Reference field in the Journal Entry Inquiry window and in the General Ledger Transaction Entry (journal entry) window will be populated with Payables Trx Entry.