Accounts Payable Purchase Order Balancing Presented by Brannon Knowles

Overview How to Balance PO’s How it affects your General Ledger Purchase Order Process & Flow Through Your System How to Balance PO’s How it affects your General Ledger How it affects your Year-End How presentation will benefit audience: Adult learners are more interested in a subject if they know how or why it is important to them. Presenter’s level of expertise in the subject: Briefly state your credentials in this area, or explain why participants should listen to you.

How PO’s Affect Your General Ledger Cash Accounting or Accrual Accounting Encumbrance Entry Statement of Expenditure – Shows the amount of outstanding PO’s for each Expenditure Number More Accurate Picture Example objectives At the end of this lesson, you will be able to: Save files to the team Web server. Move files to different locations on the team Web server. Share files on the team Web server.

How to Balance Purchase Orders Run Trial Balance Run PO Outstanding Report by GL Account Compare 34110 on the Trial Balance to the Fund total on Outstanding PO report. ​First run a PO Outstanding Report By GL Account, be sure to enter the From PO date as the first day of the current fiscal year, the thru date would either be the current day or if you have entered PO's for a later date you can enter thru that date. If you want to just check one account you can enter that as the From and thru account or you can leave it blank to get everything. It will be in Fund, account order. I would start off comparing the Fund totals from this report back to the balance of 34110 (or whatever the Encumbrances-Current Year account is) on the Balance Sheet. If you find a fund that the totals don't match then you can start comparing the GL Accounts within the fund. You would need to run a Statement of Encumbrances report from FM and you can compare the totals per GL account to find where the balances are off.

How to Balance Purchase Orders Run PO Balancing Report ​First run a PO Outstanding Report By GL Account, be sure to enter the From PO date as the first day of the current fiscal year, the thru date would either be the current day or if you have entered PO's for a later date you can enter thru that date. If you want to just check one account you can enter that as the From and thru account or you can leave it blank to get everything. It will be in Fund, account order. I would start off comparing the Fund totals from this report back to the balance of 34110 (or whatever the Encumbrances-Current Year account is) on the Balance Sheet. If you find a fund that the totals don't match then you can start comparing the GL Accounts within the fund. You would need to run a Statement of Encumbrances report from FM and you can compare the totals per GL account to find where the balances are off.

How to Balance Purchase Orders Run PO Balancing Report Run PO Outstanding Report By GL Account Run Account Analysis with only Encumbrance Transactions ​First run a PO Outstanding Report By GL Account, be sure to enter the From PO date as the first day of the current fiscal year, the thru date would either be the current day or if you have entered PO's for a later date you can enter thru that date. If you want to just check one account you can enter that as the From and thru account or you can leave it blank to get everything. It will be in Fund, account order. I would start off comparing the Fund totals from this report back to the balance of 34110 (or whatever the Encumbrances-Current Year account is) on the Balance Sheet. If you find a fund that the totals don't match then you can start comparing the GL Accounts within the fund. You would need to run a Statement of Encumbrances report from FM and you can compare the totals per GL account to find where the balances are off.

How to Balance Purchase Orders Search PO by Date ​First run a PO Outstanding Report By GL Account, be sure to enter the From PO date as the first day of the current fiscal year, the thru date would either be the current day or if you have entered PO's for a later date you can enter thru that date. If you want to just check one account you can enter that as the From and thru account or you can leave it blank to get everything. It will be in Fund, account order. I would start off comparing the Fund totals from this report back to the balance of 34110 (or whatever the Encumbrances-Current Year account is) on the Balance Sheet. If you find a fund that the totals don't match then you can start comparing the GL Accounts within the fund. You would need to run a Statement of Encumbrances report from FM and you can compare the totals per GL account to find where the balances are off.

How to Balance Purchase Orders Go to the Associated Tab on the PO Change View to GL Account Entries ​First run a PO Outstanding Report By GL Account, be sure to enter the From PO date as the first day of the current fiscal year, the thru date would either be the current day or if you have entered PO's for a later date you can enter thru that date. If you want to just check one account you can enter that as the From and thru account or you can leave it blank to get everything. It will be in Fund, account order. I would start off comparing the Fund totals from this report back to the balance of 34110 (or whatever the Encumbrances-Current Year account is) on the Balance Sheet. If you find a fund that the totals don't match then you can start comparing the GL Accounts within the fund. You would need to run a Statement of Encumbrances report from FM and you can compare the totals per GL account to find where the balances are off.

How do PO’s Flow Through Your System Increase or PO Entered EC Debit to Expense Account (51300-142) DR to Unliquidated Encumbrance Control (14200) CR to Current Year Encumbrance (34110) -14200 & 34110 only exist when creating a Balance Sheet or Trial Balance- Lesson descriptions should be brief.

How do PO’s Flow Through Your System Reduce or Liquidate PO PO Credit to Expense Account (51300-142) DR to Current Year Encumbrance (34110) CR to Unliquidated Encumbrance Control (14200) Lesson descriptions should be brief.

How do PO’s Flow Through Your System Liquidate PO by Invoice Payment PO CR to Expense Account (51300-142) CD DR to Expense Account (51300-142) CR to Cash Account (11140) Lesson descriptions should be brief.

PO Flow at Year End (34110) & (14200) are non-existent accounts so there are no End of Year transactions. An entry is made to (34120) for all PO’s rolled from Current Year to Prior Year. DR (39000) CR (34120) (14600) starts the year with a zero balance Normally on has DR entries. CR entries represent Voided Checks or JE’s for Audit Adjustments A Prior Year Encumbrance (PE) entry is made to expense accounts for rolled PO’s. Lesson descriptions should be brief.

PO Flow at Year End Deleting/Liquidating a Prior Year (PY) PO DR to Encumbrance PY Reserve (34120) CR to Undesignated Fund Balance (39000) (PEL) CR to Expense Account (51300-142) Lesson descriptions should be brief.

PO Flow at Year End Full PY PO Liquidation with Check (CD) DR to Encumbrance PY Control (14600) (CD) CR to Cash (11140) (PEX) DR to Expense Account (51300-142) (PEL) CR to Expense Account (51300-142) Lesson descriptions should be brief.

PO Flow at Year End Full PY PO Liquidation with Check and Invoice Less Than PO Amount Invoice = $500 PY PO = $550 (CD) DR to Encumbrance PY Control (14600) $500 (CD) CR to Cash (11140) $500 (PEX) DR to Expense Account (51300-142) $500 (PEL) CR to Expense Account (51300-142) $550 Lesson descriptions should be brief.

PO Flow at Year End Full PY PO Liquidation with Check and Invoice Greater Than PO Amount OPTION 1 Invoice = $550 PY PO = $500 (CD) DR to Encumbrance PY Control (14600) $500 (CD) DR to Expense Account (51300-142) $50 (CD) CR to Cash (11140) $550 (PEX) DR to Expense Account (51300-142) $500 (PEL) CR to Expense Account (51300-142) $500 Lesson descriptions should be brief.

PO Flow at Year End Full PY PO Liquidation with Check and Invoice Greater Than PO Amount OPTION 2 – Not Recommended Invoice = $550 PY PO = $500 (CD) DR to Encumbrance PY Control (14600) $550 (CD) CR to Cash (11140) $550 (PEX) DR to Expense Account (51300-142) $500 (PEL) CR to Expense Account (51300-142) $500 Lesson descriptions should be brief.

PO Flow at Year End Difference between Encumbrance PY Reserve (34120) & Encumbrance PY Control (14600) should be the PY PO Amount Encumbrance PY Reserve should only change is PY PO’s are deleted If everything works the way it should, (34120) would remain the same and only change at Year End Lesson descriptions should be brief.

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