A/p

[jcnixon]

This is more of an accounting question, since I am not! On your balance sheet is an Accounts Payable figure. What exactly does that figure represent? Is it an accumulation of other figures including your aged payables (such as?) or does it reflect only aged paybles. Thanks for any insight!!

Jan

[tzydzy]

I believe that the Accounts Payable figure should represent all open purchase orders or accrued payment obligations where you have a commitment to pay but have not yet written a check. For example, you entered a purchase order for 100 widgets from ABC company on June 1. When the report is printed, you had not written a check so it shows up as an Accounts Payable. When the check is written it goes away. So all payables should be presented on the statement old and recently entered.

[David Palmer]

Accounts Payable typically represents a company's obligations to its vendors. Purchase orders are not included because they are an order and do not become a financial obligation until an invoice is received, or in some instances when the merchandise is shipped or received and before an invoice is received. The Accounts Payable Age Analysis total should equal the the general ledger accounts payable account balance.

Bank loans, tax obligations, etc are typically not included in Accounts Payable but have their own liability accounts.

David Palmer

[jcnixon]

Thanks David, that is what I thought, but I wanted to be sure, as I have a discrepancy and before I spent a lot of time huniting it down, I wanted to be sure there was something to hunt down! Thanks again!

Jan

[Rick Johnson]

Jan,

Like accounts receivable, to find your descrepancy look for entries that are not referenced PJ or CDJ (in Accounts Receivable SJ or CRJ) - typically this will get you started in reconciling.

Rick

[jcnixon]

Rick-

GREAT tip, thanks so much, that will probably save me a LOT of time!

Jan