Variance in AR Listings and GL Accounts

Question

What causes Variance in AR and GL account? how can we correct such discrepancies?

Below Discrepancies with AR and GL Account.

Items marked in RED are as a result of Application generating unexpected Gain/Loss Amounts and Adjustments in Accounts Receivable.

Items marked in GREEN are GL Journals that need to be reversed

Variance Between AR and GL

Customer	Customer Name	AR	GL	Grand Total

(blank)	(blank)		-287,877.69	-287,877.69
AGA001	(blank)		-39,399,922.38	-39,399,922.38
LAN001	LANCET LABORATORIES TANZANIA	519,130,795.22	-519,398,673.64	-267,878.42
MIL001	(blank)		1,000,000.00	1,000,000.00
Grand Total		7,496,567,071.64	-7,535,522,750.12	-38,955,678.48

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Best answer by Laura02 13 April 2023, 17:02

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Laura02 · Accepted Answer

Hello,You have discovered the #1 reason for discrepancies between AR control account and GL: GL entries to a control account.You have also identified Gains/Losses posting incorrectly to AR. From what Module are the Gain/Loss entries, what kind of transactions? Possibly Gain/Loss on Currency, Gain/Loss on sale of Asset?Gain/Loss accounts on AssetsGain/Loss accounts on CurrenciesSometimes a user enters the AR Account on an Invoice or Credit Memo and that too will cause a discrepancy because we see an open Invoice on the Aging and debit/credit to the same AR account in GL.When you have adjusted the AR account to match the Aging, remember to Un-check “Allow Manual Entry” in the Chart of Accounts.

Laura02 · Answer

Hello @helpdesk37 ,Were you able to identify the source screen of the Gain or Loss and update the accounts to something other than AR?Then enter a journal transaction to remove the Gain/Loss from the AR control account.At this point, the AR control account should match the AR Aging report. When the AR Control Account matches the AR Aging report, un-check ‘Allow Manual Entry’ for the AR Account in the GL Chart of Accounts screen.Laura

Variance in AR Listings and GL Accounts

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