Sage 100 - How to reconcile Purchases Clearing (MAS 90 / MAS 200) Video Lecture | A detailed Guide to SAGE 100 - Data & Analytics

one of the steps you'll need to do to
complete your month-end
reconciliation for inventory and
purchase order is to reconcile the
purchases clearing account the purchases
clearing airport is used to simplify
month-end reconciliation of the
purchases clearing account balance with
open amounts on purchase orders the
purchases clearing account is a
liability holding account that contains
inventory received and received a Goods
entry without an invoice until the
invoice is posted in receipt of invoice
entry the account is credited when the
goods are received into inventory and
debited when the invoice is received in
receipt of invoice entry so to reconcile
will run the purchases clearing report
you may need to run this a few times
depending upon how your company is set
up the purchase of clearing account is
assigned to each product line in
inventory management product line
maintenance so if you have multiple
purchases clearing accounts you would
need to run this for each product line
you'll then run the GL trial balance to
compare and if the amounts match your
imbalance let's take a look
so the first thing we're gonna do is run
the purchases clearing report in
purchase order on the period and menu
and we'll go ahead and run this report
now we're looking at the last value at
the report total and in this situation
we can see that it's eight thousand
eight hundred and eighty nine dollars
now I need to compare that value there's
only one purchases clearing account in
this company with my general ledger
trial balance
and bring in the purchases clearing
account
and preview and I'm looking for the
balance here and we can see that the
balance in the purchases clearing
account is eight thousand eight hundred
and nine dollars so in this company we
are in balance but there are instances
where the purchases clearing account is
out of balance after updating all of
your inventory and purchase order
transactions this can happen if you've
entered receipts and inventory
management there's actually a number of
different reasons that the out of
balance can occur one of which is that
inventory receipts are entered in
inventory transaction entry remember
inventory receipts need to be entered
into purchase order and the invoice
needs to be received into purchase order
however the ordered quantity or unit
cost could be changed after performing
either receipt of goods entry or receipt
of invoice entry so that could cause a
discrepancy somebody may have done a
manual entry to the purchases clearing
account and that will cause a
discrepancy another reason might be the
receipt of goods register or the receipt
of invoice register was updated to an
incorrect general ledger period so in
order to help determine what's going on
and help us solve the mystery we want to
run the general ledger detail report now
if we are out of balance we run the
general ledger detail report and if it's
due to a receipt transaction that was
entered in inventory we need to record
that receipt in accounts payable so
let's take a look
again we're going to start by running
the purchases clearing report
and looking at the value and we see it's
fourteen thousand seven hundred eighty
three dollars and ten cents now let's
compare that to general ledger because
that's going to be our determinant and
pull in the purchases clearing account
and we see that the amount in the
purchases clearing account is very
different than what we saw on the
purchases clearing report so the next
thing we want to do is run the general
ledger detail report
and in looking at this report we can see
that this indeed matches the balance
that we saw in the general ledger trial
balance but let's look here we see that
there was a purchases clearing receipt
of goods done in inventory hmm so that's
that could be a challenge here we see
that 14,000 so we've got this 171,000
that was entered into inventory but it
should have been done through purchase
order so now we need to fix it and to do
that we're going to go into accounts
payable and record an offsetting entry
to clear the purchases clearing and
offset it with our accounts payable
all right so now I don't want it to go
to this jail account now when the
inventory was received the proper
posting accounts were probably posted
too it's just that it was received in
the wrong module so I'm going to offset
this to the purchases clearing account
and now let's see what happens and
transpires after we update our registers
so here we can see posting to the
purchases clearing account and we can
see that offset that's going to be made
to our purchases clearing and accounts
payable and we'll update to the daily
transaction register
now when I go back to purchase order
there really should be no changes to the
value on this report this still
represents the amount of inventory
that's been received but not yet
invoiced however when I now go to
general ledger and run the trial balance
here
we now find that we've got that fourteen
thousand seven hundred eighty-three
dollars and ten cents so we've done our
correction and we are now in balance